Gasgoo Munich-At 9:00 a.m. on June 22, Hefei's Luyang District kicked off a campaign to boost auto consumption. The local government has allocated 5 million yuan in subsidies for this round, offering up to 6,000 yuan for internal combustion vehicles and 7,000 yuan for new energy vehicles.
Running from June 22 to June 30, the program targets individual consumers purchasing passenger vehicles—excluding commercial or used cars—from participating dealerships in Luyang District. Notably, these subsidies cannot be combined with municipal consumption vouchers or national trade-in policies covering vehicle scrappage or replacement.
Image Source: Hefei Municipal People's Government
The participating automakers span a broad spectrum. New energy brands include Denza, ZEEKR, Geely Galaxy, Avatr, AITO, and Leapmotor, while internal combustion and luxury marques cover Mercedes-Benz, BMW, Audi, Jaguar Land Rover, Lexus, and FAW-Volkswagen. From daily commuters to luxury sedans, off-roaders, and EVs, the subsidy scope is designed to meet diverse consumer needs.
As a national leader in the new energy vehicle sector, Hefei has leveraged economies of scale to drive high-quality industrial cluster growth in recent years. The city has assembled six major automakers—JAC, BYD, NIO, Volkswagen, Changan, and Ankai—achieving a comprehensive ecosystem that includes foreign giants, state-owned enterprises, startups, local proprietary brands, and the Huawei ecosystem. It has also fostered over 600 core components suppliers, such as Gotion High-Tech and Juyi Technology.
Hefei stands as the country's only city designated as a pilot zone for five distinct initiatives: battery swapping, "dual-smart" city infrastructure, vehicle-road-cloud integration, and supply chain systems.
In 2025, Hefei's total vehicle output reached 1.87 million units, with new energy vehicles accounting for 1.37 million of those. That figure secured the top spot among Chinese cities for two consecutive years, with the industrial cluster generating over 600 billion yuan in revenue.
By precisely targeting vehicles across various price points, Luyang District's subsidies are designed to stimulate immediate demand. The move aims to boost local auto retail and registration-related sectors while providing policy support to accelerate the penetration of new energy vehicles in the regional market.
