China Targets 7 Million Annual NEV Sales by 2025

The Chinese government is targeting annual sales of electric and plug-in cars at 7 million units by 2025, nine times last year’s volume and up from an earlier target of 5 million.

Sales of so-called new-energy vehicles (NEVs) in the country jumped 53% to 777,000 units in 2017 and are likely to reach at least 1 million this year, according to the China Assn. of Automobile Manufacturers. CAAM predicts annual NEV sales will reach 2 million units by 2020.

To help support the burgeoning fleet, the State Grid Corp. of China says it will install 120,000 public charging stations across China within two years.

China’s central government has ruled that NEVs must account for 12% of passenger vehicle sales by 2020 and 20% by 2025. The quotas already have spawned at least 125 NEV models.

Actual sales are being driven by government subsidies, which can reach 110,000 yuan ($16,700) for a long-range, all-electric car. To qualify for any incentive, a Chinese NEV must be able to travel at least 150 km (93 miles) using electric power alone.

CAAM says China has accounted for more than 60% of annual worldwide NEV sales over the past three years. The group calculates the global market last year at 1.22 million vehicles.