China’s car sales are expected to reach 35 million in 2025, while new energy vehicles have a market share of at least 20%. The Ministry of Industry and Information said in the market "road map" that China's urbanization process and overseas expansion of local automakers will help boost annual sales by about 25% year-on-year.
China is currently the world's largest auto market, with 28 million units sold in 2016, and sales of electric and hybrid vehicles continue to grow. By 2020, the sales volume of new energy vehicles is expected to reach 2 million units, accounting for more than 20% of total vehicle production and sales by 2025. This means that the annual sales of new energy vehicles will exceed 7 million in the next decade. Green energy vehicle sales have risen sharply driven by government policies, but last year they accounted for less than 2% of total car sales in China.
Government agencies also said they would promote the creation of local champions in the industry. “The quality of China’s own-brand cars has risen markedly, and brand recognition, reputation and global influence are much stronger,†said the Ministry of Industry and Information Technology. "By 2025, China's own brands are expected to rank among the top ten in the world. China's domestic automakers, including SAIC and Geely Automobile Holdings, have begun to challenge well-known global competitors, new models and marketing strategies.
The Ministry of Industry and Information Technology added that the regulations on foreign joint ventures in the market will gradually loosen. At present, overseas automakers such as General Motors and Nissan Motor Co. only account for 50% of Chinese joint ventures. "We will orderly relax the ownership restrictions of the joint venture," the Ministry of Industry and Information Technology pointed out, did not specify the time frame or the shareholding ratio that foreign automakers may have.
The Ministry of Industry and Information Technology also added that Chinese automakers will also increase exports to developed countries in the next decade and improve battery technology for electric vehicles.
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