China has unveiled a work plan for its automotive industry through 2026, setting targets to boost domestic sales of new energy vehicles (NEVs) and expand exports while promoting technological independence in key areas.
The plan calls for a 20% increase in NEV sales this year to 15.5 million units and projects overall vehicle sales of 32.3 million in 2025, up 3% from the previous year. That would bring NEVs — a category covering battery-electric, plug-in hybrid, range-extended and fuel cell vehicles — to 48% of all cars sold. No sales goal was specified for 2026.
To reach its targets, the government will roll out pilot programmes in 25 cities to procure more than 700,000 NEVs for public transport fleets, alongside tax incentives, subsidies, and vehicle replacement schemes. It also plans to expand charging and battery-swapping infrastructure, particularly in rural areas, and launch new projects for connected and autonomous vehicles.
The plan highlights technology development as a priority, including in semiconductors, operating systems, artificial intelligence and solid-state batteries. Stricter standards for NEVs, batteries and autonomous driving are also foreseen.
Exports are another cornerstone, with the government aiming to increase quality and efficiency in overseas markets. Measures include tailoring vehicles for target markets, strengthening global sales and service networks, building overseas spare parts warehouses, and expanding logistics such as roll-on/roll-off shipping facilities. Banks and insurers will be tasked with supporting exporters through loans, currency services, credit insurance and country risk assessments.
China framed the industry as a strategic pillar for its economy but noted external pressures from unilateralism and protectionism. The work plan reflects both a push to stimulate domestic demand and to secure global market share. Several Chinese automakers, including BYD, Nio, Changan, Leapmotor, MG Motor and Xpeng, have already accelerated their expansion into Europe and beyond.
