China sets 25pc goal for NEV sales by 2025

China is aiming to boost sales of new energy vehicles (NEVs) to 25pc of total automobile sales by 2025, according to a draft plan by the ministry of industry and information technology.

The draft new energy vehicle industry development plan (2021-2035) is under public consultation until 9 December.

China in 2012 published a development plan for 2012-2020, and NEV output has increased significantly since, particularly in 2017 and 2018.

The country produced 1.27mn units of NEV in 2018, up by 146pc from 2016, according to the China association of automobile manufacturers. But sales have reached only 0.95mn units in the first 10 months of this year, accounting for only 4.6pc of total automobile sales, well short of the 25pc target by 2025.

The long-term plan is to also improve the outlook for the rare earth magnet market. Each NEV consumes around 2.5-5kg of rare earth magnets, which contain about 28pc of praseodymium-neodymium.