China ICNEV Plan Sets 70% NEV Sales Target by 2030

China Sets 2030 Intelligent Connected NEV Industry Goals

China has released a new national development plan for the intelligent connected new energy vehicle (ICNEV) industry covering the 15th Five-Year Plan period from 2026 through 2030. The document was jointly issued by nine government departments, including the Ministry of Industry and Information Technology (MIIT), the National Development and Reform Commission (NDRC), and the Ministry of Public Security. The plan establishes a “1+4” framework that combines one overarching objective with four specific development targets. Its central ambition is to further strengthen the country’s position across the full ICNEV industry chain while advancing technology, industrial competitiveness, internationalization, safety, and the automotive sector’s broader economic and environmental contribution.

2030 NEV Sales and Automated Driving Targets

Under the overarching target, China aims to rank among the world’s leading automotive powers by 2030, with new energy vehicles accounting for 70% of total new passenger vehicle sales and 40% of total new commercial vehicle sales in the domestic market. The plan also calls for vehicles equipped with automated driving functions to be deployed on a large scale. These objectives place electrification and intelligent vehicle deployment at the center of the industry’s next five-year development cycle. The targets indicate that China intends to expand both the market penetration of NEVs and the practical adoption of automated driving technologies across relevant vehicle applications.

Technology Targets Cover Efficiency and Automated Driving

The plan calls for further advancement in key technologies, including improvements in vehicle energy efficiency and automated driving capabilities. By 2030, average passenger vehicle fuel consumption is targeted at 3.3 L/100 km, while average energy consumption for battery electric passenger vehicles is expected to reach around 11.5 kWh/100 km. Highly automated driving is also targeted for scenarios including expressways, urban expressways, and certain urban roads. Together, these objectives establish quantitative efficiency benchmarks while connecting technological progress with the broader deployment of intelligent connected vehicle functions. The plan therefore treats power efficiency and automated driving as important elements of the industry’s technical development through 2030.

Industry Structure and Global Competitiveness

The industry structure is expected to be further optimized during the plan period, with several vehicle manufacturers targeted to rank among the global top 10 and several automotive parts suppliers expected to rank among the global top 100. The plan also calls for a new landscape for international development, with enterprises strengthening their international operating capabilities and Chinese automotive brands building stronger reputations. In parallel, China is expected to gain a greater voice in the formulation of international standards and regulations. These objectives extend the plan beyond domestic vehicle sales and technology development toward greater global competitiveness for automakers and suppliers across the ICNEV value chain.

Economic, Environmental, and Safety Objectives

The plan identifies broader economic, environmental, and safety benefits as another major objective for the automotive industry. It calls for the industry’s role as a pillar of the national economy to be further strengthened, while targeting peak automotive industry carbon emissions before 2030 and accelerating the green and low-carbon transition of the supply chain. Safety is also a central focus, with the plan stating that vehicles equipped with automated driving systems will significantly outperform human drivers in terms of safety. These objectives connect industrial development with emissions reduction, supply-chain transformation, and improved road safety, making those outcomes integral parts of the industry’s planned development through 2030.

17 Key Tasks and Four Major ICNEV Projects

To support implementation, the plan establishes 17 key tasks across five areas, including strengthening technological innovation capabilities and promoting optimization and upgrading of the industrial system. It also identifies four major projects designed to build capabilities needed for the next stage of development. The projects cover key technology research and development for ICNEVs, standards and testing and evaluation capability enhancement, safety foundations for ICNEVs, and internationalization capability enhancement. This structure provides a framework for translating the plan’s high-level 2030 objectives into technology development, testing, safety, standards, and international operating capabilities across the industry.

Three Initiatives Support Industry Implementation

Beyond the four major projects, the plan outlines three key initiatives intended to accelerate implementation across important areas of the ICNEV ecosystem. These include the “AI + Automotive” Development Initiative, the Key Component Ecosystem Development and Leading Enterprise Cultivation Initiative, and the ICNEV Application Promotion Initiative. The combination of these initiatives with the plan’s technology, standards, safety, and internationalization projects creates a broad implementation framework covering artificial intelligence, critical components, leading enterprises, and vehicle applications. For China, the approach links technological development with industrial ecosystem building and wider deployment of intelligent connected new energy vehicles.

2030 ICNEV Development Targets

The plan combines market penetration, vehicle efficiency, industrial competitiveness, internationalization, environmental performance, and automated driving into a single development framework for the 2026–2030 period. The principal quantitative targets provide measurable benchmarks for assessing progress, while the supporting projects and initiatives establish mechanisms for technology development, testing, safety, internationalization, artificial intelligence, component ecosystems, and applications.

Industry Impact & Outlook

The plan is likely to shape investment and competitive priorities across China’s automotive value chain through 2030 because its targets span vehicle sales, efficiency, automated driving, industrial scale, supply-chain decarbonization, standards, and internationalization. Automakers and parts suppliers will face stronger pressure to improve technological capabilities while expanding their ability to compete internationally, while technology developers and testing organizations may see greater emphasis on automated driving, safety, and evaluation capabilities. The combination of quantitative targets and dedicated projects also provides a policy framework for continued development of intelligent connected NEVs, with progress ultimately depending on how effectively the stated tasks and initiatives are translated into industry implementation.

Frequently Asked Questions

What does the 15th Five-Year Plan target for China’s NEV market?
The plan targets new energy vehicles reaching 70% of new passenger vehicle sales and 40% of new commercial vehicle sales in the domestic market by 2030. It also calls for large-scale deployment of vehicles equipped with automated driving functions and further advances in energy efficiency. Passenger vehicle fuel consumption is targeted at 3.3 L/100 km on average, while battery electric passenger vehicle energy consumption is expected to reach around 11.5 kWh/100 km. The framework also addresses industrial competitiveness, international standards, supply-chain emissions, safety, technology development, and wider ICNEV applications.