New Subsidy Policy for New Energy Vehicles in 2026: Higher Incentives for Models Above 300,000 and Stricter Standards for Hybrids

The new subsidy policy for new energy vehicles (NEVs) in 2026 has officially been announced. Unlike previous years, this policy focuses on “precise screening and technology orientation.” It combines a halved purchase tax with a trade-in subsidy model to guide car manufacturers towards technological upgrades while providing consumers with clear purchasing directives. This new policy will take effect on January 1, 2026, and remain active until December 31, 2027, generating significant interest in the market.

Key Changes in the Subsidy: The approach has shifted from “universal” to “precise,” with the calculation rules being crucial. This subsidy is not a traditional cash rebate; instead, it utilizes a combination of “half purchase tax + trade-in” with a maximum subsidy of 15,000 yuan for each component, resulting in a total cap of 30,000 yuan per vehicle. One common misunderstanding is that vehicles priced above 300,000 yuan receive higher subsidies; in reality, the calculation rule creates this difference: Subsidy Amount = Vehicle Price (excluding tax) × 5%. Thus, vehicles priced at 300,000 yuan (excluding tax) become the threshold for maximum subsidies. Here are examples of subsidy calculations for different price ranges:

• 150,000 yuan (excluding tax): 150,000 × 5% = 7,500 yuan
• 250,000 yuan (excluding tax): 250,000 × 5% = 12,500 yuan
• 300,000 yuan (excluding tax): 300,000 × 5% = 15,000 yuan (maximum)
• 400,000 yuan (excluding tax): still capped at 15,000 yuan

Conclusion: Vehicles priced above 300,000 yuan do not necessarily receive higher subsidies; they merely meet the policy’s upper limit. In contrast, vehicles below 300,000 yuan will see a proportional decrease in subsidies, prompting consumers to choose wisely based on their budget.

Criteria Adjustments: The technical requirements for hybrid vehicles have doubled, while pure electric and hydrogen fuel cell vehicles have specific focuses. The new policy sets differentiated technical thresholds for various energy types, encouraging the industry to move towards energy efficiency:

• Hybrid Vehicles (including plug-in and extended-range): The pure electric range requirement has jumped from 43 km (NEDC standard) to 100 km (WLTC standard), and a new requirement for fuel consumption when the battery is depleted has been introduced. Vehicles with a curb weight below 2,510 kg must consume less than 70% of the national standard, while those at or above 2,510 kg must consume less than 75%. As a result, many older hybrid models with short ranges will fall outside the subsidy scope.
• Pure Electric Vehicles: Although there is no explicit lower limit for range, new energy consumption standards will come into effect (specific values referenced in GB/T 18386-2025). Industry trends suggest that vehicles with a range exceeding 500 km will become the mainstream targets for subsidies, while lower-range models will gradually be excluded from the subsidy program.
• Hydrogen Fuel Cell Vehicles: The subsidy for these vehicles has increased by 30%, focusing on the commercial vehicle sector (logistics vehicles, buses, etc.). According to the latest standards, each hydrogen fuel cell commercial vehicle can receive up to 200,000 yuan in purchase subsidies, facilitating the green transformation of the logistics industry.

Subsidy Rights Comparison for Four Vehicle Types:

Four Key Points to Avoid Pitfalls:

1. Unclear Invoice Dates: Subsidies are based on the invoice date (January 1, 2026 – December 31, 2026). If ordering a vehicle at the end of 2025, the contract should clearly state, “The invoice date will be after X month of 2026,” to prevent dealerships from issuing invoices prematurely and jeopardizing the subsidy.
2. Old Vehicle Qualification Issues: The trade-in subsidy requires the old vehicle to be registered for over one year (registered before January 8, 2025), must be legally scrapped or transferred (private transactions are invalid), and the information of the new and old vehicle owners must match.
3. Misleading “Full Subsidy” Claims: Salespeople often exaggerate subsidy amounts; in reality, only vehicles above 300,000 yuan can receive the full 15,000 yuan purchase tax subsidy, while vehicles around 200,000 yuan typically receive about 10,000 yuan. Consumers should calculate subsidies based on the given formula.
4. Late Applications Resulting in Penalties: The purchase tax must be declared within 60 days of the invoice date, and new vehicles must be registered within six months (by December 31, 2026 at the latest). Late submissions will incur a daily penalty of 0.05%.

Subsidy Application Guide: There are both online and offline channels for application. Required materials include an ID, a bank card with the same name, a new vehicle invoice, and a registration certificate. For trade-ins, additional documentation for the old vehicle’s scrapping or transfer and driving license is necessary. Corporate users must provide a business license.

Application Channels:

• Online (Recommended): Use the Dongchedi APP to search for “39265” and access the subsidy section, or log in to the electronic tax bureau to upload materials for direct subsidy transfers (the purchase tax will be deducted at the time of payment, while the trade-in subsidy will arrive within 20-30 working days).
• Offline: Bring the necessary materials to the government service hall tax window, suitable for users unfamiliar with online operations.

Local Enhancements: Certain regions are offering even greater subsidy incentives. In addition to national subsidies, some provinces have introduced local support policies. For example:

• Jiangsu: The renewal subsidies are tiered, with vehicles priced between 300,000 and 400,000 yuan receiving 9,000 yuan, and those above 400,000 yuan receiving 10,000 yuan, with applicants able to choose the higher of national or local subsidies.
• Some New First-Tier Cities: First-time buyers of new energy vehicles can receive a subsidy of 6% of the vehicle price (up to 40,000 yuan for vehicles above 300,000 yuan), but it is important to note that this cannot be combined with national subsidies.

Industry experts believe that this new policy, through its technical thresholds and optimized subsidy structure, will accelerate the transformation of the NEV market towards “high-quality development.” Consumers should pay close attention to core parameters such as range and fuel consumption when purchasing, and plan the replacement process in advance to fully benefit from the policy. It is advisable to confirm the latest local policies through the 12366 tax hotline or local government websites before making a purchase to avoid missing out on benefits.