China scrapped 3.7 million vehicles in H1 under its trade‑in program
Scrapping old vehicles is not merely about disposing of obsolete machinery; it is a crucial step toward a closed‑loop resource economy. Each recycled car becomes raw material for new products, reducing environmental pressure and fostering green economic growth. This transformation turns waste into wealth and lays the groundwork for a more sustainable future.
For eligible vehicles, a scrap‑metal recycling certificate is issued. Owners who scrap their old cars and purchase new energy vehicles can receive a subsidy equal to 12 % of the vehicle’s value, but not exceeding 20,000 yuan (about USD 2,980). For those buying internal‑combustion‑engine cars, the subsidy is 10 % of the value, capped at 15,000 yuan, said Zhang Ying, Secretary‑General of the Commercial Vehicle Full‑Life‑Cycle Management Department under the China Automobile Dealers Association.
Upon arrival at the dismantling plant, the scrapped vehicle’s identification data – including the VIN and engine number – are first checked against the registration certificate. Only after verification can the car proceed to the dismantling stage. With professional equipment, the vehicle is quickly taken apart: engines, seats, wiring harnesses and plastic components are removed and sorted by category; within a short time, only the frame remains.
In another workshop, compressors press the frame and other metal parts into neat square bales, which are then shipped to steel mills for smelting into new steel products. Meanwhile, more than a dozen types of hazardous waste – batteries, used motor oil, coolant – are handed over to licensed professional companies for treatment. Through such thorough dismantling, dozens of types of industrial raw materials can be obtained from an average passenger car.
“In just over a year, we have recycled about 5,000 tonnes of steel scrap and about 1,000 tonnes of non‑ferrous metals. Plastic waste, tyres and rubber, and other materials have been transported and disposed of in compliance with regulations. This year, we expect to increase our production capacity by 20 %,” said Ma Houlong, head of Nanjing Chengkuang Resource Recycling Technology Company.
As reported by CCTV+, China’s government‑backed consumer goods trade‑in programs generated 1.1 trillion yuan (about 162.3 billion U.S. dollars) in the first half of 2026, benefiting 150 million consumers. From January to June, the programs facilitated the trade‑in of 3.707 million vehicles and 63.266 million home appliances, alongside the purchase of 79.098 million digital and smart products. The proportion of new energy vehicles (NEVs) benefiting from the auto trade‑in subsidy has steadily increased since the beginning of 2026, reaching 65.4 percent in June. This surge supported the domestic retail penetration rate for NEVs to hit a record high of 62.4 percent in the second quarter. Additionally, 19 provincial‑level regions have implemented autonomous subsidy policies for specific categories.
