- China expanded its auto trade-in throughput to 5.353 million vehicles Jan–Aug, accelerating to 823k monthly in Jul–Aug as authorities push vehicle turnover and NEV uptake amid sales pressure.
- Key figures show 5.353M trade-ins vs 11.716M passenger-car retail sales (about 46% penetration); NEVs exceeded 60% monthly retail share and subsidies reach RMB 20K (about $2.98K) for scrapped-to-NEV purchases.
- The program targets mainstream passenger-car buyers and used-car churn, but execution risks include sustaining subsidy funding, used-market weakness, and logistical scaling to meet elevated monthly replacement volumes.
China’s auto trade-in program covered 5.353M vehicles from January to August, according to data from the National Development and Reform Commission (NDRC).
The figure stood at 3.707M in the first half of the year, meaning another 1.646M vehicles were added in July and August, averaging 823K per month. That was higher than the first-half monthly average of 618K.
China’s passenger-car retail sales totaled 11.716M units in the first eight months, according to the China Passenger Car Association (CPCA). On this basis, vehicles covered by the trade-in program accounted for around 46% of passenger-car retail sales during the period.
Meanwhile, NEV penetration remained high. NEVs accounted for more than 60% of new passenger-car retail sales for the fifth consecutive month.
China’s 2026 auto trade-in policy also offers higher subsidy caps for NEVs. Consumers who scrap an old vehicle and purchase a new NEV can receive up to RMB 20K ($2.98K), compared with RMB 15K ($2.24K) for a fuel-powered vehicle. For vehicle replacements, the maximum subsidy is RMB 15K for a new NEV and RMB 13K ($1.94K) for a fuel-powered vehicle.
Meanwhile, China’s used-car market remains in a period of adjustment.
Data from the China Automobile Dealers Association showed that used-car transactions totaled 12.7911M units from January to August, down 1.14% YoY. August transactions fell 11.19% YoY to 1.5163M units.
On the funding side, the NDRC and Ministry of Finance recently allocated RMB 62.5B ($9.32B) in ultra-long special treasury bonds for the fourth batch of consumer-goods trade-in subsidies. The full-year allocation of RMB 250B ($37.3B) has now been fully distributed.
From January to August, sales of goods covered by the trade-in program reached RMB 1.55T ($231.2B), with subsidies benefiting 208M people. The program covered 91.458M home appliances, while 108M digital and smart products were purchased under the subsidy scheme.
With the full-year subsidy funds now fully allocated, the auto trade-in program will continue to support consumer demand through the remainder of 2026.
