China continues scrappage scheme in 2025

China will continue to offer car trade-in subsidies. If consumers swap their old car for a new energy vehicle, they can receive up to 20,000 yuan (about 2,650 euros). The list of eligible cars has been expanded for the current year.

According to Chinese media, the subsidy was previously reserved for people trading in a China 4 emission standard vehicle. Now, it also applies to China 3 emission standard vehicles. Moreover, petrol vehicles must have been registered before 30 June 2012. The cut-off date was previously 30 June 2011. Even older NEVs can qualify if they hit the road before 31 December 2018. Here, the cut-off date in 2024 was 30 April 2018.

Cn EV China reports that, according to Deutsche Bank analyst Wang Bin’s team, BYD will likely benefit the most from the continued trade-in scrappage scheme, followed by Geely and Leapmotor. That is because the subsidy is the same across all price segments, meaning the subsidy-to-price ratio is higher for lower-priced cars.

Overall, the experts expect the subsidy to “drive full-year demand growth of 3 million units in 2025 and support double-digit growth in the second and third quarters.”

China introduced the subsidy in 2024. It initially only offered subsidies of 10,000 yuan, doubling them in July 2024 to boost its effects. More than 6.5 million applications were handed in for the scrappage scheme last year.

cnevpost.com