China NEV Industry Plan Targets Quality, Safety and Recycling

China’s NEV Industry Enters a New Development Phase

On August 26, the State Council Information Office of China held a press conference on efforts to implement the 15th Five-Year Plan for 2026–2030 and accelerate new industrialization. An official from the Ministry of Industry and Information Technology said the China NEV Industry expanded sharply during the 14th Five-Year Plan period from 2021–2025. Annual NEV sales increased from 1.367 million units to 16.49 million units, while NEVs’ share of new vehicle sales climbed from 5.4% to 47.9%. The development highlights the rapid expansion of the sector and its growing importance within China’s broader industrial strategy.

China Strengthened Its Global NEV Position

During the 14th Five-Year Plan period, the industry system continued to improve, with vehicle integration, power batteries, and LiDAR reaching world-leading levels. China accounted for more than 70% of global production of NEVs, power batteries, and key materials. The country’s international influence also increased as its NEV products reached more than 100 countries and regions. The period produced a number of highly competitive industry leaders, reinforcing the sector’s position across global automotive markets. These developments provide the industrial foundation for the next phase of policy focused on quality, governance, safety, infrastructure, and international cooperation.

New Plan Targets Product Quality and Vehicle Safety

To address challenges including irrational competition, insufficient testing of some innovative vehicle designs, vehicle quality concerns, and autonomous driving safety, the Ministry of Industry and Information Technology has formulated the 15th Five-Year Plan for the Development of the Intelligent Connected New Energy Vehicle Industry. The plan focuses on four areas: improving product quality, optimizing the supporting environment for vehicle use, improving the automotive industry governance system, and deepening international cooperation and exchanges. The approach signals a stronger emphasis on controlled, validated, and sustainable industry development rather than expansion based solely on sales growth.

Technology Development and Intelligent Vehicle Pilots

The plan calls for support for key companies to increase technological research and development, particularly in improving the low-temperature performance and durability of power batteries and strengthening the safety and reliability of automated driving. It also advances pilot programs covering market access and on-road operation of intelligent connected vehicles, together with vehicle-road-cloud integration initiatives. These measures are intended to encourage technological progress while increasing validation and operational oversight. The combination of battery development, automated-driving safety, and connected-vehicle pilots reflects the plan’s effort to support innovation while addressing risks associated with rapidly introduced automotive technologies.

Trade-In Programs and Rural NEV Deployment

The development plan also addresses the supporting environment required for broader NEV adoption. Measures include vehicle trade-in programs, initiatives to promote NEVs in rural areas, and pilot programs designed to address gaps in charging and battery-swapping infrastructure in counties. These actions are intended to expand access to supporting infrastructure beyond major urban markets and improve the practicality of NEV ownership in less-developed areas. By combining demand-side measures with infrastructure development, the policy framework seeks to support wider market adoption while addressing geographic differences in charging and battery-swapping availability.

Stricter Testing, Market Access and Industry Governance

The MIIT plan proposes stronger market access reviews and tighter management of testing and validation for innovative product designs. Products that have not undergone sufficient testing and validation will be prohibited from entering the market, while supervision and inspections of production conformity will be strengthened. The measures are designed to protect consumers’ legitimate rights and interests and further regulate competition across the industry. This governance focus directly addresses concerns over irrational competition and vehicle quality, while establishing greater scrutiny for new designs and technologies before they reach customers. The policy therefore links innovation with stronger compliance and validation requirements.

International Standards and Industry Cooperation

International cooperation is another component of the 15th Five-Year Plan. The measures call for stronger coordination in the development of international standards and regulations, alongside improved support systems for cross-border logistics and investment and financing. These initiatives are relevant to an industry whose products are already sold in more than 100 countries and regions. Greater coordination on standards and regulations could support international market participation while improved logistics and financing systems could facilitate cross-border industrial activity. The approach also seeks to deepen international exchanges as China continues developing its NEV industry and expanding its global influence.

Battery Recycling and Digital Traceability by 2030

The plan also addresses the large-scale retirement of NEV power batteries expected during the 15th Five-Year Plan period. The MIIT will study and draft relevant administrative regulations, conduct special joint enforcement campaigns involving multiple government departments, and further regulate battery recycling and utilization. A digital identification system for power batteries will also be implemented so that battery sources and destinations can be traced. By 2030, China aims to achieve comprehensive utilization of more than one million metric tons of waste power batteries. The measures establish battery lifecycle management as a significant element of the industry’s next development phase.

Frequently Asked Questions

What does China’s 15th Five-Year Plan mean for the NEV industry?
The plan shifts greater attention toward product quality, vehicle safety, infrastructure, industry governance, international cooperation, and battery lifecycle management as China’s NEV market enters a more mature development phase. It supports research into power-battery performance and automated-driving safety, expands intelligent connected vehicle and vehicle-road-cloud integration pilots, strengthens testing and market access reviews, and promotes charging and battery-swapping infrastructure in counties. The plan also introduces stronger battery recycling oversight and digital traceability, with China targeting comprehensive utilization of more than one million metric tons of waste power batteries by 2030.