What is the current national subsidy for car purchases?
2 Answers
There are no subsidies for fuel-powered vehicles in China, while subsidies for new energy vehicles are being reduced. No subsidies for fuel-powered vehicles: Generally, fuel-powered vehicles can hardly receive government subsidies in principle, as the current trend is to develop new energy vehicles. Many countries have already announced phase-out schedules for fuel-powered vehicles, and it is expected that China will gradually phase out fuel-powered vehicles within the next 20 years. Reduction in new energy vehicle subsidies: In 2021, the subsidy standard for new energy vehicles was reduced by 20% compared to 2020. Pure electric passenger vehicles with a range of less than 300 kilometers receive no subsidy, while those with a range of 300-400 kilometers (including 300 kilometers) see a reduction in subsidies. Vehicles with a range of 400 kilometers or more (including 400 kilometers) also experience a subsidy reduction. To encourage the development of the new "battery swapping" business model and accelerate the promotion of new energy vehicles, vehicles using the battery swapping mode are not affected by this regulation.
When I was considering buying a new car, I specifically looked into the national subsidies. Starting from 2023, direct national subsidies for individual car purchases have basically disappeared, especially for new energy vehicles. In the past, pure electric or plug-in hybrid vehicles could receive up to over 10,000 yuan, but now it's mainly local governments offering some discounts. I did the math—the new policy has shifted its focus to tax reductions and supporting enterprises. For example, purchasing a pure electric vehicle might exempt you from the purchase tax, saving you a few thousand yuan. If you're still hoping to secure a subsidy, first confirm that the car must be new, meet the China VI emission standards, and have sufficient range—models with over 500 kilometers have better chances. I recommend checking the latest regulations on the Ministry of Industry and Information Technology's official website or your local government platform, as subsidy policies vary by region—cities like Shenzhen and Shanghai might still offer additional thousands. Before buying, visit multiple dealerships to inquire, and don’t just focus on subsidies—compare them alongside promotional prices.
