BUSINESS China sees its NEV industry in the fast lane

BUSINESS

China sees its NEV industry in the fast lane

Xinhua

07:40, August 10, 2021

File photo: GT

China, the world's biggest car market, has seen its new-energy vehicle industry enter the fast lane, powered by the country's low-carbon strategy and surging demand.

"The NEV industry is the integration of information technology and manufacturing," said Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers.

"Representing the trend of industrial development, the burgeoning NEV industry is also one of the key new drivers of the country's economic growth."

China has seen rising market enthusiasm for eco-friendly NEVs amid a government push and growing public awareness of environmental protection. More support and efforts are underway, with great potential ahead.

China's NEV industry has entered a new phase of development thanks to the country's clear policy signals on low-carbon growth and years of efforts in the sector.

The sector has seen greatly enhanced technical level, industrial system and enterprise competitiveness, which is shown by key indicators such as production and sales volume, and ownership of NEVs.

Half of global ownership

China's NEV market has been maintaining strong growth momentum. NEV ownership reached 5.8 million units by late May, accounting for about half of the global total, data by the CAAM showed.

The country's NEV sales reached 950,000 units in the first five months of 2021, 2.2 times that of the same period last year.

Growth of electric vehicle production and sales in the next five years is expected to remain above 40 percent, CAAM said.

Fuel consumption and emissions from traditional fuel-powered cars are tough challenges ahead for low-carbon growth.

The NEV sector is expected to help China attain carbon dioxide emissions peak before 2030 and carbon neutrality before 2060.

"New energy is the key to the transformation of the automobile industry. Continuously increasing NEV ownership will help China reach the goal of carbon neutrality," said Fu Bingfeng, executive vice president of CAAM.

In November, China unveiled a blueprint for its NEV industry between 2021 and 2035 to accelerate its transition to an automotive powerhouse.

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