New energy vehicles are forecast to make up 20% of new car sales in China by 2025, according to a State Council statement published Monday.
As the world’s largest market, new energy vehicles (NEV) in China include plug-in electric vehicles, battery electric vehicles, plug-in hybrid electric vehicles and fuel cell electric vehicles. The continuous technological advances, infrastructure improvement and increased competitiveness have ensured China’s top spot in the industry.
According to the statement, China’s NEV industry is evolving from a linear model to a network ecosystem, where the chain of car part manufacturers, assembly production and marketing services is being replaced by a multi-player network including players in automobiles, energy, transportation, communications and other industries. Cross-sectoral cooperation and innovations will remain characteristic of China’s NEV industry development.
This year, state and local governments have offered multiple subsidization policies that boosted the production and sales of the NEV industry. Along with the growing needs of new energy vehicles, the production and sales of NEV soared in September, according to data compiled by China Association of Automobile Manufacturers (CAAM) – production reached 136,000 and sales reached 138,000, up 28.9% and 26.2% month on month, and 48% and 67.7% year over year, respectively.
Domestic brands including NIO, Li Auto, Weltmeister and BYD all saw substantial growth in September. Tesla and Volkswagen also showed robust performance leading to expanded electric vehicle production in China.