China’s major subsidies for electric vehicle purchases are concluding, setting the stage for higher consumer costs in 2026. The nationwide policy fully exempting EVs from purchase tax expires December 31, 2025. Starting January 1, 2026, the tax will be halved with a maximum subsidy of 15,000 RMB ($2,064) per vehicle. In response, over 20 automakers including Li Auto and Nio have launched “purchase tax guarantee” programs covering the new tax cost for customers who order now but receive vehicles in 2026 due to delivery delays. Concurrently, local government trade-in subsidy programs in numerous cities are being scaled back or paused.