Automotive Industry Development Plan

The Automotive Industry Development Plan refers to a national medium-to-long-term strategic blueprint formulated to steer the transformation and upgrading of the automotive sector, outlining clear development trajectories and key priorities. China's automotive industry currently stands at a crucial juncture as it enters the 15th Five-Year Plan period. The formulation of the "15th Five-Year Plan for Intelligent Connected and New Energy Vehicle Industry Development" is being expedited, serving as the master blueprint to guide industry growth from 2026 to 2030 and marking China's full transition from volume-driven expansion to high-quality development.

Strategic Directions of the 15th Five-Year Plan

The "Recommendations of the CPC Central Committee on Formulating the 15th Five-Year Plan for National Economic and Social Development" systematically charts the sector's roadmap for the next five years, anchoring its core strategy around three key pillars: smart technology, green mobility, and ecosystem convergence.

Smart technology to lead the next phase of competition. During the 15th Five-Year Plan era, the industry's transformation will shift into its intelligence-driven second phase, with intelligent connected new energy vehicles (NEVs) designated as one of three trillion-yuan consumer sectors. Industry analysts project that by 2030, the market penetration rate of new passenger cars equipped with Level 2 combined driver assistance systems (ADAS) will surpass 90%, while Level 3 automated driving adoption is expected to reach 3% to 5%.

Green, low-carbon initiatives and diversified powertrains running in parallel. The "15th Five-Year Carbon Peaking Action Plan" specifically highlights the automotive sector three times, positioning it as a pivotal driver in decarbonising the transport industry. The blueprint sets out two main pathways: scaling up pure electric (BEV) and hybrid segments, while simultaneously developing zero-carbon alternative fuels such as hydrogen, ammonia, and methanol to build a diversified, multi-powertrain landscape.

Convergence building a new automotive ecosystem. The vehicle is evolving into a central hub connecting "vehicle, energy, road, cloud, and city" infrastructure. This involves deep technological integration and real-world deployment across new energy, telecommunications, and transport sectors, establishing a cohesive "manufacturing + services + ecosystem" growth model.

Key Priorities and Strategic Deployments

In January 2026, the Inter-Ministerial Joint Conference on Energy-Saving and New Energy Vehicle Industry Development outlined five core priorities for the 15th Five-Year Plan:

Finalising the Master Plan, aligning closely with energy and infrastructure strategies to establish clear targets, deploy key tasks, and drive industry-wide innovation.

Strengthening supply chain resilience and self-reliance, rolling out a new phase of high-quality industrial chain initiatives, accelerating breakthroughs in core technologies such as all-solid-state batteries and advanced autonomous driving, while reinforcing R&D in flagship products, foundational materials, and core software tools.

Spurring automotive consumption, driving vehicle trade-in programmes, scaling the adoption of electric and alternative-energy heavy commercial vehicles, reforming NEV insurance schemes, and unlocking diverse consumer demand. By 2030, NEVs are targeted to account for 30% of the total vehicle population, while green commercial fleet vehicles aim for a 25% share.

Regulating market competition, enhancing cost audits and price monitoring, tightening production conformity inspections and quality checks, and promoting industry self-regulation. The 15th Five-Year Plan explicitly addresses the need to curb destructive price wars and unhealthy rivalry, steering the market from cut-throat price-cutting towards value-driven competition.

Bolstering international collaboration, advancing the integration of trade and investment alongside domestic and global market operations, guiding carmakers to execute sound, orderly, and secure global expansions, and fostering a collaborative global automotive landscape.

2026 Opening Progress

In the first half of 2026, the value-added output of the equipment manufacturing sector grew 6.4% year-on-year, while total vehicle exports reached 5,096,000 units, up 65.3% year-on-year. The penetration rate of new passenger cars featuring combined driver assistance systems reached 70%. In June 2026, the United Nations global technical regulation on automated driving systems, spearheaded by China, was formally approved and published.

The Ministry of Industry and Information Technology (MIIT) confirmed that upcoming efforts will focus on four strategic fronts: first, expediting the rollout of the 15th Five-Year Plan to accelerate industrial transformation; second, driving R&D and commercialisation across next-generation traction batteries, automotive chips, operating systems, and autonomous driving tech; third, executing market stabilisation measures and bolstering vehicle trade-in initiatives; and fourth, maintaining an unwavering commitment to curb disorderly competition and safeguard a healthy, transparent market environment.