China is reported to be raising its 2025 nationwide sales target for ‘new-energy vehicles’ to 25%, allowing carmakers who are eager to expand in the world’s largest auto market further incentive to work on their zero-emissions offerings. According to Nikkei Asian Review, this is a rise from its initial target of 20% for 2025, which was set in 2017.

The proposal from China’s industry ministry calls for the ‘new-energy vehicles’ category, which includes electric, plug-in hybrid and fuel cell autos, to make up 25% of all new vehicles sold in 2025, up from just 4% in 2018. The proposal, which covers 2021 to 2035, calls for accelerating the development of key parts and systems with the goal of making China a world leader in core technology for new-energy vehicles.

China became the largest market for electric vehicles in 2015 and is estimated to account for 6% of all new vehicles sold in the country in 2019. Although domestic companies still hold the lead in market share, they face competition from rivals such as Tesla, which has set up a wholly owned subsidiary in Shanghai and begun mass production of its electric cars. 

China’s industry ministry has also called for the share of vehicles featuring autonomous-driving technology to increase by 2025.