China Intelligent Connected New Energy Vehicle Plan to Boost Automotive Consumption

China has announced a series of policy initiatives designed to strengthen automotive consumption while advancing the country's next phase of vehicle technology development. During a press conference organized by the State Council Information Office (SCIO) on June 23, the Ministry of Industry and Information Technology (MIIT) presented its strategy to support industry growth through technology advancement, industrial upgrading, market reforms, and consumer-focused initiatives. The measures are intended to reinforce the competitiveness of China's automotive sector while creating a stable and fair business environment.

New Five-Year Development Strategy for the Automotive Industry

The MIIT confirmed that work is being accelerated on the formulation and release of the 15th Five-Year Plan (2026–2030) dedicated to the development of the Intelligent Connected New Energy Vehicle (IC-NEV) industry. The upcoming roadmap is expected to guide the industry's long-term transformation by supporting industrial modernization, technological progress, and continued upgrading across the automotive value chain. The plan reflects China's commitment to maintaining momentum in next-generation vehicle development over the coming five years.

Focus on Next-Generation Automotive Technologies

As part of its strategy, the ministry will intensify efforts to overcome critical technological challenges affecting the automotive industry. Priority areas include accelerating the industrialization of next-generation power batteries, automotive chips, vehicle operating systems, and autonomous driving technologies. By advancing these core technologies, the government aims to encourage greater innovation while ensuring that technological progress delivers practical benefits to consumers through improved products and enhanced vehicle capabilities.

Measures to Stimulate Vehicle Consumption

Alongside technology initiatives, the government will fully implement its automotive industry growth stabilization plan. The MIIT will work closely with the Ministry of Commerce and other government departments to advance pilot reforms covering vehicle circulation and consumer purchasing. Authorities will also continue promoting the nationwide vehicle trade-in program to encourage replacement purchases, stimulate consumer demand, and unlock additional market potential across the automotive sector.

Maintaining a Healthy Market Environment

Officials also emphasized their commitment to preserving the positive outcomes achieved through previous industry policies. Future efforts will focus on maintaining a healthy, orderly, and fair market environment that supports sustainable industry development while providing confidence for manufacturers, suppliers, and consumers participating in China's evolving automotive market.

Frequently Asked Questions

What is the purpose of the 15th Five-Year Plan for the IC-NEV industry?
The plan is intended to guide China's Intelligent Connected New Energy Vehicle industry between 2026 and 2030 through coordinated industrial development, technology advancement, and market modernization. It aims to promote industrial transformation and upgrading while supporting innovation in critical automotive technologies, strengthening the competitiveness of the sector, and creating long-term growth opportunities that ultimately benefit both manufacturers and consumers.

Which automotive technologies will receive priority under the new measures?
The government will prioritize technologies that are considered essential for the future competitiveness of the automotive industry, including power batteries, automotive chips, operating systems, and autonomous driving. Accelerating the industrialization of these technologies is expected to improve innovation, strengthen domestic capabilities, and enable advanced vehicle features to reach consumers more efficiently while supporting sustainable growth across the industry.

How does the vehicle trade-in program support automotive consumption?
The vehicle trade-in program encourages consumers to replace existing vehicles with newer models, helping stimulate market demand while supporting broader industry growth. Through coordinated reforms involving multiple government departments, the initiative seeks to improve vehicle circulation, expand purchasing opportunities, unlock additional market potential, and reinforce a healthy and orderly automotive marketplace that benefits consumers and industry participants alike.