Following CarNewsChina’s December 13 report on automakers’ reactions to draft pricing compliance regulations, more Chinese automakers have confirmed support for China’s new trade‑in financing guidance, which allows buyers to reduce penalties when paying off auto loans early during vehicle trade‑ins. The measure, issued on December 14, 2025, by the Ministry of Commerce, the People’s Bank of China, and the Financial Regulatory Authority, is part of a broader effort to support consumer financing for vehicle upgrades, according to Sina.
The joint notice instructs banks and non‑bank lenders to determine loan amounts, terms, and interest rates based on borrowers’ repayment ability and credit profiles. Financial institutions are encouraged to cooperate with platforms and merchants to meet consumer financing needs. Local commerce departments are urged to coordinate with financial regulators to ensure effective implementation, expand credit availability, and improve efficiency through digital financial tools such as smart-contract-based red envelopes on the digital yuan.
Automaker Responses
Automakers have issued statements supporting both pricing compliance and trade‑in financing guidance. Nio stated it supports the pricing and financing rules while prioritising consumer rights and transparency. GAC said, “We firmly support and actively respond to the Automotive Industry Price Behaviour Compliance Guidelines. We will strictly follow the requirements, uphold compliant operations, rely on technological innovation, quality upgrades, and service optimisation to build core competitiveness, and resolutely reject price fraud or unfair competition.” Dongfeng issued a similar statement emphasising compliance and market fairness.
On December 15, FAW stated that it will fully implement the draft guidelines, maintain internal price management and compliance systems, and strictly prohibit unfair price competition, underscoring its role as a central enterprise in promoting transparency, fair competition, and healthy industry value cycles. Seres fully supports the draft guidelines and noted that it will standardise pricing management across product pricing, dealer operations, and sales promotion, upholding fair competition principles to maintain an orderly automotive market.
Implementation & Impact
Authorities call for improved information sharing between commerce departments and financial institutions, including credit and trade‑in service platforms. The notice emphasises monitoring implementation, promoting awareness of financing support, protecting consumers’ rights, and encouraging rational borrowing.
The trade‑in financing policy establishes a commercial and financial framework in China that supports auto trade‑in programs, consumer financing for new vehicles, and broader durable-goods consumption.
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