In 2026, China is set to roll out subsidy policies aimed at encouraging the scrapping, renewal, and replacement of vehicles.

Subsidies for Scrapping and Renewal:

Individuals who scrap gasoline passenger vehicles registered prior to June 30, 2013, diesel and other fuel-powered passenger vehicles registered before June 30, 2015, or new energy passenger vehicles registered before December 31, 2019, and subsequently purchase eligible new energy or gasoline passenger vehicles with an engine displacement of 2.0 liters or less, will qualify for subsidies. Specifically, those who scrap an old vehicle and opt for a new energy vehicle will receive a subsidy amounting to 12% of the new vehicle's purchase price, with the maximum subsidy not exceeding 20,000 yuan. Meanwhile, individuals who scrap a gasoline vehicle and purchase a new gasoline vehicle will be eligible for a subsidy equivalent to 10% of the new vehicle's price, capped at 15,000 yuan. To avail of these subsidies, application materials must be acquired in 2026, and all relevant certificates must be issued or processed in Shanghai. Additionally, the owner of the scrapped vehicle and the owner of the newly purchased vehicle must be the same individual, and the old vehicle must have been registered under the applicant's name before January 8, 2025.

Subsidies for Replacement and Renewal:

Individuals who transfer their registered passenger vehicles and subsequently purchase eligible new energy or gasoline passenger vehicles with an engine displacement of 2.0 liters or less will also be eligible for subsidies. Specifically, those who trade in their old vehicle for a new energy vehicle will receive a subsidy equivalent to 8% of the new vehicle's purchase price, with the maximum subsidy not exceeding 15,000 yuan. On the other hand, individuals who trade in their old vehicle for a gasoline vehicle will be eligible for a subsidy equivalent to 6% of the new vehicle's price, capped at 13,000 yuan. Relevant application dates must fall within 2026, and the owner of the transferred vehicle and the owner of the newly purchased vehicle must be the same person. The old vehicle must have been registered under the applicant's name before January 8, 2025, and must not have been the subject of any other vehicle subsidy applications in the city. Furthermore, all relevant certificates for the newly purchased vehicle must be issued or processed in Shanghai.