Overall, China plans to sell 32.3 million vehicles across all drive types in 2025, which would represent an increase of 3 per cent. This would bring the share of NEVs in all cars sold to 48 per cent. No specific sales targets have been set for 2026. The abbreviation NEV (New Energy Vehicles) covers electric cars, plug-in hybrids, vehicles with range extenders and fuel cell cars.
The work plan begins with the assessment that “the automotive industry is an important force driving a new round of technological revolution and industrial transformation, an important pillar for building a strong manufacturing country, and an important pillar of the national economy.” However, external challenges for the industry are growing, with unilateralism and protectionism cited as key issues that are affecting the stability of the automotive industry and the supply chain.
The basis for domestic economic recovery is also not yet solid. In order to achieve the most important goals for the economic development of the automotive industry, the Chinese government has therefore formulated this work plan for stable growth in the automotive industry.
Measures to promote NEV sales in China
The planned measures themselves: In order to achieve the above-mentioned sales targets, the government is planning, for example, pilot programmes in 25 cities, under which more than 700,000 new NEVs are to be procured for public transport (buses, taxis, logistics). Furthermore, tax relief on purchase tax and motor vehicle tax and other financial incentives for NEVs are to be granted. Plans also include old vehicle replacement programmes (‘old for new’) and easier sales of used cars. In addition, there will be an expansion of charging and battery replacement infrastructure, especially in rural areas. Additionally, there are to be new pilot projects for intelligent connected vehicles, including for level 3 assisted driving.
One focus of the roadmap is technological sovereignty. The aim is to promote research and development in chips, operating systems, AI and solid-state batteries for the automotive industry. At the same time, China is pushing for stricter standards for NEVs, batteries and autonomous driving.
Strong focus on exports
Particularly important for European car manufacturers, China’s automotive industry is to further increase exports in order to secure growth. The work plan aims to increase car sales, including new energy vehicles, through an offensive on international markets. A central pillar is the promotion of export quality and efficiency. To achieve this, Chinese companies are to be encouraged to develop their products specifically for target markets and to expand their global marketing and customer service systems.
Logistics is also a key focus for exports, for example, roll-on/roll-off facilities for huge car ferries to transport new cars overseas. In addition, there are plans to set up overseas spare parts warehouses to reduce overall costs. Another goal is to actively participate in international forums in order to increase influence on global norms and standards.
Banks to support export strategy
The export strategy also includes financial support. Banks are to provide loans for operational business and investments, and help companies with transactions in different currencies. Insurance companies are also to optimise their export credit insurance and offer country risk analyses to protect companies from exchange rate fluctuations.
The Chinese government’s new work plan once again makes it clear that electric cars and other new energy vehicles are of great strategic importance. On the one hand, the work plan summarises various measures to stimulate domestic demand. On the other hand, it also encourages China’s car manufacturers to focus on growth abroad. This can already be seen in manufacturers such as BYD, Changan, Leapmotor, MG Motor, Nio and Xpeng, which have long since put out feelers to Europe. Others are likely to follow.
gov.cn, gov.cn (PDF, both in Chinese)
This article was first published by Florian Treiß for Ev Authority’s German edition.
