China to Sell 30 Million Cars in 2025

Normalization of China's Auto Industry, 25 Million Units Sold This Year... 33% of Global Sales
Target of 6 Million New Energy Vehicles Including EVs by 2025

[Asia Economy Beijing=Special Correspondent Jo Young-shin] It is forecasted that China's automobile production and sales volume will reach 30 million units by 2025. The year 2025 is when the Chinese government announced it would convert 20% of new car sales to new energy vehicles such as electric cars.

The state-run People's Daily reported on the 28th that the Chinese automobile market has been steadily growing since 2021, and production and sales are expected to reach 30 million units by 2025.

Despite the COVID-19 pandemic, the People's Daily stated that this year China's automobile sales will exceed 25 million units. This figure is about 2% short of the original target, the People's Daily added.

Pu Bingfeng, Secretary-General of the China Association of Automobile Manufacturers (CAAM), said, "25 million units account for 33% of global car sales," and added, "As a result of effectively containing the epidemic, China's automobile production and sales have returned to normal."

Huang Lejin, factory manager of Changan Automobile, said, "Since August, we have newly hired 1,700 employees and are operating the factory 24 hours a day in three shifts," and added, "The Chinese automobile industry has normalized."

The focus of the People's Daily's outlook on the Chinese automobile industry is on new energy vehicles such as electric cars. A significant portion of the automobile outlook article was devoted to electric vehicles.

[Image source=Yonhap News]

China has announced the "New Energy Vehicle Technology Roadmap 2.0," which includes plans to increase the proportion of electric vehicle sales annually to 20% by 2025, 30% by 2030, and 50% by 2035.

From January to November this year, sales of new energy vehicles in China reached 1.09 million units. It is estimated that 1.2 to 1.3 million units will be sold annually this year. To achieve the 20% target by 2025, 6 million new energy vehicles must be sold. This is a target that can only be achieved if new energy vehicle sales explode.

The People's Daily encouraged electric vehicle sales by stating that the government is offering various support measures such as a separate subsidy of 3,000 yuan for rural residents purchasing electric vehicles and free use of parking lots. It appears that China is dreaming of an "electric vehicle dream" to achieve its production and sales targets for new energy vehicles and lead global new energy vehicle standards.

Another reason the Chinese government is focusing on the new energy vehicle industry is that the automobile industry has higher employment and production inducement coefficients compared to other industries. The core of China's dual circulation policy (stimulating domestic demand through employment expansion) is job creation. This is interpreted as the Chinese government's intention to support and foster the automobile industry, which has a large employment effect.

This content was produced with the assistance of AI translation services.