Policy Landscape

2025 China New Energy Vehicle NEV Policy Landscape Unprecedented Growth

Signs of Overheating

Market Penetration

Irrational Competition Emerges

8.2M NEV Sales

107% – 2024 average combined ratio for NEV Insurers indicating significant underwriting losses and disorder

7 Months of 2025 Nearly half of all new car sales

A Shift in Policy Focus

Future-Proofing the Industry

From Scale to Quality

Alignment and Focus

Government regulating industry

Focus on core tech & global standards

New plans emphasizing:

Cost

Monitoring & Production Consistency

Curbing Disorderly Healthier Development

Aligning with international regulations

Key Policy Pillars 1. Lower Ownership Barriers Jan

Reform NEV insurance through risk-based pricing, universal insurability, and innovative products

Reduce premium burden; stabilize consumer confidence 2. Strengthen Green & Supply-Chain Sustainability Feb

Enhance power battery recycling and utilization

Support green upgrading of NEV and intelligent vehicle industries 3. Build Standards for Emerging Technologies Apr

Accelerate standards for AI in vehicles, solid-state batteries, battery swapping

Reinforce NEV safety, automotive chips, and low-carbon standards 4. Normalize Market Competition Jul

Curb irrational price competition (“anti-involutionˮ)

Strengthen cost/price monitoring and supplier payment discipline 5. Confirm Market Maturity Aug

NEV sales > 8.2M units Jan–Jul); penetration 45%

2025 national NEV penetration target achieved ahead of schedule 6. Anchor Medium-Term Growth Sep

2025 NEV sales target: 15.5M units 20% YoY

Expand public-sector NEV adoption, trade-in programs, battery-swapping models

Continue tax incentives and insurance reforms

Source: https://www.gov.cn/zhengce/zhengceku/202501/content_7001024.htm, https://www.gov.cn/zhengce/202501/content_7001028.htm https://www.gov.cn/zhengce/202502/content_7003408.htm, https://www.gov.cn/zhengce/202502/content_7004966.htm, https://www.gov.cn/yaowen/liebiao/202502/content_7005430.htm, https://www.gov.cn/lianbo/bumen/202504/content_7021759.htm, https://www.gov.cn/zhengce/202507/content_7032374.htm, https://www.gov.cn/yaowen/liebiao/202507/content_7034074.htm https://www.gov.cn/yaowen/liebiao/202508/content_7036200.htm, https://www.gov.cn/zhengce/202509/content_7040551.htm

Extracted from the PDF; charts and images may read imperfectly.