China's Auto Market Races Into the National Day Holiday as Cities Roll Out Purchase Subsidies

October 1, 2026

China's auto market is entering a major sales period as the National Day holiday begins, with local governments across the country rolling out new purchase subsidies and promotional campaigns to stimulate vehicle consumption.

Since late September, provinces and cities including Henan, Gansu, Qinghai, Nanjing, Lanzhou and Qingdao have launched new rounds of automobile purchase incentives. At the same time, automakers are offering holiday promotions and introducing a large number of new models, creating a highly competitive sales environment during the traditional “Golden September and Silver October” period.

Local Governments Step Up Car Subsidies

One of the notable features of this year's campaign is the more targeted design of local subsidies.

Gansu, for example, has allocated RMB 6 million in provincial promotional funds for a vehicle purchase campaign running from September 23 through October 7. Eligible consumers purchasing new passenger vehicles can receive subsidies based on the vehicle's price, with certain local subsidies potentially available in addition to the provincial program.

Hainan has also introduced local incentives. In Sanya's Jiyang District, eligible consumers purchasing new passenger vehicles between September 15 and October 15 can receive subsidies ranging from RMB 2,000 to RMB 8,000 depending on the vehicle price.

Nanjing launched its second round of automobile consumption promotion measures on September 16, offering eligible consumers subsidies based on the selling price of new vehicles. The program is scheduled to run through December 31.

The trend shows that local governments are increasingly combining direct purchase incentives with city- and district-level promotional programs.

Subsidy Coupons Become More Common

Some regions are also using qualification coupons or subsidy vouchers rather than simply distributing a fixed amount of cash to every applicant.

The approach allows local governments to control the pace at which subsidy funds are used and allocate limited budgets more efficiently.

For consumers, however, such programs may come with conditions such as limited quotas, designated application platforms or “first come, first served” rules.

Buyers therefore need to check the specific requirements before placing an order.

Automakers Are Adding Their Own Discounts

Government incentives are only part of the current promotional push.

Automakers are also offering National Day sales campaigns, including cash discounts, trade-in incentives, financing subsidies, tax-related benefits and after-sales packages.

Meanwhile, the Chinese auto market has seen a wave of new product launches. More than 30 new models were introduced or unveiled in September, according to media estimates based on publicly available information.

The result is a three-layer discount structure for some consumers: local government subsidies, manufacturer incentives and dealer promotions.

In certain cases, these benefits may be combined, potentially lowering the effective purchase cost.

The “Golden September and Silver October” Enters a Key Stage

September and October have traditionally been important sales months for China's automobile industry.

Automakers generally increase promotional efforts during this period, while the National Day holiday brings large numbers of consumers into shopping centers, auto shows and dealerships.

Industry representatives cited by Chinese media said the passenger-car market has entered its traditional peak season, with local consumption policies and manufacturer promotions supporting demand. New vehicle launches are also helping attract customers.

This year, local subsidies and the concentrated launch of new models have arrived at roughly the same time, creating additional momentum.

Subsidies Are Limited

Despite the large number of promotional campaigns, consumers should not assume that every buyer automatically qualifies.

Many local subsidy programs have limited budgets and may operate on a “first come, first served” or “use-it-or-lose-it” basis.

Beijing's 2026 vehicle trade-in program, for example, explicitly follows a principle of total budget control, first-come-first-served allocation and suspension once funds are exhausted.

Consumers should therefore check whether the vehicle qualifies, whether the dealer participates in the program, whether different incentives can be combined and when the application deadline expires.

Automakers and Local Governments Compete for Holiday Demand

The National Day holiday has become an important battleground for both automakers and local governments seeking to stimulate large-ticket consumption.

For automakers, new products can bring customers into showrooms, while limited-time promotions can encourage them to complete purchases. For local governments, vehicle subsidies are designed to reduce the effective cost of a major consumer purchase and encourage demand.

With local subsidies, manufacturer promotions and a wave of new models arriving simultaneously, China's auto market is heading into a particularly competitive National Day sales period.

For consumers, however, the headline discount may not tell the whole story. The more useful comparison is the final transaction price after accounting for government subsidies, manufacturer incentives, trade-in benefits and any financing costs.

The performance of the automobile market during the holiday will provide another important indication of consumer demand and competitive conditions in China's auto industry.