Overview of the Implementation Guidelines for Subsidies on New Energy City Buses and Power Battery Updates in 2025
On March 19, 2025, the Office of the Ministry of Transport, the National Development and Reform Commission, and the Ministry of Finance issued the “Implementation Guidelines for Subsidies on New Energy City Buses and Power Battery Updates for 2025.” Below is the full text of the guidelines:
Chapter 1: Scope and Standards of Subsidies
Article 1: Utilizing special long-term government bond funds, fixed subsidies will be provided to urban bus companies (hereinafter referred to as the applicants) for updating new energy city buses and replacing power batteries. Applicants are encouraged to reasonably select the types of new energy city buses based on passenger flow changes and the development of the urban bus industry. Each bus will receive an average subsidy of 80,000 yuan; for those replacing power batteries, the average subsidy will be 42,000 yuan. Local authorities may determine their own subsidy standards based on the demand and quantity of updated vehicles and replaced power batteries.
Article 2: Applicants must comply with the provisions of the “Urban Public Transport Regulations” and obtain the operational rights for urban public transport vehicles through licensed operation or other legal means, in accordance with relevant local regulations and rules. The term “city buses” refers to vehicles that have obtained public transport operating qualifications and provide public transport services within the boundaries set by the city government, as recognized by the local transportation authority.
Article 3: Subsidy funding supports the update of buses that are 8 years or older, specifically those registered before December 31, 2017, as well as the replacement of power batteries for new energy city buses that exceed their warranty period or do not meet safety operating conditions before December 31, 2025. Local authorities may also consider phasing out other fuel type buses for the purpose of updating to new energy city buses.
Article 4: Local transportation authorities should adhere to the principle of combining equipment updates with resource conservation, guiding applicants to reasonably select the types of new energy city buses based on passenger flow changes and the development needs of micro-circulation public transport. They are encouraged to replace with low-floor and low-entry new energy city buses.
Chapter 2: Subsidy Application, Review, and Distribution
Article 5: Applicants intending to apply for subsidy funds must promptly submit their applications to the local transportation authority after completing the updates of new energy city buses and power batteries, with a deadline of December 31, 2025. The applicant’s name must match the name of the vehicle owner on the registration certificate of the scrapped and purchased city bus, or there must be a legal relationship between the applicant and the vehicle owner. For updated new energy city buses, documentation such as the initial registration date of the scrapped vehicle, vehicle identification code, scrap vehicle recovery certificate, vehicle cancellation certificate, and other necessary information must be provided. Scrapped old city buses can include those obtained through financing leasing, for which the applicant must provide the leasing contract.
Article 6: Upon receiving the application information, local transportation authorities will promptly review and provide feedback on the results. Applications that are complete and meet the requirements of these guidelines will be approved; incomplete or unclear submissions will be returned for correction by January 30, 2026.
Article 7: Applications submitted between July 1, 2024, and December 31, 2024, that are approved but not yet funded will follow the standards outlined in these guidelines. If applicants for updated new energy city buses have only partially obtained the required documents but acquire all necessary materials by June 30, 2025, they may apply and be included in the 2025 policy support range.
Article 8: Local transportation authorities should compile information on eligible new energy city buses and power battery updates, determine the subsidy amounts, and submit funding requests to their respective finance departments. Finance departments will review these requests and disburse funds to applicants following the established procedures.
Chapter 3: Management of Subsidy Funds
Article 9: The subsidy funds for new energy city buses and power battery updates will be shared by central and local finances in a 90:10 ratio, with specific ratios determined by region. Eastern provinces will share funds at an 85:15 ratio, central provinces at 90:10, and western provinces at 95:5.
Article 10: Local authorities should formulate specific implementation rules based on their conditions, clarifying local subsidy standards. A preference may be given to the allocation of funds for low-floor and low-entry new energy city buses. Provincial transportation departments should actively coordinate with related departments to strengthen supply-demand connections between bus manufacturers, power battery producers, and battery replacement service companies and applicants.
Article 11: By March 15, 2026, provincial transportation departments must report the local status of new energy city buses and battery updates through the “Urban-Rural Road Passenger Fuel Consumption Information Declaration and Subsidy Management System” and submit the required reports to the Ministry of Transport.
Chapter 4: Safeguards
Article 12: The Ministry of Transport, the National Development and Reform Commission, and the Ministry of Finance are responsible for managing and supervising the updates of new energy city buses and power batteries, according to their respective duties. Local transportation authorities must carefully review subsidy applications and oversee the use of subsidy funds. Financial departments will supervise fund disbursement to ensure safety and timely distribution, while regulatory agencies will strengthen random inspections of subsidy funds.
Article 13: Any fraudulent behavior to obtain subsidy funds through improper means, including forgery or providing false information, will lead to serious legal consequences.
Article 14: Those involved in the sale or forgery of scrap vehicle recovery certificates will be dealt with according to the regulations on the management of scrap vehicle recovery.
Article 15: Any unit or individual misappropriating or fraudulently obtaining subsidy funds will be dealt with according to relevant regulations.
Chapter 5: Supplementary Provisions
Article 16: These guidelines will take effect upon publication.
Article 17: The Ministry of Transport, the National Development and Reform Commission, and the Ministry of Finance are responsible for interpreting these guidelines according to their duties.
