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NEVs to be 20% of China’s total new auto sales by ‘25

Guidelines released on November 2 by China’s State Council, the country’s top economic governing body, reiterate the crucial role that the development of new energy vehicles (NEVs) will play in strengthening the country’s automotive industry from just quantitative development.

The guidelines, which focus on nurturing the NEV sector over 2021-2035, position the advancement of NEV technology as a strategic move for the country to deal with climate change and promote green development in the future.

The State Council also believes NEV is the answer to the transformation and evolution of the auto industry, not only in China but globally, saying these vehicles will also be an engine to help drive the world towards a sustainable economic development.

Heading in that direction, starting 2021 Beijing will request governing bodies in the country’s eco-sensitive regions – where atmospheric pollution is a perennial problem – and in ‘eco-friendly trial zones’ to guarantee that 80% of their newly-added vehicles either for public transportation, taxis or for logistics services will be NEVs.

NEVs should account for about 20% of total new auto sales nationwide by 2025, according to the release. Since 2015, China has become the world’s leader in NEV sales and utilization, though the numbers of eco-friendly vehicles on China’s roads are still low in proportion to total vehicle registrations, Mysteel Global notes.

Over this year’s January-September, total vehicle sales nationwide reached 17.1 million units, though among these, NEVs accounted for only 734,000 units, or 4.3% of the total, according to the latest statistics from the China Association of Automobile Manufacturers (CAAM). 

By 2025, China also intends to have made major breakthroughs in batteries, motors, and operational systems relating to the NEV sector, according to the guidelines. Also, power consumption for electrical cars should be reduced to 12 kwh/100 km to ensure higher efficiency, driverless NEVs should be used in certain regions and under certain circumstances.

Afterwards by 2035, NEV manufacturing in China should be on par with the best in the world in terms of standards and performance, the guidelines state. Electric cars should be a mainstream auto model, not the niche or even novelty especially in China as regarded nowadays, and the public transportation systems across the country should fully embrace such models.

Over the coming 15 years, a convenient and efficient recharging network should have been installed nationwide and hydrogen-powered NEVs should have been a member of the family too.

To realize all these targets in the years to come, China will welcome foreign investment and cooperation in NEV research and development, designing, trading, and human resources training, and it will progress with developing pure electricity NEV models and nurturing a coherent system involving all the related sectors including auto manufacturing, electricity generation, transportation, and telecommunication.

In the coming years, electric, hybrid, and hydro-powered models should become the mainstream NEVs in China, with the country being able to master the core and essential technologies necessary for NEV manufacturing, according to the guidelines.

All NEV makers in China will need to enhance their self-sufficiency in battery materials including lithium, nickel, cobalt, and platinum, and to grasp the know-how of battery production, quality control, systematic maintenance, and recycling, the State Council urges.

Written by Hongmei Li, li.hongmei@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com

Source: Renault company website