On March 19, the General Office of the Ministry of Transport, the General Office of the National Development and Reform Commission, and the General Office of the Ministry of Finance jointly issued the "Implementation Details for Subsidies on the Renewal of New-Energy Urban Buses and Power Batteries in 2025," further promoting the upgrading of new-energy urban buses and power battery equipment.

 

 

• Using funds from the ultra-long-term special government bonds, a fixed subsidy will be provided to urban bus enterprises for upgrading their new-energy city buses and replacing their power batteries.
• Each vehicle receives an average subsidy of 80,000 yuan; among them, vehicles replacing their power batteries receive an average subsidy of 42,000 yuan per unit. Local areas will independently determine the subsidy standards for upgrading new-energy urban buses, based on the demand and proportion of vehicles being updated as well as the number of power batteries being replaced.
• Subsidy funds will support the renewal of urban buses that are 8 years old or older—specifically, those registered on or before December 31, 2017—as well as the replacement of new-energy urban bus batteries that have exceeded their warranty period or no longer meet safety operation requirements by December 31, 2025.
• Applicants intending to apply for subsidy funds should promptly submit their applications to the local transportation authorities after completing the renewal of new-energy city buses and their corresponding power batteries, with a deadline set for December 31, 2025.

 

Notice original text:

Notice from the General Office of the Ministry of Transport, the General Office of the National Development and Reform Commission, and the General Office of the Ministry of Finance on Issuing the "Implementation Details for Subsidies on the Renewal of New-Energy Urban Buses and Power Batteries in 2025"

Departments of Transport (Bureaus, Commissions) of provinces, autonomous regions, municipalities directly under the central government, and the Xinjiang Production and Construction Corps; Development and Reform Commissions; Finance Departments (Bureaus); and Local Supervisory Bureaus of the Ministry of Finance:

To implement the spirit of the "Notice from the State Council on Issuing the Action Plan for Promoting Large-Scale Equipment Updates and Consumer Goods Trade-In Programs" (Guofa [2024] No. 7), and in accordance with the requirements outlined in the "Notice from the National Development and Reform Commission and the Ministry of Finance on Strengthening and Expanding the Implementation of Large-Scale Equipment Updates and Consumer Goods Trade-In Policies in 2025" (Fagai Huanzi [2025] No. 13), we are now issuing the "Detailed Implementation Rules for Subsidies on the Renewal of New-Energy Urban Buses and Power Battery Systems in 2025." Please carefully review and earnestly carry out these guidelines based on your specific circumstances.

Office of the Ministry of Transport Office of the National Development and Reform Commission Office of the Ministry of Finance

February 18, 2025

(This document is publicly released.)

 

Implementation Details for Subsidies on New Energy City Buses and Power Battery Upgrades in 2025

Chapter 1: Scope and Standards of Subsidies

Article 1: Utilizing funds from the ultra-long-term special government bonds, a fixed subsidy will be provided to urban bus enterprises (hereinafter referred to as "applicants") for upgrading their new-energy city buses and replacing their power batteries. Enterprises are encouraged to rationally select the length of the new-energy city bus models based on factors such as passenger flow changes and the development trends of the urban public transportation industry. The average subsidy per vehicle is set at 80,000 yuan, with an additional average subsidy of 42,000 yuan per vehicle specifically allocated for battery replacements. Local authorities will independently determine the subsidy standards for upgrading new-energy city buses, taking into account the specific needs and proportional distribution of vehicles requiring updates versus those needing battery replacements.

Article 2: Applicants referred to in these Detailed Rules shall, in accordance with the "Urban Public Transportation Regulations," obtain, through franchising, licensing, or other legal means, the operational rights for urban public bus and tram routes—specifically as stipulated in the "Regulations on the Administration of Urban Bus and Tram Passenger Transport" (Ministry of Transport Order No. 5 of 2017) or relevant local laws, regulations, and rules. The term "urban buses" as used herein refers to vehicles that have legally acquired public transportation operating qualifications within the scope designated by the city’s people’s government and are authorized to provide public passenger transport services, as determined by the local transportation authorities.

The updated new-energy urban buses referred to in these detailed rules mean those replacing outdated urban buses, specifically those purchased from among the models listed in the "Catalogue of New-Energy Vehicle Models Eligible for Vehicle and Vessel Tax Reduction or Exemption," the "Catalogue of New-Energy Vehicle Models Exempted from Vehicle Purchase Tax," or the "Catalogue of Recommended Models for Promoting and Applying New-Energy Vehicles." This includes pure electric, plug-in hybrid, and hydrogen fuel cell vehicles. The newly purchased new-energy urban buses must have "public transportation passenger service" designated as their usage type in the "Motor Vehicle Registration Certificate"; passenger cars, however, are not covered under this policy support framework.

According to these detailed rules, "replacing the power battery" refers to the complete replacement of the power battery in new-energy urban buses. The newly replaced power batteries must have been manufactured on or after January 1, 2024 (inclusive), and come with a warranty period of at least 5 years. Additionally, the replacement process must comply with the relevant requirements outlined in the "Announcement No. 22 of 2024" jointly issued by China’s Ministry of Industry and Information Technology, Ministry of Transport, Ministry of Public Security, Ministry of Commerce, Ministry of Emergency Management, State Administration for Market Regulation, National Financial Regulatory Administration, and the National Fire Rescue Bureau.

Article 3: Subsidy funds will support the renewal of urban buses that are 8 years or older—specifically, those registered on or before December 31, 2017—as well as the replacement of power batteries in new-energy urban buses that have exceeded their warranty period or no longer meet safety operation requirements by December 31, 2025. Local areas may, based on prioritizing the scrapping of aging new-energy urban buses and considering both fund availability and the demand for replacing older urban buses, also scrap urban buses powered by other fuel types and replace them with new-energy urban buses.

Article 4: Transportation authorities in all regions shall adhere to the principle of combining equipment upgrades with resource conservation, guiding applicants to rationally select the length specifications of newly replaced new-energy urban buses based on factors such as passenger flow changes and the growing demand for micro-circulation bus services. They are encouraged to replace existing buses with low-floor and low-entry new-energy urban buses.

Chapter 2: Subsidy Application, Review, and Disbursement

Article 5: Applicants seeking subsidy funds should promptly submit their applications to the local transportation authorities after completing the renewal of new-energy city buses and their corresponding power batteries. The deadline for submission is December 31, 2025.

The applicant's name must match the name of the vehicle owner listed on the motor vehicle registration certificate of the scrapped (or leased-finance-purchased) city bus, unless the vehicle was obtained through a leasing-financing arrangement. Alternatively, the applicant must have a legally recognized affiliation with the owner named on the registration certificate of the scrapped or purchased city bus. For the renewal of new-energy city buses, applicants must provide documentation verifying the first registration date, vehicle identification number, and copies of the "Certificate of Recycling for Scrapped Motor Vehicles" and "Motor Vehicle Cancellation Certificate" for the scrapped vehicle. Additionally, supporting documents such as the vehicle identification number, model specifications, payment receipts, the "Unified Invoice for Motor Vehicle Sales," and the "Motor Vehicle Registration Certificate" for the newly purchased vehicle must also be submitted.

Scrapped, aging city buses can be replaced with vehicles acquired through financial leasing. For those scrapping leased, aging buses, applicants are required to provide the financial leasing contract. If the applicant has a legally recognized affiliation with the vehicle owner, relevant supporting documents must also be submitted. For battery replacements, applicants must furnish the Vehicle Identification Number (VIN) of the vehicle equipped with the new battery pack, along with details such as the number and codes of the old battery packs, as well as the number and codes of the newly installed battery packs, their production dates, and other pertinent information. Additionally, supporting documents like the battery replacement contract (including requirements for battery safety and compliance), invoices, payment receipts, and acceptance certificates must be provided.

The aforementioned "Certificate of Scrapped Motor Vehicle Recycling," "Motor Vehicle Deregistration Certificate," "Unified Invoice for Motor Vehicle Sales," "Motor Vehicle Registration Certificate," as well as the acceptance certificate for replacing the power battery, should be obtained between January 1, 2025, and December 31, 2025.

Article 6: Upon receiving the submitted information, the local transportation authority of the applicant’s jurisdiction shall promptly review it and provide feedback on the review results. If the information submitted by the applicant is authentic, complete, and meets the requirements outlined in these Detailed Rules, the application will be approved. However, if the information is incomplete or unclear to the point where it cannot be properly identified, the reviewing authority will notify the applicant of the need to rectify the information. The applicant must then comply with the request and submit the corrected information by January 30, 2026, at the latest.

Article 7: During the period from July 1, 2024, to December 31, 2024, applications for subsidy funds that have been submitted but not yet disbursed will be processed according to the standards specified in these detailed rules upon approval. Additionally, for the renewal of new-energy urban buses during the same period, those who have already obtained partial documentation—such as the "Certificate of Scrapped Motor Vehicle Recycling," "Motor Vehicle Cancellation Certificate," "Unified Invoice for Motor Vehicle Sales," and "Motor Vehicle Registration Certificate"—and manage to secure all required documents by June 30, 2025, will be eligible for policy support under the 2025 framework upon submission and approval. Similarly, for projects involving the replacement of power batteries, entities that have signed replacement contracts but have yet to complete the replacement and acceptance process will also become eligible for 2025 policy support after submitting an application and receiving approval.

Article 8: Transportation authorities in various regions shall promptly compile information on eligible new-energy urban buses and their battery replacements, determine the subsidy amounts, and submit funding requests to the finance departments at the same level. The local finance departments will review the funding proposals submitted by the transportation authorities and, following due procedures, disburse the subsidy funds directly to the applicants. When submitting funding requests to their respective finance departments, transportation authorities in each region shall simultaneously forward their funding allocation recommendations to the development and reform departments.

Chapter 3: Management of Subsidy Funds

Article 9: Subsidy funds for the renewal of new-energy city buses and their power batteries will be jointly funded by the central and local governments at a general ratio of 90:10, with specific allocation ratios determined on a regional basis. Specifically, eastern provinces will share the costs at a ratio of 85:15, central provinces at 90:10, and western provinces at 95:5. Each provincial-level fiscal authority will arrange matching funds proportionally based on the distribution of central government funding, while the mechanism for sharing expenses below the provincial level will be decided by the respective provincial finance departments.

Article 10: Localities shall, based on their specific circumstances, formulate detailed implementation rules for the renewal of new-energy city buses and their power batteries, clearly defining local subsidy standards. For the replacement of low-floor and low-entry new-energy city buses, appropriate preference may be given when allocating subsidy funds. Provincial-level transportation authorities should actively collaborate with relevant departments to facilitate stronger connections between bus manufacturers, power battery producers, power battery replacement service providers, and applicants, thereby leveraging economies of scale.

Article 11: By March 15, 2026, each provincial-level transportation authority shall submit, via the "Urban and Rural Road Passenger Transport Fuel Consumption Information Reporting and Subsidy Management System" (yb.motcats.com.cn), reports detailing the status of local new-energy urban buses and battery replacement initiatives. From these reports, authorities should export the required forms (see Attachments 1–3 for format details) and submit them to the Ministry of Transport, duly stamped with the official seal.

Chapter Four: Safeguard Measures

Article 12: The Ministry of Transport, the National Development and Reform Commission, and the Ministry of Finance shall collaborate according to their respective responsibilities to manage and oversee the renewal of new-energy urban buses and their power batteries. Local transportation authorities are tasked with rigorously reviewing subsidy applications submitted by applicants and ensuring effective oversight of how these funds are utilized. Meanwhile, local finance departments will monitor fund disbursements to guarantee both financial security and timely distribution. Additionally, the Ministry of Finance’s regional supervisory bureaus will strengthen random inspections of the subsidy funds allocated for the renewal of new-energy urban buses and their power batteries. Local governments must assume primary responsibility, implementing robust measures to ensure a smooth, seamless transition and orderly handover of the renewal subsidy policies across fiscal years. Local transportation authorities should actively coordinate with relevant departments to enhance regulatory oversight of prices for new-energy urban buses and their power batteries, promptly addressing instances such as price collusion or unjustified price hikes—thereby ensuring that the renewal subsidy policies truly benefit urban bus enterprises. Furthermore, local authorities must urge applicants to comply with requirements set forth by relevant agencies, mandating that decommissioned urban buses and retired power batteries be handed over to qualified recycling and dismantling enterprises. Importantly, local governments are prohibited from compelling operators to sell decommissioned buses and retired power batteries exclusively to designated companies, nor may they independently establish subsidy catalogs or enterprise lists that are geographically specific or biased toward particular technologies or products.

Article 13: For any illegal activities discovered—such as fraudulently obtaining subsidy funds through improper means (including forging or altering relevant materials, engaging in fictitious transactions, colluding with others to provide false information, etc.—local authorities shall handle such cases seriously in accordance with laws and regulations. Article 14: Regarding the buying, selling, forging, or altering of the "Certificate for Recycling Scrapped Motor Vehicles," relevant departments will take action based on the "Administrative Measures for the Recycling of Scrapped Motor Vehicles" (Decree No. 715 of the State Council). Article 15: Units and individuals found misappropriating or fraudulently obtaining subsidy funds will be dealt with by the relevant authorities according to the "Regulations on Penalties and Disciplinary Actions for Fiscal Violations" (Decree No. 427 of the State Council) and other applicable regulations.

Chapter 5 Supplementary Provisions

Article 16: These detailed rules shall come into effect as of the date of their promulgation.

Article 17: These Detailed Rules shall be interpreted by the Ministry of Transport, the National Development and Reform Commission, and the Ministry of Finance, each according to their respective responsibilities.