China has issued new nationwide guidelines for 2026, expanding its consumer trade-in subsidies for automobiles and home appliances to stimulate domestic demand and encourage household upgrades.
The Ministry of Commerce and other departments recently released the detailed 2026 implementation rules for automobile trade-in subsidies. The policy expands the eligible vehicle registration dates for scrap-and-replace subsidies compared to 2025. It maintains subsidies for both vehicle scrapping and trade-ins, offering a fixed percentage of the new car's sales price nationwide.
The policy rollout has spurred immediate activity in showrooms. At a car dealership cluster in Jinhua City, east China's Zhejiang Province, foot traffic has increased noticeably.
"I've just learned about the trade-in policy. When you add it on top of other offers, the discount is quite significant. Without this policy, we would have had to pay an extra 10,000 to 20,000 yuan (about 1,430-2,860 U.S. dollars). This is real savings for ordinary people," said Ms. Shi, a customer.
The policy transition from a flat-rate to a proportional subsidy is a key feature for 2026. Chen Shaokun, sales director at an auto sales company in southwest China's Yunnan Province explained the new proportional subsidy's advantage.
"It changed from a fixed amount to a percentage of the new car's invoice price. This means if you buy a more expensive model, the subsidy will be higher," Chen said.
The trade-in drive extends to home appliances. In Ganzhou City, east China's Jiangxi Province, local malls have put on new posters to advertise 2026 subsidies for refrigerators, washing machines, and TVs.
"Today, I came to buy a fridge, a TV, and a washer. With the national subsidy for trading in old appliances this New Year, I can save over 3,000 yuan on this set. It's a really good policy," said customer Song Xiangxiang.
The substantial subsidies, combined with year-end demand for new home fittings, have significantly boosted sales.
"Since the national subsidy restarted on Jan 1, our daily turnover has reached 100,000 to 200,000 yuan, multiple times higher than usual," said Zeng Qiang, manager of a local appliance store.
China rolls out nationwide car, appliance trade-in subsidies for 2026 to boost consumption
