New Energy Vehicle Industry Development Plan (2021-2035)

climate
Jan 26, 2021

On November 02nd 2020, the “New Energy Vehicle Industry Development Plan (2021-2035)” was published by the State Council Information Office of the People’s Republic of China.

The New Energy Vehicle Industry Development Plan (2021-2035) is a strategic top-level policy guiding the development of a comprehensive and fully integrated New Energy Vehicle (NEV) and Intelligent Connected Vehicle (ICV) eco-system in China over the course of the next 15 years and is part of the comprehensive roadmap to develop China into a global automotive powerhouse.

The plan follows the Energy Conservation and New Energy Vehicle Industry Development Plan (2012-2020), which was issued by the State Council in 2012.

The New Energy Vehicle Industry Development Plan (2021-2035) in eight chapters lays out the future trends and key fields for the NEV and ICV industry and market development in China, aiming to systematically:

  • promote and guide sustainable and market-oriented NEV and ICV development;
  • deeply integrate China’s NEV industry into the global industrial and value chains;
  • deepen regulatory reforms and improve the policy and regulation system;
  • improve core technology and foster technological innovation (e.g. battery technology and management, fuel cell systems, materials, high precision mapping, V2X);
  • promote cross-industry and cross-domain (e.g. transport, energy, ICT) integration;
  • build and improve ICT and NEV (e.g. V2X, electric charging infrastructure, hydrogen infrastructure) infrastructure;
  • promote intelligent manufacturing;
  • strengthen intellectual property protection;
  • strengthen organizational coordination;
  • strengthen international cooperation.

The policy is based on the assumption that the NEV industry eco-system is evolving from a “chain relationship” between parts, vehicle development and production, marketing and service enterprises, to a “eco-network system” between the automobile industry, and the energy, transportation, information and communication sectors among others.

The New Energy Vehicle Industry Development Plan (2021-2035) lays out 4 principles which are guiding the future development of China’s NEV and ICV eco-system:

1.Market-led development

China will give full play to the decisive role of the market in the allocation of resources, strengthen the main role of enterprises in the selection of technology routes, production and service system construction; better play the role of the government in strategic planning and guidance, standards and regulations, quality and safety supervision, market order maintenance, green consumer guidance, etc., to create a favorable environment for industrial development.

2. Innovation-driven development

China will deepen the implementation of the innovation-driven development strategy, establish an enterprise-oriented, market-oriented and industry-university-research-application collaborative technological innovation system, improve the institutional environment that stimulates and protects innovation, encourage the parallel development of various technological routes, support various types of subjects to work together to overcome key core technologies, increase the strength of business model innovation, and form a new type of industrial innovation eco-system.

3. Coordinated promotion

China will improve the coordination mechanism of horizontal coordination and vertical integration, promote the deep integration of NEVs with the energy, transportation, information and communication sectors, and coordinate technical R&D, standard formulation, promotion and application, and infrastructure construction, so as to turn the massive market advantages into industrial advantages.

4. Open development

China will practice the concept of cooperation based on openness, inclusion and mutual benefit and win-win cooperation, expand the opening up to the outside world at a high level, and promote reform, development and innovation with openness; China will adhere to the combination of “bringing in” and “going out”, strengthen international cooperation, actively participate in international competition, cultivate new advantages in the automotive industry, so as to realize deep integration into the global industry chain and value chain system.

The New Energy Vehicle Industry Development Plan (2021-2035) lays out following targets for 2025 and 2035:

  • By 2025, China’s NEV market will be significantly more competitive, with major breakthroughs in key technologies such as traction batteries, motor and vehicle operating systems, and an overall improvement in safety standards. The average power consumption of new pure electric passenger cars will be reduced to 12.0 kWh/100 km (currently more than 15 kWh/100 km), NEV sales will reach about 20% of total new car sales (currently 5%), highly automated driving vehicles will be commercialized in limited areas and specific scenarios, and the convenience of charging and battery swapping services will be significantly improved.
  • By 2035, the core technology of NEVs in China will reach the international advanced level, and the quality of brands will have strong international competitiveness. Pure electric vehicles will become the majority of new vehicles sold, public sector vehicles will be fully electrified, fuel cell vehicles will be commercialized, highly automated vehicles will be adopted on large scale, the charging and battery swapping service network will be convenient and efficient, and the construction of the hydrogen fuel supply system will be steadily advanced, which will effectively promote energy conservation and emission reduction and improve the efficiency of the society.

Conclusion:

The New Energy Vehicle Industry Development Plan (2021-2035) is a top-level development blueprint which not only aims at the more market-oriented, and sustainable development of China’s NEV and ICV industry but is a guideline for the comprehensive transformation of the country’s automotive industry and market as part of a holistic inter-connected eco-system including transport, energy and ICT.

Please find the translation of the policy in English language here.

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Sino-German Coperation on Low Carbon Transport (CLCT)

Project country
China
Political Partners
Ministry of Transport of the People’s Republic of China (MoT)
Implementation Partners
Transport Service Department of the Ministry of Transport of the People’s Republic of China (MoT)
Duration
03/2015 - 07/2022