Overview
- Owners scrapping an old car for a qualifying NEV can receive up to 12% of the vehicle price, capped at 20,000 yuan, while trade-ins without scrappage qualify for 8%.
- China’s nationwide EV purchase-tax waiver expires on December 31, with a reduced 5% rate starting January 1 and a 50% reduction available through 2027, excluding premium models.
- US-listed shares of Chinese EV makers climbed after the notice, with Nio up more than 6%, XPeng up about 6%, and Li Auto higher by roughly 1% in morning trading.
- Some manufacturers, including Xiaomi and Nio, say they will cover the reinstated purchase tax for customers from January 1 to keep orders and deliveries on track.
- Earlier suspensions of local trade-in programs over funding shortfalls and misuse, alongside year-on-year retail sales declines in October and November, leave the policy’s demand impact uncertain.