Komodo
News Center
22
2026
-
04
China Tightens Fuel Consumption Rules by Up to 48%, Adds EVs to Export Licensing, and Extends Auto Subsidies Through 2026
1. Stricter Fuel Economy Standards
Fuel consumption limits for conventional and hybrid passenger cars are tightened by approximately 18%.
For the 2026–2030 period, corporate average fuel consumption (CAFC) targets are tightened by a total of 48%. For the first time, electricity consumption of battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) is included in the accounting system.
By 2030, the corporate average fuel consumption target is set at 3.3 liters per 100 kilometers, bringing China to an internationally leading level of fuel economy.
Light commercial vehicles are now subject to corporate average fuel consumption targets for the first time, with limits tightened by 10%.
2. Export Licensing and Tax Policy Updates
As of January 1, 2026, battery electric passenger vehicles are officially included under the export licensing regime, jointly administered by four central government ministries to regulate NEV exports and promote high-quality trade.
Vehicle and vessel tax have been revised: new applications must meet updated technical standards, and existing models that no longer comply must be rectified and re‑approved within a set timeframe.
3. Consumer Subsidies Extended and Unified Nationwide
The national vehicle scrappage and trade‑in subsidy program continues through 2026, with uniform standards across all regions.
Scrappage:
Purchasing a new energy vehicle (NEV): 12% of vehicle price, up to RMB 20,000
Purchasing a conventional fuel vehicle: 10% of vehicle price, up to RMB 15,000
Trade‑in (replacement without scrappage):
NEV: 8% of vehicle price, up to RMB 15,000
Fuel vehicle: 6% of vehicle price, up to RMB 13,000
Subsidies also continue for scrapping old commercial trucks, new energy city buses, and power batteries, with priority given to electric alternatives.
4. Long‑Term Industrial Mechanisms
The “vehicle‑road‑cloud integration” pilot for intelligent connected vehicles continues in 20 cities, aiming to establish a unified technical standard framework by 2026.
L3 autonomous driving access and on‑road pilot programs have entered the practical implementation phase, with several automakers receiving conditional approval. Higher‑level autonomous driving functions will be extended to more complex scenarios in 2026.
Nine government departments have jointly issued a green consumption action plan, supporting NEV purchases and promoting used cars, leasing, modification, car‑sharing, and other aftermarket segments. Supporting mechanisms such as green consumption points, reverse logistics, and green credit are also being explored.
Overall Policy Direction:
The 2026 automotive policies continue the theme of “seeking progress while maintaining stability, improving quality and efficiency.” On the demand side, trade‑in subsidies are strengthened and unified nationwide. On the supply side, tighter fuel efficiency standards push automakers to accelerate technology upgrades. On the institutional side, export licensing, dynamic tax adjustments, and intelligent vehicle access rules are becoming more mature, providing stable expectations for high‑quality industry development in the first year of the 15th Five‑Year Plan (2026–2030).
NEWS INFORMATION
Contact Us
ADD: 18-6, No. 8, West Taishan Avenue, Liangjiang New Area, Chongqing,China.
