Multiple subsidies in action! New trends in the Spring Festival car market in the Year of the Horse. 100,000-level new energy vehicles become the main force of county-level consumption

Buying a new energy vehicle, going home for the New Year, visiting relatives and friends, has become the new holiday norm for residents in many counties and towns across China during the 2026 Year of the Horse Spring Festival. Shanghai Securities News reporters found that under the stimulation of multiple subsidy policies, the automotive market in some domestic regions remains steady, and replacing old cars with new energy vehicles is becoming an important growth engine.

Industry experts told reporters that China’s county, township, and small city car markets are nurturing huge consumer potential and are expected to strongly promote the overall development of the domestic auto market.

National Subsidies + Local Subsidies + Manufacturer Subsidies Combine for Strong Support

10,000-Yuan Level New Energy Vehicles Become Mainstream in County Markets

On February 17th, Lunar New Year’s Day, the flow of customers at BYD Xinshidi 4S store in Yingshang County, Fuyang City, Anhui Province, was continuous. Citizen Feng Li was comparing several models, planning to trade in his old fuel vehicle for a new energy vehicle. “With national subsidies and manufacturer discounts, the price is quite affordable, and there are many models to choose from,” he told Shanghai Securities News.

Biliang Shun, the store manager, explained that replacing old cars is becoming an important growth driver in the county market. “Since January 2026, a total of 22 new cars have been sold, with about 60-70% of customers purchasing through trade-in.” Biliang Shun said the main groups of replacement buyers are: owners of old fuel vehicles upgrading due to stricter emission standards and higher maintenance costs; and owners who bought their first new energy vehicles around 2018, due to battery degradation and reduced range.

During the Spring Festival, citizens are shopping for cars at XPeng Fuyang Chaoyang Avenue Store.

“To address customers’ concerns about disposing of old cars, the 4S store offers full-process services such as valuation assessment and transfer agency, lowering the threshold for trade-ins,” Biliang Shun introduced. Currently, the main models sold in the store are in the 100,000 to 150,000 yuan range, offering both pure electric and hybrid versions. “Considering county consumers’ demand for range, hybrid versions are more popular.”

“Multiple subsidy policies are stimulating market potential,” Biliang Shun said. Currently, buyers can choose between scrapping and replacing subsidies: vehicles eligible for scrapping can enjoy a 12% subsidy off the invoice price, while regular trade-ins get 8%. Additionally, local subsidies of 4,000 yuan and manufacturer discounts of about 3,000 yuan can be stacked, making the overall discount quite attractive. He specifically mentioned that local subsidies are quota-based and limited, which encourages many cautious customers to make quicker decisions.

From a consumer structure perspective, the county market shows clear pragmatic features. Biliang Shun said that customers with a budget over 200,000 yuan tend to have longer decision cycles, while those in the 100,000 to 150,000 yuan range have clearer goals and higher transaction efficiency. This price range mainly meets the mainstream needs of first-time or upgrading purchases for county families.

During the Spring Festival, citizens are shopping for cars at XPeng Fuyang Chaoyang Avenue Store.

Unlike the steady performance of county dealerships, car consumption in Fuyang city during the Spring Festival shows seasonal fluctuations. Sun Liangdong, head of XPeng Fuyang, told Shanghai Securities News that from January to February this year, sales of traditional fuel vehicles surpassed new energy vehicles, mainly due to the release of urgent needs from returning hometown customers. “These consumers mostly buy traditional fuel vehicles in the 100,000 to 150,000 yuan range, with short decision cycles and clear goals. New energy brand customers often complete their purchases at their work locations in advance and place fewer orders when returning home.”

“Consumption characteristics also vary across different regions in the county market,” Sun Liangdong analyzed, citing Taihe County under Fuyang as an example. The local population working outside the area is relatively high, and the proportion of returning car buyers is lower. Some brands’ township sales networks have been adjusted or optimized over time. Sun believes this is related to Fuyang’s demographic structure as a labor-export region—out-migrant workers are the main car buyers, making decisions mainly at their workplaces or city stores when returning home. Local residents’ willingness to buy cars is relatively limited, leading to differentiated performance across counties.

Sales Growth Far Exceeds Industry Average

Rural Vehicle Ownership per Thousand People Expected to Significantly Increase

Industry experts told reporters that the Fuyang Spring Festival county car market is a microcosm of China’s current county and township car markets, where both new energy vehicles and fuel vehicles have significant growth potential in rural areas.

In the 2026 Year of the Horse Spring Festival Gala, the “Fuk” character pattern was formed by the collaboration between Seres and Huawei’s new energy vehicle brand, Wenjie.

The 2026 Central No. 1 Document proposed supporting the rural areas with new energy vehicles, smart home appliances, and green building materials, and improving the recycling system for waste household appliances and furniture.

According to the China Association of Automobile Manufacturers, from 2020 to 2025, the annual sales of new energy vehicles in rural areas increased from 397,000 to 9.431 million units, with an average annual growth rate far exceeding the industry average. Its share of total new energy vehicle sales nationwide has also continued to rise.

In terms of expanding models, the catalog has been continuously enriched: in 2025, 124 recommended models were listed, doubling from 61 in 2020, covering sedans, SUVs, pickups, light trucks, and other categories, forming a diversified supply system of passenger, commercial, and agricultural vehicles.

Data from the China Electric Vehicle Charging Infrastructure Promotion Alliance shows that by the end of December 2025, the number of charging facilities in China exceeded 20 million, making it the largest electric vehicle charging network in the world. Among these, public charging piles below county level account for 13% of the total, and dedicated charging piles account for 10%. Compared to 2020, when less than 5% of charging piles were below county level, the charging network is accelerating its penetration into rural areas, with continuous improvement in usage environment.

According to the “Research on Electric Vehicle Travel in Rural China,” by 2030, the number of vehicles per thousand people in rural China will approach 160, with a total ownership exceeding 70 million units, and the market scale could reach 500 billion yuan.

In the 2026 Year of the Horse Spring Festival Gala, the “Fuk” character pattern was formed by Seres and Huawei’s collaboration on the Wenjie brand new energy vehicles.

Cui Dongshu, Secretary-General of the Passenger Car Branch of the China Automobile Circulation Association, said that the market with the greatest potential in China’s auto market is the county, township, and small city markets. The average number of cars owned per hundred households in rural areas at the end of the year is significantly lower than in cities, leaving large room for growth. Cui predicts that the share of new energy vehicles in county and township markets could rise to over 30%, playing a strong role in promoting overall market development.

Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers, also stated that based on China’s economic development level, population base, and resource endowments, the peak of China’s auto consumption market is around 40 million units. Future growth points are likely to be in third- and lower-tier cities. With further deployment of charging infrastructure and favorable national policies, the next few years will see third- and fourth-tier cities and rural areas becoming new high points for new energy vehicle development, driving sales growth.

(Article source: Shanghai Securities News)