Eight Ministries Issue Auto Industry Stability Plan Targeting 32.3 Million Vehicle Sales in 2025

Eight government bodies, led by the Ministry of Industry and Information Technology, recently published the “Auto Industry Growth Stabilization Work Plan (2025–2026),” marking the third such plan since the latest round of stabilization measures for ten key sectors began implementation. The plan establishes clear targets for 2025: total vehicle sales of approximately 32.3 million units, a 3 percent increase year-on-year; new energy vehicle (NEV) sales of around 15.5 million units, up 20 percent; stable growth in auto exports; and a 6 percent rise in the added value of the auto manufacturing industry.

Officials from the Ministry of Industry and Information Technology described these objectives as both realistic and achievable, emphasizing that the plan’s strength lies in its pragmatic approach. Organized around four strategic pillars—expanding domestic consumption, enhancing supply quality, optimizing the development environment, and deepening open cooperation—the plan details more than 60 specific measures, supported by 15 key initiatives and three safeguard mechanisms.

According to Wei Qijia, Director of the Industrial Economics Research Office at the State Information Center’s Economic Forecast Department, the plan injects fresh momentum into the sector by prioritizing both volume stability and quality improvement. The target of 6 percent growth in manufacturing added value serves as a hard constraint on efficiency and quality. By promoting the introduction of industrial robots and comprehensive digital systems, the plan seeks to accelerate intelligent upgrades, break through production-capacity bottlenecks, and unlock new product value.

The NEV growth goal of 20 percent is designed to reallocate production resources across the industry. This will prompt vehicle manufacturers to retrofit existing lines, strengthen coordination within key supply chains—particularly for batteries and chips—and bolster the overall resilience of the automotive ecosystem.

Expanding domestic consumption stands as the plan’s foremost priority. To that end, pilot programs for full electrification of public-sector fleets in 25 cities will aim to deploy over 700,000 NEVs in urban buses, taxis, and logistics vehicles. Rural outreach will continue, focusing on NEV promotion and the construction of charging and battery-swap facilities at the county level. The plan further calls for deeper NEV insurance reform to optimize commercial base rates, full implementation of vehicle purchase and vessel tax exemptions, and support for trade-in schemes alongside urban bus upgrades and power-battery renewals. In regions with vehicle purchase restrictions, local authorities are encouraged to refine policies and transition from purchase controls to usage management. Finally, trials for intelligent connected vehicle access and road operations will advance, with conditional production approvals for Level 3 autonomous vehicles where feasible.

On the topic of easing purchase restrictions, Wu Songquan, Senior Chief Expert at the China Automotive Technology and Research Center, noted that the combination of evolving market conditions, environmental governance advances, and forthcoming adjustments to fiscal incentives—such as the expected end-of-year revision of NEV purchase tax exemptions—creates an opportune moment to lift or scale back broad purchase and traffic restrictions. He recommends developing more comprehensive, scientifically grounded alternative measures by drawing on international experience.

Wei Qijia highlighted the plan’s concrete steps to unlock NEV consumption potential in less served areas. The initiative to deploy charging and battery-swap infrastructure throughout all townships in counties underscores the effort to activate new demand in rural regions.

Addressing consumer concerns over high insurance costs and coverage difficulties, the plan proposes further reform of NEV insurance, optimizing commercial rate structures to lower total cost of ownership and increase buyer willingness.

Ministry officials also praised the plan’s innovative logic of using high-quality supply to both guide and create demand. By leveraging technological innovation to stimulate latent consumer interest, upgrading standards to enhance product quality, and accelerating digital and intelligent transformation across the industry, the plan seeks to generate sustainable market growth.

Finally, the plan outlines reforms to vehicle access management and the group management of automakers, along with measures to regulate competitive order within the sector. These steps aim to boost resource-allocation efficiency and foster a more conducive environment for the auto industry’s long-term development.