[SMM Analysis] A Brief Overview of the New Requirements for the 2025 Trade-In Policy

SMM February 13 News: Recently, to ensure the smooth implementation of the 2025 trade-in policy for automobiles and facilitate consumers in applying for subsidies, in accordance with the "Notice on the Implementation of the 2025 Trade-In Policy for Automobiles" (Commerce Office Consumption Letter [2025] No. 8, hereinafter referred to as the "Notice") issued by the General Office of the Ministry of Commerce and seven other departments, the purpose of this revision is to further promote equipment renewal, expand the scope of trade-in support for consumer goods, and accelerate the improvement of recycling and comprehensive utilisation levels. The main highlights are as follows:

1. Expansion of the scope of scrapped vehicles: The scope has been expanded from passenger vehicles meeting National III and below emission standards to include eligible passenger vehicles meeting National IV emission standards. Additionally, the registration date for passenger NEVs has been extended from before April 30, 2018, to before December 31, 2018.

2. Adjustment of the ownership duration requirement for old vehicles: To apply for the vehicle scrappage and renewal subsidy, the corresponding scrapped motor vehicle must have been registered under the applicant's name before January 8, 2025.

3. Improvement of the subsidy standards for vehicle replacement and renewal: For individual consumers transferring passenger vehicles registered under their names and purchasing passenger NEVs, the maximum subsidy per vehicle will not exceed 15,000 yuan. For purchasing fuel-powered passenger vehicles, the maximum subsidy per vehicle will not exceed 13,000 yuan.

4. Implementation period for vehicle replacement and renewal: The implementation period will start from January 1, 2025. Specific subsidy application requirements will be subject to local policies.

Other aspects, such as the conditions for purchasing new vehicles under the 2025 vehicle scrappage and renewal policy, the subsidy standards for vehicle scrappage and renewal, and the requirements for applying for vehicle scrappage and renewal subsidies, remain largely unchanged. Overall, the new regulatory conditions provide more detailed and specific guidance and standards for the comprehensive utilisation of waste power batteries from NEVs, contributing to the healthy development of the industry.

In summary, the new regulatory conditions further improve the guidance and standards for the comprehensive utilisation of waste power batteries from NEVs, helping to strengthen organisational implementation, fully leverage the role of standards in driving improvements, and accelerate the enhancement of recycling and comprehensive utilisation levels.

SMM New Energy Research Team

Cong Wang 021-51666838

Rui Ma 021-51595780

Disheng Feng 021-51666714

Ying Xu 021-51666707

Yanlin Lü 021-20707875

Yujun Liu 021-20707895

Xiaodan Yu 021-20707870

Zhicheng Zhou 021-51666711

He Zhang 021-20707850