China Aims for 25% Growth in Vehicle Sales by 2025

China’s Ministry of Industry and Information Technology predicts annual vehicle sales in the country will grow to 35 million cars, trucks and buses by 2025 from 28 million units in 2016.

The ministry also says it eventually intends to ease restrictions that currently limit foreign ownership in vehicle assembly companies to 50%, Reuters reports. The agency did not offer details or indicate when a change would come.

MIIT forecasts annual demand for “new energy” vehicles, boosted by government incentives and sales quotas, should reach about 7 million units, or 20% of the total, by then. Sales of plug-in hybrids and electrics accounted for 2% of China's vehicle market last year.

Citing improvements in the quality of Chinese-brand vehicles, MIIT anticipates that at least two such brands will break into the global top-10 producers by sales by 2025.