Gasgoo Munich- Shanghai's commerce commission, alongside seven other departments, has unveiled detailed rules for the city's 2026 car scrappage and trade-in subsidy program. The initiative officially launches subsidies for scrapping old vehicles or trading them in, with individual consumers eligible for payouts of up to 20,000 yuan. The policy takes effect on January 1, 2026, and the application window closes on January 10, 2027.
Image source: Screenshot from the Anting Official WeChat account
The subsidy program operates on a sign-up, lottery, and qualification basis. Consumers nationwide are limited to a single subsidy, applicable to either scrappage or trade-in. Lotteries will be held monthly in principle, with the inaugural draw scheduled for February 6. Unsuccessful applicants will automatically roll over to the next round, eliminating the need to re-register.
Scrappage incentives offer the most generous payouts. Consumers who scrap gasoline passenger cars registered before June 30, 2013, diesel or other fuel vehicles registered before June 30, 2015, or new energy vehicles registered before December 31, 2019, can claim a subsidy equal to 12% of the purchase price for a new NEV, capped at 20,000 yuan. Purchases of internal combustion engine vehicles with 2.0-liter displacements or smaller qualify for a 10% subsidy, capped at 15,000 yuan. For trade-ins, subsidies are set at 8% of the price for new NEVs (capped at 15,000 yuan) and 6% for internal combustion engine vehicles (capped at 13,000 yuan).
Applicants must meet specific criteria: the old vehicle must have been registered in their name before January 8, 2025, and be scrapped or transferred ownership during 2026. The new vehicle requires a sales invoice issued in Shanghai and local registration, with all relevant documentation obtained within the year. Lottery winners must submit materials corresponding to their update type—scrappage applications can be processed via the "Car Old-for-New" mini-program, while trade-ins are handled through platforms like the "Shanghai Commerce" WeChat official account.
