Beijing renews EV subsidy to spur sales, keeps size of incentive unchanged from 2024

On Wednesday, the National Development and Reform Commission (NDRC) said buyers of electric cars for replacement purposes would receive a 20,000 yuan (US$2,728) cash award this year. Consumers who buy petrol cars fitted with an engine smaller than 2 litres to replace their vehicles would be given 15,000 yuan.

“A renewal of the subsidy has been anticipated by dealers and car buyers,” said Chen Jinzhu, CEO of Shanghai Mingliang Auto Service, a consultancy. “The official announcement came earlier than expected and it would help boost sales in January when [EV] buying interest appears to be low.”

In July, Beijing doubled the trade-in subsidy for EV buyers to 20,000 yuan per vehicle, three months after it rolled out the incentive, but the programme ended on December 31. On Wednesday, China’s Commerce Ministry said 3.7 million buyers took advantage of the trade-in programme in 2024.

China’s 2024 EV sales could jump 38 per cent to 10.68 million units, according to Cui Dongshu, general secretary of the China Passenger Car Association (CPCA).