Mobility Innovators

China is the biggest market of New Energy Vehicles (NEVs), both for manufacturing and users. More than 3 million electric cars are sold in China as of 2020. Similarly, the country has deployed more than 421,000 electric buses. Sales of NEVs in China would grow by 47% to 5 million in 2022 (The China Association of Automobile Manufacturers).

Favorable government policies and NEV subsidies played a key role to promote new energy vehicles in China. Ministry of Finance, Government of PR China is planning to shift towards zero NEV subsidies. The transition plan is as follows:

The ministry announced the reduction in subsidies for NEVs in April 2020. Further, The government announced its plan to reduce industrial subsidies, including NEV subsidies in November 2021.

China has set a target of 20% of auto sales for NEV, including plug-in hybrids and hydrogen fuel cell vehicles by 2025. However, some experts predicted that China will achieve 30% of auto sales for NEV by 2025.

Beijing Municipality will raise the quota of new-energy vehicles (NEV) in the new car license plate allocation. The city will allocate 100,000 new car plates in 2022, among which the quota for NEV will be 70,000, while the quota for traditional fuel cars will be 30,000. These measures will help to accelerate the adoption of NEV.