China raises trade-in subsidy threshold and narrows support for low-cost EV makers.

China raised the price threshold to get the full trade-in rebate, requiring a new car price of at least 166,700 yuan for the top 20,000 yuan incentive. The change reduces support for lower-priced EV makers such as BYD, Leapmotor and Geely, Bloomberg reported.

Bloomberg reported that China revised its national vehicle trade-in subsidies for 2026. The new rules set a 12% rebate for eligible electric and hybrid vehicles, capped at 20,000 yuan. To receive the full 20,000 yuan, the new vehicle must be priced at or above 166,700 yuan, according to a Ministry of Commerce document. The move shifts support toward higher-priced models and reduces the level of subsidy available to lower-cost manufacturers. What was announced: - A 12% rebate for eligible electric and hybrid vehicles, capped at 20,000 yuan. - To access the full 20,000 yuan incentive, the new vehicle must have a price of at least 166,700 yuan. - Buyers must scrap a gasoline car or an EV registered before 2019 at an approved dismantling site to qualify. - Replacements with more fuel-efficient petrol models or newer EVs qualify for 6–10% rebates, which are capped at 15,000 yuan. - The higher threshold reduces support for mass-market brands such as BYD, Zhejiang Leapmotor and Geely; BYD's average selling price was about 107,000 yuan in November. - Reports say the tighter criteria may curb earlier misuse of the programme, where some low-cost vehicles were resold as near-new to claim incentives. Summary: The revised subsidy terms are likely to favour higher-priced models and reduce the size of rebates available to lower-cost EV makers, which could weigh on demand for mass-market vehicles. The change comes as purchase tax incentives are being drawn down and after regional subsidy withdrawals that contributed to an 8% fall in November auto sales. Undetermined at this time.