China sets 2030 target to dominate global electric vehicle market with new industrial plan

China has unveiled a comprehensive five-year blueprint to cement its position as a global automotive powerhouse by 2030, introducing a capacity alert mechanism to prevent destructive overcapacity while driving domestic sales and technological breakthroughs.

The Ministry of Industry and Information Technology, together with eight other ministries, released the 15th five-year plan for the intelligent connected new-energy-vehicle industry on Thursday. The strategy targets both battery-powered electric vehicles and plug-in hybrid models under the new-energy category.

Shoring up supply chains and automation

The plan calls for China to strengthen its complete industrial supply-chain capabilities in the sector while preparing for large-scale deployment of vehicles equipped with automated driving functions. The document declares that by 2030, "the automotive sector will solidify its standing as a key pillar of the national economy".

Alongside growth targets, Beijing will introduce a capacity alert mechanism designed to guard against disorderly competition and avoid what officials term "involution effects", a reference to internal industry strife that erodes profitability without generating real value.

Tackling structural headwinds

Cui Dongshu, secretary general of the China Passenger Car Association (CPCA), described the timing of the plan as "well judged," noting that the auto industry is undergoing structural transformation. "Total domestic sales are declining, as market leadership shifts from gasoline-powered passenger vehicles to electric cars," he said.

CPCA data showed around 1 million electric passenger vehicles were sold domestically in August, down 10.1 per cent from a year earlier. Total sales in the January-August period fell 12.1 per cent year on year.

The plan seeks to reverse these near-term declines by boosting domestic market demand and fostering technological innovation, positioning the new-energy segment as the engine of recovery.

Source: South China Morning Post