On December 31st, the China Automobile Dealers Association disclosed that, in comparison to preceding years, the 2026 iteration of the policy has eased the registration deadline requirements for a variety of used vehicle types that qualify for subsidies. Specifically, it extends the cutoff by one year relative to the 2025 policy framework. This strategic adjustment significantly expands the scope of policy advantages, enabling a greater number of owners of older vehicle models to avail themselves of subsidies. Consequently, it expedites the process of vehicle upgrades and effectively unlocks latent consumption potential.
Based on preliminary projections by the China Automobile Dealers Association, the tally of passenger vehicles eligible for subsidies is projected to exceed the 12 million mark, potentially spurring sales of approximately 1.5 million new vehicles. The 2026 vehicle trade-in initiative is poised to deliver enhanced benefits to a broader spectrum of consumers.