China has updated its automotive industry development strategy and set a new ambitious goal for the market: by 2030, 70% of new passenger car sales should come from electric vehicles and hybrids. For commercial vehicles, the bar is noticeably lower, but also high — the share of cars powered by new energy should reach 40%.
The plan was developed by nine government departments. In addition to the growth in sales of "green" cars, the document separately outlines the expansion of the use of autonomous driving. The authorities did not name specific quantitative guidelines in this direction, but the course towards accelerated technology adoption is obvious.
Another task is to strengthen the position of Chinese brands in the global market. The authorities expect that a number of local automakers will become one of the ten largest manufacturers in the world, which means they will be able to actively influence international technical and industry standards.
The new benchmark looks achievable: China has already exceeded the previous target of a 20 percent share of electric vehicles and hybrids by 2025. According to industry sources, the figure reached 54% last year and rose to 65% in August. This means that the current plan can be completed ahead of schedule.
However, the market still has serious problems. In the first eight months of this year, domestic car sales decreased by 21%, and competition, which escalated into a price war, severely reduced manufacturers' margins. Against this background, pressure on companies has increased, as well as concerns related to the safety and quality of manufactured machines.
In order to reduce the overheating of the industry and remove weak players, the government intends to deepen the reform of automakers, stimulate consolidation and accelerate the withdrawal of inefficient companies from the market. At the same time, the authorities are tightening regulation: new requirements have already been introduced for door handles, driver assistance systems and batteries.
A special emphasis is placed on batteries. The priority is standards for new technologies, including solid—state batteries, as well as improved recycling to more efficiently extract strategically important metals from spent batteries, primarily lithium, cobalt and nickel.