China targets EVs and hybrids at 70% of new car sales by 2030

RegulationIndustry Impact 4
โดย Money & Banking·CN·Read original
Summary · why it matters

China aims for 70% of new vehicles sold in the country to be electric or hybrid by 2030 under its latest five-year automotive industry plan, drafted by nine government agencies and published on Friday. The 15th Five-Year National Economic and Social Development Plan also targets 40% of new commercial vehicles sold by 2030 to be electric, while expecting several Chinese automakers to rise into the world's 10 largest carmakers and to play a bigger role in setting global automotive industry standards. Currently, BYD, SAIC Motor and Geely Automobile rank among the world's 10 largest automakers by sales last year, but still lag the top three of Toyota Motor, Volkswagen and Hyundai Motor Group. The previous plan in 2021 had targeted EVs and hybrids at 20% of new car sales by 2025, but China far exceeded that goal, with data from the China Passenger Car Association showing the share rose to 54% last year, and new energy vehicles most recently accounting for 65% of car sales in August. Although the plan sets no numerical target for autonomous driving cars, its emphasis on expanding the use of driverless vehicles is a positive signal for the industry, after China suspended approval of new Robotaxi permits for several months this year following system failures in Baidu's vehicles in Wuhan. China's domestic car market is facing challenges, with car sales in the first eight months of this year down 21%, while a prolonged price war erodes manufacturers' profit margins. Beijing has therefore issued more than half a dozen new standards and regulations, covering everything from door handles and driver-assistance technology to batteries, to raise safety levels, and said in the plan that it wants to push forward reform of automakers, encourage mergers and acquisitions, and open the way for inefficient manufacturers to exit the market to ease the industry's overcapacity problem. Battery technology and recycling are another key agenda item, with the plan calling for standards for new forms of battery cell technology such as solid-state batteries, as well as improving the recovery and reuse of key metals including lithium, cobalt and nickel.

Impact on stocks 7

Electrification & Mobility▲ · 4 stocks
Geely Automobile Holdings Ltd
0175
▲ PositiveRegulationrelevance

China's five-year plan targets 70% EV/hybrid new-car sales by 2030 and expects Chinese automakers like Geely to rise into the world's top 10, boosting its outlook.

Consumer Discretionary▲ · 1 stocks
Others▲ · 2 stocks
BYD Co Ltd Class A
002594
▲ PositiveRegulationrelevance

China's 2030 EV/hybrid sales target and support for leading Chinese automakers benefit BYD, already a top-10 global automaker.

SAIC Motor Corp Ltd
600104
▲ PositiveRegulationrelevance

The plan's 70% EV/hybrid target and push for Chinese automakers to enter the global top 10 favor SAIC, already among the world's 10 largest.

Theme Impact 6

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