GreenergyDaily

Jun. 18, 2025

At least six cities and municipalities across China have suspended trade-in subsidies for car buyers in June, according to Reuters’ review of government announcements, which could slow new car sales in the world's second-biggest economy.

Notices from governments in Zhengzhou and Luoyang blamed the subsidy pause on the first round of funding allocated by Beijing for the programme running out, while Shenyang and Chongqing said the suspension was due to adjustments to improve capital efficiency.

The northwestern region of Xinjiang issued a similar suspension.

While there has been no official announcement about when more funds from the central government will be released for programmes, China's National Development and Reform Commission and Ministry of Finance have said the subsidies would continue throughout 2025, leading analysts to expect new funds for the third quarter to be made available from July.

Official media in China's Henan province, where Zhengzhou is the capital, last week reported, citing unnamed sources, that China's central government had taken note of some loopholes in the subsidy schemes and would look to make adjustments.

The report in Henan government-owned newspaper Dahe Daily added that sales of “zero-mileage used cars” were one of the key factors leading to subsidies being used up ahead of expectations, necessitating the suspensions.