The "Vehicles to the Countryside" Policy

The "Vehicles to the Countryside" Policy, officially designated as the "New Energy Vehicles to the Countryside Campaign", is a dedicated nationwide initiative jointly organised by the Ministry of Industry and Information Technology, the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Agriculture and Rural Affairs, and the National Energy Administration to drive new energy vehicle (NEV) adoption across county and rural markets. Since its inception in 2020, the programme has served as a pivotal policy lever to accelerate NEV penetration and revitalise rural retail demand. As of June 2026, cumulative sales under the campaign have surpassed 23 million units.

Overview of the 2026 Campaign

On 18 June 2026, the five ministries jointly issued the "Notice on Launching the 2026 New Energy Vehicles to the Countryside Campaign", marking the official rollout of this latest round. The campaign runs under the theme: "Green, Low-Carbon, Intelligent, and Safe — Smart Mobility across Counties and Towns, Green Benefits for Every Rural Household". On 25 June, the Ministry of Industry and Information Technology, the Ministry of Commerce, and other participating agencies simultaneously flagged off the 2026 campaign in Tacheng, Xinjiang and Chengmai, Hainan. In the first half of 2026, the new energy passenger vehicle market penetration rate exceeded 60% for two consecutive months, setting an all-time record.

Model Lineup and Selection

The 2026 campaign features a significantly expanded vehicle roster. The official catalogue comprises 155 models, covering the mainstream price bracket of RM30,000 to RM300,000 across a comprehensive spectrum including sedans, SUVs, pick-up trucks, and light commercial vehicles. Highly popular nameplates such as the Xiaomi SU7, Tesla Model 3, and Fangchengbao Tai 7 are all included, highlighting a notable shift from entry-level commuter runabouts in the early years towards mainstream mid-to-high-end offerings.

Core Policy Measures

Bringing vehicle trade-ins to rural areas represents a flagship initiative of the 2026 campaign. Dedicated trade-in zones are established at campaign roadshows to offer "one-stop" services, covering used vehicle valuation and inspection, decommissioning and recycling, as well as trade-in subsidy application processing. Rural car buyers upgrading to an NEV are eligible to claim vehicle trade-in subsidies in line with policy guidelines, with no quota limits on subsidy allocations.

Multi-agency rural deployment is being advanced in tandem. NEV sales dealerships, aftersales and service centres, EV charging and battery-swapping operators, as well as financial and insurance providers are being mobilised to rural areas. This initiative aims to accelerate the adoption of intelligent connected vehicle (ICV) tech, advanced charging and swapping solutions, integrated "solar-storage-charging" systems, and Vehicle-to-Grid (V2G) applications, continuously refining the rural EV ownership ecosystem. Concurrently, policies such as vehicle purchase tax and road tax exemptions, alongside targeted funding to address county-level charging infrastructure deficits, are working in synergy to provide robust multidimensional support.

Supporting Infrastructure and Market Outreach

The campaign focuses on representative county-level cities with lower NEV adoption rates but strong market potential, hosting tailored on-ground promotional roadshows. These events feature engaging experiential touchpoints such as static showcases and test drives, whilst leveraging live-streaming traffic and digital consultation channels to stimulate consumer demand across surrounding townships.

Meanwhile, the rollout of supporting infrastructure in lower-tier markets continues to gain momentum. Authorities are steering carmakers to prioritise models featuring long electric driving ranges, superior ground clearance, cold-weather resilience, and high value for money, fully accommodating diverse usage scenarios ranging from daily farming commutes to agricultural logistics. At the same time, partnerships with grid operators and energy companies are being forged to fast-track township- and village-level charging network coverage, effectively bridging the urban-rural infrastructure divide.