China’s national financial regulator unveiled the country’s first-ever insurance guidelines for electric vehicles (EVs) and plug-in hybrids (PHEVs) on Friday, aimed at addressing the unique challenges posed by the rapid rise of new energy vehicles (NEVs). The guidelines focus on reducing maintenance costs for these vehicles and exploring the establishment of a risk classification system for insurance models.
As China’s NEV market continues to grow, the guidelines also seek to tackle the evolving risks associated with smart driving technologies and the swift pace of model iterations.
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The rapid advancement of technology, software, and cybersecurity has shifted the risk factors of vehicle driving away from traditional human elements toward these new technical considerations. This change is reflected in the expansion of the NEV sector, which reached 31.4 million units by the end of December 2024, surpassing the significant 30 million milestone.
According to the Ministry of Public Security (MPS), NEVs, which encompass battery electric vehicles (BEVs), PHEVs, and fuel cell vehicles, now make up 8.9 percent of the total vehicle fleet in China. As of December 2024, the country’s total vehicle ownership stood at 353 million units.
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BEVs alone accounted for 22.09 million of these vehicles, representing 70.34 percent of the NEV ownership share. Additionally, China registered 11.25 million new NEVs in 2024, reflecting a 51.49 percent increase from the previous year. These new NEVs accounted for 41.83 percent of all new vehicle registrations in the country, highlighting the strong momentum of the sector.
