China sets goals for intelligent connected new Energy vehicle industry

Editor's note: Li Hongchang is a researcher at the Sustainable Transportation Innovation Center and professor at the School of Economics and Management, Beijing Jiaotong University.

Liu Ziyi is a PhD student at the School of Economics and Management, Beijing Jiaotong University.

The article reflects the authors' opinions and not necessarily the views of CGTN.

The 15th Five-Year Plan for the Development of the Intelligent Connected New Energy Vehicle Industry (2026–2030) serves as a national, medium- to long-term specialized policy document for China's intelligent connected new energy vehicle (ICNEV) sector.

It delineates the strategic direction of industrial development, key technical indicators, market objectives, and the supporting governance framework.

The plan establishes milestone targets for 2030: an average energy consumption of approximately 11.5 kWh/100 kilometers for battery electric passenger vehicles, a 70% market share for new energy passenger vehicle sales, and a 40% market share for new energy commercial vehicle sales.

The document outlines tasks across five strategic dimensions: technological innovation, industrial upgrading, infrastructure development, safety regulation, full lifecycle management of power batteries, and external opening-up.

These measures aim to drive the green transformation of the automotive industry, with the objective of achieving carbon peaking in the sector before 2030 and facilitating the implementation of the national dual carbon strategy.

First, electric vehicles (EVs) demonstrate a significant advantage in energy costs.

The plan sets a certified test-cycle average target of 11.5 kWh/100 kilometers for battery electric passenger vehicles by 2030.

Based on a residential slow-charging tariff of 1 yuan/kWh, the electricity cost per 100 kilometers is calculated at 11.5 yuan.

For comparison, assuming a traditional internal combustion engine vehicle achieves a fuel economy of 8 liters per 100 kilometers with a fuel price of 8 yuan per liter, the fuel cost per 100 kilometers amounts to 64 yuan.

Under these assumptions, the energy cost for EVs is approximately one-fifth of that for conventional fuel vehicles.

The above figures represent an estimation of energy costs only and exclude vehicle depreciation, maintenance, and other expenses.