New-Japan Business Consulting
Business strategy reports, business matching and M&A in Japan


China’s 100 People’s Association for Electric Vehicles holds annual meeting; NEV market expansion prospects and challenges remain

The annual general meeting of the 100 People’s Association for Electric Vehicles, a government-affiliated think-tank promoting electric vehicles in China, was held from 31 March to 2 April. At the AGM, there were many optimistic statements that China’s NEV industry growth will continue in 2023, and it is widely believed that China’s NEV sales will expand from 7 million units in 2022 to 8.5-9 million units in 2023. On the other hand, there are indications that the NEV industry still faces many challenges, such as BYD President Wang Denfu’s proposal to extend the purchase tax exemption to 2025, and former Ministry of Science and Technology Director Wan Gang pointing out that the NEV rate for commercial vehicles is still low.

As the world’s largest Chinese car market moves towards electrification, smartness and decarbonisation, attention is increasingly focused on China’s car industry policy, technology roadmap, business strategies and development trends of major manufacturers and component suppliers.
 China aims to achieve a vehicle sales volume of 40 million units by 2035 (of which more than 50% will be New Energy Vehicles (NEVs)), and with the NEV market expected to grow further, foreign manufacturers, which had been lagging behind, are now beginning to launch their products in earnest. In addition to improved driver assistance performance, an increasing number of models are equipped with digital cockpits featuring new technologies such as voice and gesture control and facial recognition.
 The Chinese Government has set the goal of achieving peak carbon dioxide emissions by 2030 and carbon neutrality by 2060. The automotive industry is also moving towards low-carbon production processes, and it is expected that efforts towards carbon neutrality will be in full swing from now on.
The focus is also on areas such as the NEV market, where China is ahead, automated driving and digital cockpits. In addition, industry, policy and market reports, including laws and regulations related to the Chinese automotive industry, are included from time to time.
 Statistics and data include production and shipments by vehicle type, production and shipments by passenger car model and vehicle production and shipments by manufacturer on a monthly basis, obtained from the China Association of Automotive Manufacturers (CAAM).