China has released a five-year plan aimed at establishing the country as a global automotive power by 2030, with new-energy vehicles, autonomous driving and artificial intelligence at the center of the strategy.
The plan, issued jointly by nine government departments including the Ministry of Industry and Information Technology, identifies intelligent connected new-energy vehicles as a core area of industrial transformation and a key part of China’s modern manufacturing system.
By 2030, new-energy passenger vehicles are expected to account for 70% of new passenger-vehicle sales in China, while new-energy commercial vehicles are projected to represent 40% of sales in their segment. Vehicles equipped with autonomous-driving functions are expected to achieve large-scale commercial application.
The plan calls for highly automated driving to operate on expressways, urban expressways and certain urban roads. It also sets efficiency targets, including average passenger-vehicle fuel consumption of 3.3 liters per 100 kilometers and average electricity consumption of about 11.5 kilowatt-hours per 100 kilometers for pure-electric passenger vehicles.
China aims to raise overall labor productivity in the automotive industry by 15% compared with 2025. It also plans to cultivate several vehicle manufacturers among the world’s 10 largest by sales, along with auto-parts companies ranked among the global top 100.
The strategy envisions stronger international brands and greater influence for Chinese companies in the development of global automotive standards and regulations. The government also expects the industry to reach peak carbon emissions before 2030 and accelerate the use of low-carbon processes throughout vehicle and component supply chains.
The plan outlines five broad priorities: strengthening technological innovation, upgrading the industrial system, promoting cooperation between the automotive and other sectors, improving industry governance, and expanding international cooperation. These priorities are supported by 17 measures and seven special projects.
Research efforts will focus on power batteries, fuel cells, low-carbon engines, intelligent chassis systems and vehicle connectivity. The plan calls for advances in steer-by-wire systems, active suspension, in-wheel motors and integrated electric-drive components.
Artificial intelligence will be used to develop vehicle-specific models and support cooperation between vehicles, roads and cloud systems. Authorities also plan to establish broader autonomous-driving test and evaluation systems, improve traffic-safety monitoring and build large databases of driving scenarios.
Further research will cover automotive operating systems, software, chips, sensors and advanced materials, including high-strength steel, aluminum and magnesium alloys, composite materials and specialized plastics. The plan encourages closer software and hardware development and wider use of industrial simulation tools.
To strengthen supply-chain resilience, China will target weaknesses in basic materials, operating systems, industrial software, automotive chips and key components. It also plans to coordinate the development, use and recycling of lithium, cobalt and nickel.
Artificial intelligence is expected to be integrated across vehicle research, manufacturing, supply, marketing and customer services. Planned applications include energy management, vehicle control, voice and multimodal interaction, predictive maintenance and personalized services. The strategy also promotes links between vehicles and products such as robots, smart-home devices and wearable technology.
Industry companies will be encouraged to build trusted data-sharing systems for manufacturing, autonomous driving, supply-chain management and safety assessment. The plan calls for the development of industry data standards, high-quality datasets and large-scale AI applications, with about 50 typical use cases targeted.
The strategy also emphasizes battery recycling, carbon-footprint management and digital identification systems for automotive batteries. China intends to participate more actively in international rules covering carbon emissions and carbon accounting.
To support consumers and businesses after vehicles are sold, the plan calls for better access to repair information, improved maintenance standards and stronger after-sales networks. It also identifies insurance, remote maintenance, roadside assistance, software subscriptions, vehicle modification, leasing and recreational vehicle services as areas for potential growth.
