Interpretation of National Automobile Government Subsidy Policy for 2025

The introduction of the national automobile government subsidy policy for 2025 aligns closely with the “dual carbon” strategic goals. This policy aims to address the challenges posed by external impacts on the industrial supply chain and the unstable foundation of domestic economic recovery. By stimulating demand and transforming supply, it seeks to advance the automotive industry’s shift towards “electrification + intelligence.” The policy is being jointly promoted by multiple departments, including the Ministry of Finance, the Ministry of Industry and Information Technology, and the National Development and Reform Commission. Key documents include the notice from eight departments regarding the “2025 Vehicle Replacement Scheme” (Document No. 2025-8) and the Ministry of Industry and Information Technology’s announcement on the adjustment of fiscal subsidies for the promotion and application of new energy vehicles. The policy sets a target of 15.5 million new energy vehicles sold in 2025, representing a 20% year-on-year increase, and aims for a 6% growth in the automotive manufacturing industry’s value added.

Core Policy Adjustments

The core adjustments of the policy exhibit three major characteristics: increased technical thresholds, precise reduction of subsidies, and enhanced focus on intelligence. These adjustments significantly differentiate it from the policies of 2024:

• Technical Standards Raised: The range threshold for pure electric models has increased from 300 km to 400 km, while the battery energy density requirement has risen from 140 Wh/kg to 160 Wh/kg. This change pressures manufacturers to eliminate low-end production and upgrade core technologies.
• Precise Reduction of Subsidies: Subsidies for plug-in hybrid vehicles have dropped from 10,000 yuan to 8,000 yuan, and the subsidy for pure electric models with a range of 400-500 km has decreased from 18,000 yuan to 15,000 yuan. However, models meeting high technical standards will maintain or see an increase in subsidies.
• Shift to Technical-Driven Subsidies: The subsidy system has transitioned from a “universal subsidy” model to a “technology-driven subsidy” model, forming a dual-track system of “national support + local enhancement.” At the national level, measures like tax exemptions and trade-in subsidies will lower the cost of purchasing vehicles, while local policies will introduce charging subsidies and consumer vouchers based on regional characteristics. The coverage includes trade-ins for National IV fuel vehicles, purchases of new energy passenger vehicles (both pure electric and plug-in hybrid), the upgrading of new energy buses, and battery replacements, thereby supporting a “priority for new energy vehicles and the replacement of traditional vehicles.”

Innovative Highlights

For the first time, the policy incorporates the level of vehicle intelligence into the subsidy assessment. Models equipped with Level 3 autonomous driving capabilities or 800V ultra-fast charging platforms can receive an additional subsidy of 5,000 to 8,000 yuan, promoting a deep integration of “electrification + intelligence” in the industry.

Subsidy Details

The national subsidy standards are based on a “technical grading + model differentiation” logic, primarily categorized by range: the longer the range, the higher the subsidy. The trade-in subsidy is set at 20,000 yuan per new energy vehicle and 15,000 yuan per fuel vehicle, with a maximum of 15,000 yuan for trade-ins of new energy vehicles.

The specific breakdown of purchase subsidies is as follows:

• For trade-in and replacement subsidies, refer to government documents.
• The purchase subsidy tiers are based on industry technical standards.

Technical additive subsidies are additional rewards layered on the base subsidies, contingent on meeting specific technical indicators:

• Models with a battery energy density of ≥220 Wh/kg (e.g., BYD Seal) receive an additional 3,000 yuan.
• Models supporting 5C ultra-fast charging or 800V charging platforms (e.g., XPeng G9) receive an additional 5,000 yuan.
• Battery swap models (e.g., NIO ET5) can have subsidies increased by 15%-30%, not limited by the 300,000 yuan price cap.
• For intelligence, Level 3 autonomous driving vehicles receive an extra 10,000 yuan, while Level 4 vehicles receive 20,000 yuan, enhancing driving safety.
• Models featuring cutting-edge technologies like solid-state batteries or urban NOA maintain original subsidies or receive additional rewards.

Note: Technical additive subsidies must be calculated in conjunction with base subsidies and are not independent. Both base thresholds and technical indicators must be met at the time of purchase.

Regional Policy Variations

The 2025 automobile subsidy policy shows significant regional differences, creating a “national framework + local innovation” system. Policies are categorized based on first-tier cities, key provinces, and rural areas:

• In first-tier cities, policies in Beijing and Shanghai are particularly strong. Trading in an old vehicle for a new energy vehicle can yield a local subsidy of 20,000 yuan, combining with national subsidies for a total of 40,000 yuan. First-time purchasers of new energy vehicles also benefit from exemptions from lottery restrictions and traffic limitations.
• Key provinces like Guangdong implement tiered subsidies, providing an additional 20,000 yuan for trade-ins. In Jiangsu, Taizhou offers 8,000 yuan for vehicles priced over 400,000 yuan, while Suzhou has set June 30, 2025, as the deadline for subsidies.
• Rural areas focus on household registration restrictions, with maximum subsidies of 10,000 yuan for rural residents, and charging rates as low as 0.45 yuan per kWh (30% lower than urban rates). Regions like Shandong and the Chengyu Economic Circle offer additional special subsidies for rural households.

Note: Local policies may have different deadlines. For example, Suzhou’s subsidies are limited to the period from January 1 to June 30, 2025, following a “first-come, first-served” principle. Consumers are advised to check the latest announcements before applying.

Eligibility Requirements

For the 2025 new energy vehicle subsidies, individual consumers are the primary target, with enterprises and specific groups as supplementary applicants. The specific conditions are as follows:

• Consumer Eligibility: Individual consumers must meet one of the following basic qualifications: scrap a gasoline vehicle registered before June 30, 2012, a diesel vehicle registered before June 30, 2014, or a new energy vehicle registered before December 31, 2018; or transfer an old vehicle registered before January 8, 2025.
• For trade-ins, the consumer must provide a “Scrap Vehicle Recycling Certificate” and a “Vehicle Cancellation Certificate” (for scrapped vehicles) or an old vehicle transfer certificate (for transferred vehicles), ensuring that the old and new vehicles are under the same ownership and that the new vehicle is for non-commercial use.
• Special groups may receive additional subsidies, requiring corresponding documentation: rural residents must provide household registration proof, families with multiple children must provide population certificates (limited to purchasing new energy MPVs with over seven seats), and teachers, medical staff, veterans, and ride-hailing drivers must provide occupational identification.
• Vehicle Requirements: New vehicles must be included in the “Recommended Model Directory for the Promotion and Application of New Energy Vehicles,” and some public sector vehicles must also be listed in directories for enjoying vehicle tax exemptions or vehicle purchase tax reductions.
• Time Requirements: The purchase invoice date must fall between January 1 and December 31, 2025. The scrapping or transfer of the old vehicle must occur within the same period, and the new vehicle must be purchased within one year after the old vehicle is disposed of (with some areas extending this to two years).
• Technical Parameter Requirements: Individual consumers can receive a maximum of one scrap update subsidy and one replacement update subsidy per natural year. Each new vehicle can only apply for one type of subsidy.
• Operational vehicles, second-hand vehicles, and public license vehicles are not included in the personal subsidy range.

Application Conditions for Enterprises and Specific Groups

Enterprise applications primarily focus on public sector and group purchases: companies purchasing more than 10 new energy vehicles in a single transaction can apply for group purchase subsidies. Urban bus operating companies must be legally authorized to operate routes, and the vehicles must be old buses registered before December 31, 2017, or new energy buses that exceed their warranty period before the end of 2025 (only for battery replacements).

Public sector vehicles such as logistics and delivery vehicles or tourist buses must meet an annual mileage of ≥30,000 km, while ride-hailing drivers and small business owners must drive their new energy vehicles for 20,000 km within one year. Non-personal users’ purchased new energy vehicles must accumulate 30,000 km before they can apply for subsidies.

Application Process

1. Online Application: Subsidy applications must be submitted through official channels. The 2025 applications are fully online, with a simple and efficient process: Download or log in to the “Dongche Di” app, search for “36260” to enter the government area, choose your region, and submit your identification, bank card, and vehicle information. Once approved, the subsidy will be directly transferred to the consumer’s bank account.
2. Material Submission: Original scanned documents must be uploaded, including the following:
   • Basic materials: ID card, personal bank card (must be a Class I account)
   • Old vehicle documentation: Provide “Scrap Vehicle Recycling Certificate” and “Vehicle Cancellation Certificate” for scrapped vehicles; for transferred vehicles, provide “Transfer Agreement” + transfer receipt and old vehicle registration certificate.
   • New vehicle documentation: Uniform sales invoice, driving permit, and registration certificate.
3. Review and Publicity: The national platform’s review period is 15-20 working days (with the fastest being 7 working days). If rejected, materials must be modified and resubmitted within 3 working days.
4. Funds Transfer: After no objections, the subsidy will be deposited into the applicant’s bank account. Trade-in subsidies typically arrive within three months, while local subsidies can be credited within three working days. National platform-approved trade-in subsidies are directly issued to the applicant’s bank account, with SMS notifications upon receipt.

Important Notes

The policy execution period and connections at the national level: Vehicles purchased before December 31, 2025, can enjoy a full exemption from new energy vehicle purchase tax. From 2026 to 2027, this will be halved (with a maximum exemption of 15,000 yuan). Trade-in subsidies and other incentives will also end by the end of 2025.

At the local level: Subsidy activities in places like Suzhou and Hohhot will end on June 30, 2025, on a first-come, first-served basis. The best time to purchase is before the end of 2025 to maximize national subsidies and purchase tax exemptions, as the incentives will significantly decrease after 2026.

The policy basis is clearly defined, avoiding speculative statements.

Consequences of Violating Application Rules and Consultation Channels

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