China targets 20pc NEV share by 2025: Correction

  • Market: Metals, Oil products
  • 06/11/20

Corrects target date in headline, first paragraph

China's state council has announced a development plan for the new energy vehicle (NEV) industry during 2021-35, targeting a 20pc share of NEVs in the country's total vehicles sales by 2025.

China aims to lower the average power consumption of a new battery electric passenger car to 12kWh/km by 2025, according to the plan, which also makes clear the country's ambitions to fully electrify public vehicles, commercialise fuel cell vehicles and realise the scale application of highly autonomous vehicles.

Battery electric vehicles (EVs) by 2035 will become the mainstay of new vehicle sales in the country, the plan said.

The government also wants to strengthen innovations to improve the industry's infrastructure of key components such as power batteries and new generation automotive motors, while promoting integration and a co-ordinated development of electric, network and intelligent technologies.

The plan is also designed to accelerate the development and application of automotive operating systems, build an efficient power battery recycling system and speed up the development of infrastructure such as power and hydrogen charging and battery replacing facilities.

The plan calls for the merger and reorganisation of competitive enterprises to strengthen industry integration. The government will implement preferential tax policies for NEVs, optimise traffic management and financial services, provide financial support for building charging points as public facilities, while providing preferential policies for parking and charging of NEVs.

The government is aiming for at least 80pc of NEVs by next year to be used in areas such as public transport, taxi services and logistics in the country's "ecological civilisation" pilot zones and key areas for air pollution prevention and control.

The plan comes after Beijing announced new development plans for strategic industries, including EVs, new energy resources and technology infrastructure, in response to the impact of the Covid-19 economic downturn and trade tensions with the US.

Chinese NEV output totalled 738,000 during January-September, down by 18.7pc from a year earlier. Sales fell by 17.7pc to 734,000, with higher output in recent months outweighed by the overall impact from the Covid-19 pandemic.


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