Policy and Market Double "Shift" - Hidden Currents Surge in the Spring Car Market

In the Year of the Horse, 2026, during the Spring Festival, influenced by consumption policies and seasonal factors, the domestic auto market is primarily focusing on financial policies, with increased efforts to reduce retail inventories during the holiday period.

During the Spring Festival, Caixin reporters visited multiple offline stores, including Leap Motor, Huawei authorized experience stores, Xpeng Motors, and BMW, to observe the market performance of automakers during the holiday.

“During the Spring Festival, we offered a cash discount of 11,000 yuan, and the Leap C11 model can save up to about 40,000 yuan. With combined discounts on the B01, you can drive it home for just over 80,000 yuan,” said a salesperson at Leap Motor Center in Meilan District, Haikou, as they enthusiastically explained to the steady stream of customers. “Our main selling point is cost performance. All models support 5 years of zero interest, with a minimum monthly payment of 483 yuan.”

In a BMW 4S shop in Pudong, Shanghai, staff also repeatedly informed consumers about the recent adjustments to BMW’s sales policies. “On January 1st, BMW China was the first to adjust the suggested retail prices for over 30 models,” said the staff. The BMW 530Li Luxury model, which had a price exceeding 500,000 yuan in 2024, now sells for about 370,000 yuan, a nearly 30% price reduction.

“Although we didn’t launch special promotional policies for the Spring Festival, many consumers still came to inquire about cars. On the morning of the second day, we consecutively received five groups of customers.” Unlike BMW and Leap Motor, Xpeng Motors did not introduce targeted promotions, but all models previously enjoyed a 7-year ultra-low interest financial purchase policy, which still attracted many customers. According to Xpeng sales staff, upcoming new Xpeng models are likely to enjoy this policy as well.

At the entrance of the LeDao (ONVO) brand store in Beijing, the reporter noticed a prominently displayed poster stating “LeDao L90 Purchase Bonus Increase,” highlighting a 7-year 0.49% ultra-low annual interest rate, combined with transparent policies such as zero financial service fees and no penalty for early repayment, reducing the overall cost of buying a car—L90 down payment starting at 35,960 yuan, with a daily payment of 89 yuan. The sales consultant explained that choosing the “rent-to-own” electric mode can further enjoy purchase tax benefits, reducing the tax by an additional 5%, and since the battery is leased, the corresponding part is exempt from purchase tax, saving up to 3,805 yuan.

The reporter observed that, unlike the past when direct official price cuts were common, sales staff now prefer to explain financial plans, service packages, and hidden benefits to customers, guiding them to calculate the “comprehensive value” of their purchase. Moreover, the demographics and needs of car buyers are becoming more diverse. At a dealership in Chaoyang District, Beijing, Mr. Li told the reporter that his old car had been used for a long time, and with a second child on the way, he was considering replacing it with a seven-seat large SUV. “Government subsidies plus dealer discounts can save over 20,000 yuan, which is real money saved for us.”

Unlike Mr. Li’s decisive purchase, some consumers remain cautious. A man who had been browsing at a brand 4S store for some time said he has been paying attention to policy changes and manufacturer promotions since November last year. He has test-driven several models but has yet to finalize a purchase.

On December 30, 2025, the Ministry of Commerce and seven other departments issued the “Implementation Rules for 2026 Car Replacement Subsidies,” which took effect on January 1, 2026. The new policy clarifies two major subsidy models: under the scrapping and replacement mode, consumers purchasing new energy passenger vehicles can receive a subsidy of 12% of the new car price, with a maximum of 20,000 yuan; for gasoline vehicles with a displacement of 2.0 liters or less, the subsidy is 10% of the new car price, up to 15,000 yuan. Under the replacement mode, new energy vehicle buyers can enjoy an 8% subsidy, with a maximum of 15,000 yuan. In response, various regions have actively implemented local car replacement subsidy policies aligned with national guidance. According to incomplete statistics, as of now, Beijing, Shanghai, Tianjin, Chongqing, Xi’an, Guizhou, and other places have announced relevant subsidy policies.

Data from the Ministry of Commerce show that by February 16, 2026, the old-for-new consumer goods replacement had benefited 27.56 million people, driving sales of 193.09 billion yuan. The automotive sector performed particularly well: a total of 607,000 vehicles were replaced, boosting new car sales by 99.56 billion yuan. In January, the average price of new cars participating in the replacement program exceeded 160,000 yuan, a significant increase compared to last year. Meanwhile, the nationwide scrap vehicle recycling volume reached 659,000 units, a year-on-year increase of 50.2%.

“After the holiday, the willingness of new energy vehicle manufacturers to lower prices and promote sales is expected to decline. The weak price elasticity may lead to cautious consumer sentiment, which could temporarily suppress the normal release of purchase demand,” said the China Passenger Car Association regarding the outlook for February. With 16 working days in February—three fewer than the 19 days in February 2025—the effective production and sales time this month is very short. “It can be expected that February’s auto market sales will hit the lowest point of the year, which may help alleviate retail inventory pressure.”

(Source: Caixin)