Automobile Trade-In Subsidy Paused in Multiple Regions Amid Policy Adjustments

Automobile Trade-in Subsidies Pause in Multiple Regions

As of September 30, 2025, several provinces and cities, including Jiangsu, Ningbo, Guangxi, and Hangzhou, have announced the suspension of automobile trade-in subsidies or the optimization of application rules. This policy adjustment is a response to the unexpected exhaustion of subsidy funds, coupled with a need for market regulation, which is causing a temporary impact on the automotive consumer market.

On September 30, the Hangzhou Municipal Bureau of Commerce released an announcement regarding further adjustments to the 2025 automobile trade-in policy. It stated that starting from 0:00 on October 9, 2025, the automobile trade-in subsidy policy will be suspended within the city. Consumers eligible for the subsidy must submit their applications and upload the required documentation via the official “Zhejiang Province Automobile Trade-in” mini-program before 0:00 on November 9, 2025. Any materials not submitted by the deadline will be considered an automatic forfeiture of the subsidy eligibility.

Furthermore, the automobile scrapping and trade-in subsidy policy will also be optimized starting from the same date. Consumers applying for the scrapping subsidy in Hangzhou must ensure that both the registration location of the scrapped vehicle and the registration location of the new vehicle purchased are within Hangzhou. The subsidy standards, application processes, and other requirements will continue to follow the existing policy.

On the evening of September 27, Jiangsu Province issued an announcement adjusting its 2025 automobile trade-in policy, stating that as of 24:00 on September 28, 2025, the province’s trade-in subsidy policy will be officially suspended. Consumers who obtained new vehicle invoices before September 28 must submit their application materials by October 20, 2025. The window for correcting materials has been extended to October 31, and the scrapping subsidy will shift to a “qualifying before applying” model.

Earlier, on September 23, Guangxi Zhuang Autonomous Region terminated its subsidy activities, restricting the validity of invoices to those issued between January 1 and September 23, and requiring that driving licenses be valid before September 30. Rizhao City has suspended its trade-in review system since September 17, while Ningbo plans to pause all subsidy applications from October 11.

Currently, some provinces and cities are choosing to optimize rules rather than implement a complete suspension. For instance, Hubei Province introduced a daily coupon distribution mechanism at the beginning of September, opening eligibility application channels at 10 AM, with a first-come, first-served approach. Tianjin began a monthly balanced distribution mode on September 5 to prevent concentrated depletion of funds. Several regions in Shandong Province have tightened their policies significantly; Jinan announced the termination of trade-in activities starting October 1, while Weihai and Dongying stopped accepting new applications on September 23. Jining required that from September 19, scrapping and trade-in must first acquire a qualification coupon.

In August, multiple regions, including Qinghai, Guizhou, and Inner Mongolia, also announced the suspension of trade-in subsidies.

This series of policy adjustments stems from three main considerations. Firstly, from a financial standpoint, many regions have exceeded expected subsidy expenditures. In Jiangsu Province, the consumption upgrade subsidy surpassed 10 billion yuan in the first half of the year, and many areas face risks of exceeding fiscal payments. Secondly, the policy approach is shifting from broad-based promotion to precise regulation, enhancing the efficiency of fund usage through mechanisms like qualification applications and monthly distributions. Thirdly, as the internal power of the automotive market strengthens, the focus of policies is gradually shifting toward the scrapping and replacement of older vehicles.

According to official documents, two batches of central funding totaling 162 billion yuan were allocated in January and April this year to support local trade-in efforts for the first and second quarters. The third batch of 69 billion yuan in long-term special government bond funding to support trade-ins has been fully allocated. In October, the fourth batch of 69 billion yuan is scheduled for distribution, completing the annual target of 300 billion yuan.

These adjustments do not signify a withdrawal from policies but rather a dynamic optimization in response to market changes. In line with the national policy framework released by the Ministry of Commerce and eight other departments at the beginning of the year, regions are refining their regulations to ensure the orderly and balanced use of funds until the end of the year. As policies adjust, some consumers may expedite the registration process to meet application deadlines. For the industry, while there may be short-term fluctuations in sales, the long-term optimization of scrapping subsidies will help accelerate the elimination of older vehicles and support the promotion and long-term development of new energy vehicles.