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Caixin Global
Caixin Global
Guo Yingzhe

China Launches Pilot to Make Most ‘Public’ Vehicles NEVs

What’s new: China has launched a pilot program with the goal of making new-energy vehicles (NEVs) account for 80% of “public” vehicles in select cities by 2025.

Under the program, provincial authorities will choose several cities that will receive subsidies to participate, according to a document published Friday by eight central government departments.

The selected cities should promote cutting-edge technologies such as automatic power charging and build more new-energy infrastructure to help them replace older fossil fuel vehicles with NEVs, the document said.

The context: The government definition of “public” vehicles is broader than those typically considered part of the public sector. When referring to these vehicles, the document highlighted public buses and cars used by officials, but also taxis and vehicles used to deliver packages, as well as trucks used in logistics and mining.

In China, NEV is an umbrella term for electric vehicles, hybrid vehicles and hydrogen fuel-cell vehicles.

Last year, NEV sales soared 90% due in part to government incentives such as subsidies and tax breaks, making it one of the few industries to maintain growth despite the disruptions caused by Covid-19 lockdowns and other restrictions. But the market slowed at the start of 2023, with EV and hybrid passenger car sales on the wholesale market in January plunging 45% from the previous month, according to data from the China Passenger Car Association (CPCA), an industry group.

Related: In Depth: China’s NEV Sales Took Off in 2022, but Some Firms Pulled Way Ahead

Contact reporter Guo Yingzhe ( and editor Michael Bellart (

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