China’s NEVs production estimated to reach 6.96 million units by 2025

According to Shanghai Metals Market, now that that the Chinese government is cutting subsidies, China’s credit system that rewards longer-range models will continue to boost the development of new energy vehicles (NEVs). By 2025, NEV production in China is expected to come in at 6.96 million units, among which passenger vehicles is likely to amount for most of the growth.

SMM expects pure electric vehicles to contribute to about 30 per cent of the annual increase in NEV production. Consumers’ favour towards plug-in hybrid vehicles is estimated to keep the output growth by about 15 per cent after the subsidy cuts, compared with a growth rate above 35 per cent before the cuts.

SMM further estimates the production of new energy buses to continue to decline in the long-term due to the saturated market.

Although the current demand for new energy special vehicles remains low, advantage from costs and wide applications of the models is likely to emerge after subsidies will phase out by 2020. This will expectedly bolster output growth of the models above 40 per cent by 2025, SMM expects.

An official from the Ministry of Industry and Information Technology had said in late January that production and sales of new energy vehicles (NEVs) across China would likely exceed 1.5 million tonnes in 2019.