China’s NEV Sector in the Fast Lane
China’s new energy vehicle (NEV) sector has witnessed an astounding growth in recent times and has entered the fast lane. Riding the waves of green transition, it is now geared up to play a bigger role in upgrading the global auto industry. In China, the term NEV is used to designate vehicles including battery-electric, plug-in hybrid, and fuel cell vehicles.
Latest data showed that China’s sales of NEVs topped 11.08 million units as of the end of May 2022. Back at the end of 2012, the figure stood at only 20,000 units. Globally, the country has ranked first in terms of production and sales of NEVs for 7 straight years since 2015, leading efforts in transforming the global auto industry. Fu Bingfeng, Secretary General of the China Association of Automobile Manufacturers, attributed the rapid expansion of China’s NEV market to sustained policy support, growing market acceptance and technological innovation over the past decade.
The boom in China’s NEV market comes as it seeks to decarbonize the transport sector in order to meet the goal of peaking carbon dioxide emissions before 2030 and achieving carbon neutrality before 2060. In its latest move to push green transportation, China has pledged to promote NEVs in public transportation and set a target of increasing the share of NEVs in aggregate car sales to around 20% by 2025, according to a 5-year energy development plan unveiled in March.
Such policy support has been central to the takeoff of the NEV sector of the world’s second-largest economy. Over the past decade, more than 600 supporting policies have been rolled out by central and local governments, covering technological innovation, promotion and application, security and other aspects, said Xin Guobin, the Vice Minister of China’s Industry and Information Technology.