A BYD autonomous driving prototype on display at the Beijing Auto Show in April 2026. Credit: CnEVPost
- China targets NEV shares of 70% for passenger-car sales and 40% for commercial-vehicle sales by 2030, alongside large-scale deployment of autonomous vehicles.
- The plan calls for tighter oversight of vehicle and battery capacity, mergers and restructuring, and curbs on improper local investment incentives.
China has released its 15th five-year development plan for the intelligent connected new energy vehicle (NEV) industry, setting a roadmap for 2026-2030 that prioritizes broader NEV adoption, autonomous driving and stronger capacity oversight.
By 2030, NEVs are targeted to account for 70% of domestic new passenger-car sales and 40% of new commercial-vehicle sales, with vehicles equipped with autonomous driving capabilities deployed at scale.
China’s Ministry of Industry and Information Technology (MIIT) published the plan on Friday. The document, dated September 9, was jointly issued by 9 government departments, including the MIIT, the National Development and Reform Commission and the Ministry of Transport.
The plan aims to further strengthen China’s advantages across the intelligent connected NEV supply chain and establish the country among the world’s leading automotive powers by 2030.
The document turns earlier policy signals into concrete targets. MIIT officials said in July that they would accelerate the plan’s preparation and release, helping fuel broad gains in Hong Kong-listed auto stocks at the time.
Autonomous driving is a central focus. China aims to achieve highly automated driving on highways, urban expressways and some city roads by 2030.
The plan also calls for vehicles equipped with autonomous driving systems to substantially outperform human drivers on safety, alongside mechanisms to assess the technology’s maturity and safety.
To advance commercialization, China will conduct demonstrations involving autonomous passenger cars, buses, long-haul logistics and urban delivery, while taking an orderly approach to vehicle approvals and road access.
Supporting infrastructure will also expand. The plan calls for faster digital and connectivity upgrades in key first- and second-tier cities and on selected national highways to support vehicle-road-cloud integration.
Alongside broader adoption, the plan explicitly calls for stronger capacity monitoring and controls, strict conditions for projects establishing new standalone NEV manufacturers, and tighter management of battery production capacity.
China will step up mergers, restructuring and cross-regional consolidation among automakers, using market-based and legal mechanisms to phase out outdated and inefficient capacity and improve overall utilization.
Oversight of market competition is another priority. The plan calls for stronger antitrust, unfair competition and pricing enforcement, as well as curbs on improper local efforts to attract investment through unauthorized subsidies, tax breaks and preferential land policies.
The document also calls for better oversight of industry data disclosures and corporate payments, action against improper market intervention, and faster development of a unified national market.
On technology, the plan identifies automotive chips, operating systems, industrial software and critical basic materials as areas where gaps need to be addressed. It also seeks further improvements in battery safety, charging rates and low-temperature performance.
China will also pursue an “AI+Automotive” initiative, promoting AI applications in vehicle energy management, motion control, human-machine interaction and predictive fault detection, while connecting vehicles with smart robots and smart homes.
By 2030, average electricity consumption for battery electric passenger cars is targeted at about 11.5 kWh per 100 kilometers, while average fuel consumption for passenger cars is targeted at 3.3 liters per 100 kilometers.
The plan also targets a 15% increase in labor productivity from 2025 and aims to foster several automakers ranking among the global top 10 by sales, along with suppliers among the world’s top 100.
For charging and battery swapping, China will improve infrastructure, plan the deployment of high-power charging facilities, strengthen rural charging networks and scale up vehicle-grid interaction.
New energy heavy-duty trucks will be another priority. The plan calls for cross-regional zero-carbon road freight corridors for these vehicles and demonstrations of autonomous heavy-duty trucks.
For overseas expansion, the plan supports international business development through trade, investment and technology partnerships. It encourages shared overseas warehouses for critical spare parts across brands and pilot cooperation on cross-border data flows.
The document also encourages Chinese and foreign companies to deepen cooperation on vehicle and key component research and investment, while requiring equal treatment of domestic and foreign companies in government procurement and other activities.
To implement the plan, China will maintain NEV tax incentives, support vehicle trade-ins, promote NEV adoption in rural areas, and back the replacement of city buses and their batteries. It will also deepen reforms to NEV insurance.
The new guidelines call on automakers to avoid frequent, steep overseas price changes and respect local dealers’ pricing autonomy.
