China Sets Its Sights on Becoming Auto Powerhouse by 2030

By Jiahui Huang

China aims to become a leader in the automobile industry by 2030, underscoring Beijing's plan to leverage on global demand for electric vehicles and hybrids.

Under a five-year plan released by government agencies, electric vehicles and hybrids will account for 70% of new passenger car sales in the domestic market by 2030, while 40% of new commercial vehicle sales will be electric vehicles. Vehicles equipped with autonomous driving capabilities are also expected to achieve mass adoption, the agencies said.

China also aims to catapult several homegrown companies to the list of global top 10 automakers by sales, while advancing key technologies, the plan said. Beijing is targeting average fuel consumption of 3.3 liters per 100 kilometers for passenger cars, while average electricity consumption for EVs is expected to fall to around 11.5 kilowatt-hours per 100 kilometers.

Domestic demand for electric and hybrid vehicles has been growing rapidly in recent years, and Beijing aims to transform the industry into a pillar of the national economy.

In August, retail sales of EVs and hybrid cars accounted for a record 65.2% of total passenger car sales, data from the China Passenger Car Association showed.

However, only a handful of Chinese automakers rank among the top 10 by global sales. BYD, SAIC and Geely Automobile are on the list, but most of their Chinese peers remain behind companies including Toyota, Volkswagen Group and Hyundai.

The industry has also faced weaker demand since late last year, as Beijing has scaled back subsidies and consumer spending has remained subdued. In the first eight months of the year, retail passenger-vehicle sales fell 21% from a year earlier to 11.72 million units, CPCA data showed.

Looking ahead, China's share of global electric and hybrid vehicle sales is likely to continue to rise, as automakers expand overseas in a bid to offset weaker domestic demand.

Write to Jiahui Huang at jiahui.huang@wsj.com

(END) Dow Jones Newswires

September 11, 2026 03:56 ET (07:56 GMT)