China expands car, appliance trade-in subsidies for 2026 to boost consumption
China has issued nationwide guidelines for 2026 to expand trade-in subsidies for automobiles and home appliances, aiming to stimulate domestic consumption and encourage household upgrades.
The Ministry of Commerce released detailed rules that broaden eligibility for vehicle scrap-and-replace subsidies compared with 2025. The policy maintains support for both vehicle scrapping and trade-ins, shifting from flat-rate subsidies to a percentage of the new car’s sales price nationwide.
The rollout has quickly boosted showroom activity. In Jinhua, Zhejiang Province, car dealerships reported a noticeable rise in customer visits. A local buyer said the policy reduced costs by 10,000 to 20,000 yuan, delivering tangible savings for consumers.
According to auto industry representatives, the proportional subsidy means higher-priced vehicles receive larger support, increasing purchasing incentives.
The trade-in program also covers home appliances. In Ganzhou, Jiangxi Province, subsidies for refrigerators, washing machines and TVs have driven strong sales. A consumer said she saved over 3,000 yuan by replacing multiple appliances.
Retailers reported that since subsidies resumed on Jan 1, daily turnover has reached 100,000 to 200,000 yuan, several times higher than usual.
