The new energy vehicle (NEV) in China is commonly categorised with BEV, PHEV, FCEV, Range Extender EV which are eligible for subsidies and special NEV green license plate, while traditional mild hybrid or full hybrid vehicles, are not deemed as NEV.
China has announced big plans to further grow its NEV industry and market. It is already the world’s largest NEV market by countries with total sales of 1.2 million NEVs in 2020. To put this into perspective: This number roughly equals total vehicle sales in the EU for the same year. By 2025, NEV sales in China are targeted to account for 20% of total passenger vehicle sales, which would amount to around 6.1 million in volume. To achieve that, China’s government has released national and regional support policies and infrastructure plans.
But it is not only the “20% share” target itself. Chinese OEMs and new NEV start-ups rush into the race aiming to reshuffle the industry and auto business. Speed and agility, user centricity, and entrepreneurship characterize start-ups such as NIO, XPeng, and Li Auto, and set them apart from traditional OEMs.
What does this mean for multinational OEMs? Download your free copy of our latest analysis of the Chinese NEV market!