With the new five-year plan, China is further driving forward the electrification of transport.Image: BYDUnder the new plan, new energy vehicles (‘NEVs’) are expected to account for around 30 per cent of China’s total vehicle fleet by 2030. The term NEV encompasses battery-electric vehicles, plug-in hybrids (including range-extender cars), and fuel cell vehicles. Published by the State Council on Thursday, the plan is part of the People’s Republic’s 15th Five-Year Plan and aims to significantly reduce the country’s CO₂ emissions by 2030.To achieve the 30 per cent target for passenger cars, the NEV fleet will need to more than double over the next five years. At the end of 2025, the Chinese Ministry of Public Security reported 43.97 million NEVs registered, representing a 12.01 per cent share of the total vehicle fleet. Of these, around 30.22 million vehicles – nearly 69 per cent of the NEV fleet—were battery-electric.As CNEVPost reports, the action plan also targets the transport sector. By 2030, commercially operated vehicles with alternative drivetrains are expected to reach a 25 per cent share of the fleet. Additionally, the government aims to accelerate the electrification of public vehicle fleets and expand the use of zero-emission vehicles in construction, mining, ports, and airports. Heavy-duty vehicles with alternative drivetrains are also set to become more widespread.The measures are supported by a further expansion of infrastructure. Plans include additional charging and battery-swapping stations, as well as refuelling stations for green hydrogen, ammonia, and methanol. The focus lies on heavily trafficked motorways and national transport axes, where CO₂-free transport corridors are to be established gradually. The transport sector is part of a broader national decarbonisation programme. By 2030, CO₂ emissions per unit of gross domestic product are set to decrease by 17 per cent. At the same time, the share of non-fossil energy sources in China’s energy consumption is expected to rise to 25 per cent. China also plans to further expand wind and solar energy, nuclear power, energy storage systems, and CO₂-neutral industrial parks and factories.The new action plan comes at a time when the Chinese government is adjusting its subsidy strategy. After state incentives supported the ramp-up of electromobility for years, direct benefits are now being phased out. In early July, China announced that the annual vehicle tax exemption for plug-in hybrids and several classes of electrified commercial vehicles would end in 2027. Battery-electric passenger cars, however, will remain tax-exempt. While purchase incentives are being reduced, the government is now focusing more on long-term expansion targets for vehicle fleets, infrastructure, and the energy transition.cnevpost.com