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The electromobile industry has become a focus point once again as China comes to the rescue to encourage and boost domestic demand. The country’s leading planning authority for economic matters, the National Development and Reform Commission, has proposed a trade-in subsidy program of RMB 62.5 billion ($8.9 billion) for 2026. The program will be funded through ultra-long-term special treasury bonds, and this will mitigate challenges posed by a weak China’s housing market and deflation.
This comes on the back of a very aggressive expansion in the year 2025, with consumer subsidies more than doubling on a year-over-year basis to a total of about $42.8 billion to encourage the sales of cars, smartphones, and home appliances.
