China wants vehicle market of 35 million by 2025
China’s Ministry of Industry has released its vehicle sales targets for 2025. By that time, the country wants to hit a total of 35 million vehicles, one-fifth of which so-called new-energy vehicles (EVs and PHEVs).
According to the Market Road Map released by the Ministry, the continuing urbanisation in China will boost annual vehicle sales by 25%, compared to last year’s total of 28 million units.
Via a combination of subsidies and sales quotas, the country is aggressively pushing for electric vehicles (EVs) and plug-in hybrids (PHEVs) to make up an increasing share of that rising figure.
EV and PHEV sales are projected to hit 2 million by 2020 and – if they are to comprise 20% of projected overall sales by then – 7 million by 2025.
Automakers are struggling to develop and produce new-energy vehicles to meet government requirements, but while EV and PHEV sales have increased dramatically, last year they still represented less than 2% of China's overall light vehicle market.
The Ministry also emphasised its push to develop local brands to take on the foreign brands as yet dominant on the Chinese auto market. By 2025, the Ministry said, some Chinese brands should have cracked the sales top ten.
On the other hand, China is also considering relaxing the rules on joint ventures – at present, foreign manufacturers can own no more than a 50% stake in a Chinese joint venture. However, the Ministry did not specify which additional percentage foreign manufacturers would be able to acquire, nor when that would become possible.
Image: public domain
| 28/04/2017 | Frank Jacobs