As the traditional "Golden September & Silver October" auto sales season kicks off, local governments have rolled out a wave of new car purchase subsidies. Provinces and cities including Gansu, Qinghai, Nanjing, Lanzhou and Qingdao have launched incentive programmes one after another, with the maximum subsidy reaching RMB 12,000 per vehicle. Automakers are also ramping up promotions: more than 30 brands have released September deals covering over 100 models.

Discount posts flood sales consultants’ social media feeds, leaving many buyers wondering: Is now the perfect time to buy a car at a bargain? Will these hefty subsidies trigger a market boom?

One key truth to bear in mind: subsidies act only as a market catalyst, not an engine for growth. They encourage prospective buyers to place orders earlier but can hardly convince people with no purchase plans to buy a vehicle. This year’s Golden September is defined by stock-market competition. New energy vehicles (NEVs) continue to capture market share from gasoline cars. Joint support from local fiscal funds and manufacturer discounts is propping up the auto sector. This article neither hypes subsidies nor talks down the market. It sorts out regional subsidy rules, explains the real link between subsidies and auto sales, and highlights common pitfalls for buyers. While saving money matters, do not fall for marketing slogans featuring the phrase "maximum subsidy".

01 Regional Subsidy Overview: Real Financial Support from Local Governments

Gansu Gansu has allocated a special consumption fund of RMB 6 million. The programme runs from 23 September to 7 October for individual buyers purchasing brand-new non-commercial passenger vehicles with up to 9 seats. Both gasoline and NEVs qualify. Two subsidy tiers apply: RMB 2,000 per car for invoices (tax-inclusive) at or below RMB 100,000; RMB 3,000 per car for invoices above RMB 100,000. Provincial subsidies can be stacked with municipal and district-level incentives within Gansu, but cannot be claimed together with scrappage or replacement subsidies. Each person is eligible for only one subsidy per year.

Qinghai Qinghai has launched a provincial new-vehicle purchase subsidy for both gasoline and electric cars, capped at RMB 5,000.

• RMB 3,000 subsidy for vehicles priced from RMB 50,000 (inclusive) to RMB 100,000 (exclusive)
• RMB 4,000 subsidy for vehicles priced from RMB 100,000 (inclusive) to RMB 200,000 (exclusive)
• RMB 5,000 subsidy for vehicles priced at or above RMB 200,000

Invoices and vehicle registration documents must be issued on or after 1 July 2026. Each individual can claim the subsidy only once in 2026, and it cannot be combined with national scrappage or replacement subsidies.

Nanjing Nanjing’s second round of auto consumption incentives is valid from 16 September to 31 December 2026. Individual buyers at designated merchants receive subsidies proportional to vehicle prices: for NEVs priced RMB 50,000 and above, the subsidy equals 3% of the price, capped at RMB 7,000; for gasoline cars priced RMB 50,000 and above, the subsidy equals 2% of the price, capped at RMB 6,000.

Yuhuatai District in Nanjing has introduced an extra RMB 1 million second-hand car subsidy fund on a first-come, first-served basis:

• RMB 1,000 for used cars below RMB 200,000
• RMB 3,000 for used cars from RMB 200,000 (inclusive) to RMB 400,000 (exclusive)
• RMB 5,000 for used cars from RMB 400,000 (inclusive) to RMB 1,000,000 (exclusive)
• RMB 10,000 for used cars at or above RMB 1,000,000

This district-level second-hand car subsidy is designed to boost vehicle replacement activities.

Lanzhou Lanzhou adopts a stacked provincial and municipal subsidy scheme starting on 23 September for the Mid-Autumn and National Holiday season:

• Combined subsidy of RMB 3,200 for invoices between RMB 100,000 and RMB 150,000 (inclusive)
• Combined subsidy of RMB 3,400 for invoices between RMB 150,000 and RMB 200,000 (inclusive)
• Combined subsidy of RMB 3,600 for invoices above RMB 200,000

While the amounts are not the highest, the qualification thresholds are straightforward.

Qingdao Qingdao offers the most generous package in this round of local subsidies. NEVs qualify for a 4% subsidy based on the total tax-inclusive invoice value, up to RMB 12,000 per unit. Gasoline cars receive a 3% subsidy capped at RMB 10,000. For a NEV priced above RMB 200,000, this incentive delivers tangible savings instead of a token discount.

Alongside government subsidies, automakers are launching promotions. Over 30 brands have unveiled September offers covering more than 100 models. Promotions mainly fall into four categories: direct cash discounts, trade-in allowances, financing packages and optional benefit bundles. These incentives vary greatly in real value. Direct cash rebates are the most straightforward; trade-in subsidies involve complicated paperwork; financing benefits may tie buyers to loans; and equipment packages are only valuable if buyers actually need the extra features.

To distinguish the two: local subsidies are funded by governments, while manufacturer promotions are commercial discounts. Stacking both can reduce total costs, but the final saving depends on buyer location, vehicle model, invoicing date, registration date and subsidy application timeline.

02 Rising Subsidies, Yet Underwhelming Market Performance

Despite noisy subsidy campaigns, the auto market has not seen an explosive rebound.

China Passenger Car Association (CPCA) data shows that between 1–20 September, wholesale volumes of passenger vehicles reached 1.001 million units, down 19% year-on-year and up 21% month-on-month. Cumulative wholesale volume for the year stood at 18.184 million units, a 6% year-on-year decline.

Retail sales hit 878,000 units over the same period, dropping 22% year-on-year while rising 8% month-on-year. Total retail sales year-to-date were 12.593 million units, down 21% year-on-year. Retail sales fell sharply by one-fifth year-on-year, far below expectations for the traditional Golden September.

The NEV segment also failed to deliver as strongly as predicted. From 1 to 20 September, NEV wholesale volumes reached 740,000 units, up 8% year-on-year and 25% month-on-month. Year-to-date NEV wholesale totalled 10.518 million units, rising 9% year-on-year. NEV retail sales were 596,000 units, a 9% year-on-year drop and 14% month-on-month increase. Cumulative NEV retail volume was 7.27 million units, down 12% year-on-year.

A critical observation: NEV wholesale numbers grow, but retail sales fell 9% year-on-year. The gap between wholesale and retail is partly driven by exports rather than channel inventory build-up. Between 1–20 September, NEVs accounted for 67.9% of retail penetration and 73.9% of wholesale penetration. Two out of every three vehicles sold to end consumers are new energy models, and gasoline vehicles are steadily losing market share.

Production figures paint an even grimmer picture. In the first three weeks of September, output of pure gasoline light vehicles totalled 330,000 units, plummeting 52% year-on-year and rising 47% month-on-month. Production of hybrid and plug-in hybrid vehicles reached 265,000 units, down 23% year-on-year and up 21% month-on-month. Wholesale volumes of gasoline vehicles halved year-on-year.

Why does the market still slide despite higher subsidies?

1. High comparison base last year. In September 2025, a rush of purchases occurred before subsidies expired in many regions, pushing retail sales to a periodic peak. This year’s year-on-year figures look poor because they are measured against this exceptionally high benchmark. It does not mean the market is extremely weak this year.
2. Higher oil prices curb gasoline car demand. Since late July, gasoline prices have risen by more than RMB 830 per tonne this year. Coupled with improved new NEV products, consumer appetite for gasoline cars keeps shrinking. Previously, Golden September unlocked both first-time and replacement purchases, benefiting gasoline and electric cars alike. Today’s market is a zero-sum stock game; new demand mainly flows to NEVs, with no fresh demand for gasoline vehicles.
3. Dealers remain under heavy pressure. Falling raw material prices have boosted upstream profits, but price pressure has shifted downstream to vehicle OEMs. Low inventory does not mean dealerships are thriving, and their operating burdens keep mounting.
4. Fierce competition within the NEV sector. Most new NEVs launched in September are large models, facing intense stock competition. Few brands have hit bestsellers, yet manufacturers must maintain production schedules to meet sales targets. Even without backlogged customer orders, brands push deliveries to fulfil volume goals, inflating NEV wholesale penetration.

Simply put, strong wholesale data does not reflect genuine end-user demand. Some sales volumes are generated to meet corporate targets.

Subsidies do not automatically trigger sales surges. They serve as market stabilisers and catalysts, accelerating purchases from ready buyers instead of creating mass new demand. Subsidies change purchase timing, but cannot reverse long-term market trends. This year’s Golden September & Silver October is characterised by stock competition, NEVs eroding gasoline car share, and joint government-OEM efforts to stabilise the market.

03 Three Common Pitfalls with Car Subsidies

Larger subsidies call for greater caution. Total vehicle costs cannot be judged solely by the "maximum subsidy" headline number.

Pitfall 1: Do not confuse government subsidies with manufacturer promotions Local fiscal subsidies, national vehicle scrappage incentives, dealer cash discounts, trade-in allowances and financing packages all follow separate rules. Many regions explicitly ban overlapping claims for scrappage and replacement subsidies.

When sales representatives quote "comprehensive discounts", break down each item: which rebates apply at checkout, which require separate application and official review, which are tied to loans, and which only represent the advertised maximum amount. Buyers may expect to save RMB 20,000, yet only get RMB 5,000 in real savings while taking out a multi-year loan.

Pitfall 2: The promotion window ≠ subsidy application deadline Separate deadlines may apply to vehicle purchase, invoicing, registration and document submission. Even if the promotion is still running, subsidy funds may run out early. Gansu’s rules state that subsidies are limited by total budget, allocated on a first-come, first-served basis and stop once funds are exhausted.

Paying a deposit does not lock in subsidy eligibility. A deposit only reserves the vehicle. Buyers can fail to receive subsidies if the model, invoice price or vehicle category fails requirements, or if paperwork misses deadlines or fails audit. Any disqualification means forfeiting the incentive.

Pitfall 3: "Maximum subsidy" comes with strict conditions Headline figures such as Qingdao’s RMB 12,000 top NEV subsidy or Nanjing’s RMB 7,000 cap look attractive, yet the highest tiers usually require higher vehicle prices, designated models or minimum invoice values.

Calculate full costs including vehicle price, purchase tax, insurance, optional extras and loan interest, and compare total outlay after subsidies. Do not overspend on a more expensive car just to qualify for a higher subsidy tier — that is letting the promotion take advantage of you.

Practical Advice for Car Buyers

1. Confirm your needs and budget first. If you are already planning to buy, study these subsidy policies carefully. If you only feel tempted by discounts without a real need, avoid impulsive purchases.
2. Verify eligibility. Read official announcements and application portals to confirm procedures and remaining subsidy quotas. Do not rely only on verbal promises from sales staff.
3. Shop around. Final landing prices for the same model can vary widely between dealers, financing schemes and trade-in terms. Compare multiple quotes before deciding.
4. Calculate the full bill. Subsidies reduce the cost but are not the whole story. Include purchase tax, insurance, add-ons and loan interest in your total budget assessment.

Buyers with genuine needs may take advantage of available subsidies. Those without urgent demand should refrain from rushed purchases.

This round of incentives acts as a booster shot for the auto market, jointly funded by local governments and automakers. It delivers real savings for genuine buyers. For the wider industry, however, subsidies can only shore up the market, not reverse its trajectory. Golden September may not live up to its historic reputation, and Silver October is also uncertain. The fundamental drivers of the auto market are not subsidy amounts, but household disposable income and consumer confidence.