The Ministry of Industry and Information Technology will launch a pilot program for the comprehensive electrification of vehicles in public sectors across selected cities.

        “Further enhancing the lithium, cobalt, and nickel security system, launching pilot programs for full electrification of vehicles in public-sector cities, and accelerating the industrialization of automotive-grade chips”—these were the next steps in the Ministry of Industry and Information Technology’s (MIIT) policy direction, as introduced by Vice Minister Xin Guobin at the opening ceremony of the 17th China Automotive Industry Development (TEDA) International Forum. Xin emphasized that this year marks the beginning of the 14th Five-Year Plan, making it crucial to effectively advance the development of China’s automotive industry moving forward.
According to Xin Guobin, the Ministry of Industry and Information Technology will formulate policies tailored to the current state of China's automotive industry, focusing on the following key areas: First, comprehensively accelerating a series of policy measures to boost the development of new-energy vehicles, while further strengthening the security system for lithium, cobalt, and nickel. Second, leveraging the trends toward electrification, connectivity, and intelligent technologies, the ministry will simultaneously advance the improvement of infrastructure, data platforms, and standard regulations—working in tandem to promote the advancement of smart electric vehicles, intelligent road systems, communication networks, and cloud-based control technologies. Additionally, pilot programs will be launched in select cities to fully electrify vehicles in the public sector, and industry organizations will be tasked with drafting and releasing a technology roadmap for low-carbon development in the automotive industry.
The Ministry of Industry and Information Technology previously outlined the "Action Plan for Promoting Electric Vehicle Adoption in the Public Sector," which proposes that by 2035, all vehicles used in China's public sector—such as buses, urban logistics vehicles, and sanitation sweepers—will be fully electrified. However, judging from the current situation, the full electrification of public-sector vehicles will first involve pilot programs before being rolled out on a larger scale.
Xin Guobin stated that China's automotive industry is steadily improving and showcasing remarkable achievements. First, production and sales have maintained stable growth. Preliminary statistics indicate that from January to August this year, automobile production and sales are expected to surpass 16 million vehicles, representing a year-on-year increase of around 10%. Meanwhile, from January to July, whole-vehicle exports reached 1 million units, up 124% compared to the same period last year. Second, new energy vehicles and intelligent connected cars continue to experience rapid development. From January to August this year, the production and sales of new energy vehicles are projected to exceed 1.7 million units, doubling compared to the same period last year, with market penetration surpassing 10%. Additionally, Level 2 intelligent connected vehicles now account for 20% of the overall market share. Finally, technological innovation has made significant strides. Fast-charging technology now enables vehicles to gain an additional 200 kilometers of range after just 5 minutes of charging. Meanwhile, sodium-ion batteries have achieved a breakthrough, delivering energy densities exceeding 160 watt-hours per kilogram, paving the way for industrialization and providing vital momentum for the sustainable growth of the industry.
Previously, the China Association of Automobile Manufacturers estimated, based on data from key enterprises' ten-day reports, that domestic auto sales in August reached 1.711 million vehicles—down 8.2% from the previous month and a significant 21.8% drop compared to the same period last year. Meanwhile, for January through August this year, total domestic auto sales are projected at 16.467 million vehicles, representing a robust 13.1% increase year-on-year.
Xin Guobin stated, "Overall, China's automotive industry has maintained strong growth momentum in the first eight months of this year. However, we must also clearly recognize that both domestic and international situations remain complex and challenging, with increasing instability and uncertainty. As a result, the industry faces numerous difficulties and challenges—some longstanding issues persist, while new developments have emerged. It is crucial to strengthen our analysis and assessment, and carefully explore effective responses." First and foremost, some long-term problems continue to linger, particularly the issue of Chinese-brand cars being large in scale but lacking in quality and competitiveness.
Xin Guobin stated that this is primarily reflected in the following: a large number of enterprises and fragmented resource allocation. In particular, the widespread and extensive nature of vehicle modifications means that management reforms have yet to be fully implemented. Meanwhile, some regions and industries still suffer from low capacity utilization rates, and the industrial chain continues to face critical gaps in areas such as foundational components and basic materials. Additionally, the overall cost of new-energy vehicles remains relatively high, while their safety, reliability, and ease of use still require further improvement. Moreover, the channels for recycling and reusing power batteries are not yet sufficiently streamlined—issues all of which demand ongoing efforts to address and resolve. Furthermore, the nation’s goals of "carbon peaking" and "carbon neutrality" are placing new, stringent demands on the development of the automotive industry.
Xin Guobin stated that the dual-carbon goals will bring about widespread and profound systemic transformations across industries, requiring collaborative efforts from the entire industrial chain to jointly promote the coordinated development of low-carbon industries, low-carbon products, low-carbon transportation, and low-carbon energy. Meanwhile, while the new-energy vehicle industry continues to expand in scale, it is also facing rising pressures on raw materials such as lithium, cobalt, and nickel ores. Globally, the COVID-19 pandemic remains highly prevalent, though China has managed to keep the overall situation effectively under control—though localized outbreaks still pose a potential risk. As a result, automotive chip and component supplies have recently been constrained, leading to year-on-year and month-on-month declines in automobile production and sales for the fourth consecutive month. This underscores significant challenges ahead in maintaining stable operations. Lastly, cybersecurity and data security issues have become increasingly prominent.
Xin Guobin stated that with the advancement of automotive intelligence and connectivity, while technological progress brings numerous benefits, it may also give rise to data security concerns, such as unauthorized collection and utilization of personal information and critical data. Moreover, cybersecurity issues like cyberattacks and network intrusions could pose significant risks if regulatory measures fail to keep pace in a timely manner.
Xin Guobin stated that this year marks the beginning of the 14th Five-Year Plan, making it crucial to effectively advance the development of the automotive industry moving forward. The Ministry of Industry and Information Technology (MIIT) will firmly implement the decisions and arrangements made by the CPC Central Committee and the State Council, deeply advancing the development plan for the new-energy vehicle industry. Together with relevant departments, we will coordinate comprehensive strategies to achieve tangible results and deliver real benefits. First, we will leverage the ministerial-level joint conference system to streamline and accelerate a series of policy measures aimed at boosting the growth of new-energy vehicles. This includes maintaining the continuity, stability, and effective alignment of supportive policies, while further strengthening the lithium, cobalt, and nickel supply security framework. Second, we will enhance integrated innovation and accelerate the development of emerging industries. Grounded in the trends of electrification, networking, and intelligentization, we will simultaneously promote improvements in infrastructure, data platforms, and regulatory standards. At the same time, we’ll collaboratively drive advancements in electric vehicle intelligence, smart road systems, communication networks, and cloud-based control technologies. Additionally, we’ll launch pilot programs in cities aiming for full electrification of vehicles in the public sector, and task industry organizations with drafting and releasing a technical roadmap for low-carbon development in the automotive industry. Third, we will address critical industry gaps and elevate the overall competitiveness of the entire value chain. To achieve this, we’ll launch initiatives focused on strengthening and supplementing key links in the industrial chain. By tackling technological bottlenecks across R&D, platform support, and demonstration applications, we’ll expedite the development and commercialization of automotive-grade chips, operating systems, and other essential components. We’ll also guide enterprises in optimizing their supply-chain strategies, ensuring greater stability, safety, and global competitiveness within the industry. Fourth, we will uphold stringent safety standards and continuously improve the industry’s development environment. This includes refining safety-related technical standards for new-energy vehicles, encouraging companies to establish robust monitoring systems for safe operations, and intensifying inspections to ensure product consistency. Furthermore, we’ll organize automakers to conduct self-assessments covering areas such as vehicle data security, cybersecurity, and software updates. We’ll also strengthen the management of software-update filings and explore the establishment of standardized guidelines for intelligent and connected vehicle approvals. Finally, we will deepen international cooperation and uphold the consensus on globalized development. By actively fostering pragmatic partnerships in areas like technological innovation, trade and investment, and technical standards, we aim to leverage high-level openness to spur high-quality growth in the industry.

Translated from Sina Auto

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