China's new energy vehicle sector: Where are we now and what's ahead? - CGTN

Editor's note: Wang Zhongying is the director general of the Energy Research Institute of the National Development and Reform Commission of China. Liu Jian is an associate researcher at the same institute. The article reflects the authors' opinions and not necessarily those of CGTN.

Under the initiative to achieve the country's peak carbon emissions by 2030 and carbon neutrality by 2060, the new energy vehicle (NEV) industry in China carries an important historic mission on its shoulders. It is not only a pillar industry for economic development but also a major force for rewriting the history of China's automobile manufacturing industry and building a low-carbon future.

China is the world's largest auto market, with nearly 30 million vehicles produced and sold annually. But nearly 90 percent of them are fossil-fuel-powered vehicles. It is now a global consensus to take the path of eco-friendly and low-carbon development.

It is expected that in about 10 years, fossil-fuel-powered vehicles will have given up half of their market share to NEVs, and by 2040, mainstream manufacturers will no longer sell vehicles powered by fossil fuels. Therefore, the development of NEVs, especially electric vehicles, has brought new opportunities for the development of China's automobile manufacturing industry.

After more than a decade of development, China is now the world's largest market for NEVs. In 2020, more than 10 million NEVs were in circulation worldwide, and China accounted for nearly half.