Faced with the downward pressure on the auto market brought about by the intertwining effects of multiple factors, from the central to local governments, a multi-pronged consumption-promoting policy is being introduced intensively to rush into the peak consumption season before the Spring Festival to stabilize the "basic market" of automobile consumption. According to incomplete statistics from reporters from the Associated Press, more than 20 provinces, cities, and autonomous regions across the country have released detailed rules for car trade-in, scrap renewal, or car purchase subsidies. The provinces and cities involved include Beijing, Shanghai, Chongqing, Zhejiang, Guizhou, Heilongjiang, Inner Mongolia, Shenzhen, Xi'an, and Wuhan.
On February 2, nine departments including the Ministry of Commerce issued the "2026 "Tesco New Year" Spring Festival Special Event Plan". It proposes to encourage localities to increase the amount of trade-in subsidies for consumer goods during the Spring Festival, increase support for offline physical retail, and mobilize companies to continue to carry out exhibitions and sales activities related to automobiles, home appliances, digital and smart products during the Spring Festival.
On the same day that 9 departments including the Ministry of Commerce issued a document to encourage localities to increase automobile subsidies, according to the "Shanxi Provincial People's Government", the Provincial Department of Commerce, the Provincial Development and Reform Commission, and the Provincial Department of Finance jointly issued a notice to launch the trade-in policy for consumer goods in 2026. The funds will come from the central ultra-long-term special government bond funds and provincial matching funds (ratio 9:1), covering multiple fields such as automobiles, home appliances, and digital smart products. Among them, the "notarized lottery" method is used to trade in old cars for new ones. The maximum subsidy for individual consumers to buy new energy passenger cars after scrapping or replacing old cars is 20,000 yuan, and the maximum subsidy for purchasing fuel passenger cars with 2.0 liters or less is 15,000 yuan. A lottery for car trade-in is organized every month, and consumers who win the lottery can apply for subsidies within 3 months.
The day before, Chengdu’s latest automobile consumption subsidy was launched. According to the "Chengdu Release", the first round of automobile consumption subsidies in Chengdu High-tech Zone will be launched in 2026. The total subsidy budget will not exceed 31 million yuan, of which the scale of new car consumption subsidies will be 29 million yuan and the scale of second-hand car consumption subsidies will be 2 million yuan. Consumers who purchase new or second-hand cars and meet the corresponding conditions have the opportunity to receive a car purchase subsidy of up to 8,000 yuan from the Chengdu High-tech Zone. Among them, those who purchase second-hand cars can apply for a car purchase subsidy of up to 4,000 yuan.
Earlier, eight departments including the Shanghai Municipal Commission of Commerce jointly issued the "Implementation Rules of Shanghai Automobile Trade-in Subsidy Policy in 2026", officially launching vehicle scrapping renewal and replacement renewal subsidy activities. Individual consumers can receive up to 20,000 yuan in subsidies. The policy will be implemented from January 1, 2026, and the application deadline is January 10, 2027.
"All regions are gradually opening trade-in subsidies for old ones in 2026, and new cars are being launched one after another after the Spring Festival and before the auto show. Car sales are expected to stabilize and rebound." According to Cui Yan, deputy director of the Guolian Minsheng Research Institute and chief automotive analyst, the overall demand for automobile terminals in January was relatively flat. The main reason is that local subsidies on the policy side have not yet been officially launched, and at the same time, there are fewer newly launched models on the supply side. "Currently, these two factors have improved. Since mid-to-late January, local governments have successively launched trade-in subsidies. From the supply side, after the Spring Festival and before the auto show, various car companies will successively launch new cars or start warm-up activities before the launch of new cars. "It is expected that automobile demand will stabilize and rebound after the Spring Festival. "
According to data from the Ministry of Commerce, from 2024 to 2025, my country will trade in 18.3 million vehicles, of which new energy vehicles account for nearly 60%. Some industry analysts believe that although the "two new" automobiles and purchase tax policies have been adjusted in 2026, they are still important in stimulating the auto market, especially in "hedging" the trend in the opening stage of 2026. "January and February of each year are the off-season in the traditional sense. Coupled with the early digestion of a large number of orders at the end of last year, the overall market pressure in the first quarter of this year is not small. For local governments, enterprises, and dealers, seizing the 'small climax' brought by the Spring Festival has become the top priority in the near future."
The latest "Automobile Consumption Index" released by the China Automobile Dealers Association shows that the automobile consumption index in January 2026 is 31.1. Sales in February are expected to decline compared with January. Affected by the Spring Festival, the market has entered the off-season. "Affected by multiple factors such as the long Spring Festival holiday, early demand overdraft, new energy vehicle purchase tax reduction, and consumers' expectations for post-holiday promotions and new product launches, the automobile market will enter a phased adjustment period in February," the Circulation Association said.