China has set annual vehicle sales targets for 2025 at 32.3 million units, with new energy vehicles (NEVs) expected to account for 15.5 million, reflecting a penetration rate of 48 percent, according to an automotive industry growth stabilization plan released by eight government departments including the Ministry of Industry and Information Technology.
The plan, aimed at maintaining stable growth in the automotive sector, also calls for a roughly 6 percent increase in the added value of the automotive manufacturing industry and emphasizes the importance of the sector as a key pillar of the national economy.
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The document notes that “the external environment has become more complex and challenging, with intensified unilateralism and protectionism disrupting the stability of industrial and supply chains,” while the domestic economic recovery remains fragile due to insufficient effective demand and disorderly market competition.
To support the targets, authorities plan to accelerate the electrification of public sector vehicles, further stimulate automobile consumption, optimize charging infrastructure, and refine industry management policies.
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From January to August 2025, China sold 9.59 million NEVs, a 36.37 percent increase from the same period last year, while total vehicle sales reached 21.1 million units, up 12.46 percent year-on-year, according to the China Association of Automobile Manufacturers (CAAM). The NEV penetration rate stood at 45 percent during this period.