What Changes Will the Electric Vehicle Industry Experience with the New Strategic Plan?

The State Council of China has recently issued the "New Energy Vehicle Industry Development Plan (2021-2035)" to propel the electric vehicle (EV) industry toward a transformative future. This comprehensive plan outlines five strategic tasks to enhance the sector's framework.

Firstly, improving technical innovation capacity for electric vehicles and electric cars takes precedence. By emphasizing innovations in whole vehicle integration and critical components like power batteries and vehicle motors, the plan seeks to marry electrification with networking and intelligent technologies seamlessly.

Secondly, a new type of industrial ecosystem is to be established, led by eco-centric enterprises. The aim is to expedite the development and application of automobile operating systems, create an efficient battery recycling system, and ensure quality and safety. Thus, the plan fosters a symbiotic industrial landscape conducive to cooperation and shared benefits throughout the automobile and car dealer sectors.

The third goal focuses on promoting industrial integration. By embedding electric vehicle and electric car advancements more deeply into energy, transportation, and information communication sectors, the plan seeks to optimize energy consumption structures and elevate urban intelligence. This holistic approach to integration heralds a new cooperative development pattern in the automobile sphere.

Fourth, enhancing infrastructure systems is prioritized to pave the way for electric vehicle and EV expansion. Accelerating the construction of battery swapping, charging stations, and hydrogen refueling infrastructures will facilitate better connectivity and encourage innovative business models across the new energy car landscape.

Finally, the plan calls for deeper open cooperation. Embracing an ethos of open exchanges, mutual benefit, and win-win cooperation, the EV industry will engage in robust international exchanges in research design, trade investment, and technical standards. This global participation aims to buttress international competitiveness and ensure EVauto companies remain at the forefront.

Projected developments include an electrification surge by 2025, where approximately 20% of new car sales are expected to be new energy vehicles. By 2035, pure electric cars will dominate the market, heralding a public sector fully transitioned to electric vehicles, further integrated with charging and energy solutions.