NEV Manufacturing Qualification

NEV manufacturing qualification refers to the statutory regulatory approval required for enterprises to manufacture and sell New Energy Vehicles (NEVs) in mainland China, colloquially known as the "car-making qualification". Under relevant regulations, enterprises must obtain "dual qualifications" before they can legally manufacture and retail NEVs: first, the plant construction qualification issued by the National Development and Reform Commission (NDRC), which represents investment project approval; and second, the market entry qualification issued by the Ministry of Industry and Information Technology (MIIT), which serves as the enterprise and product access approval.

The "Dual Qualification" System

The NEV manufacturing qualification is jointly regulated by the NDRC and MIIT, establishing two critical regulatory hurdles:

NDRC Plant Construction Qualification: In accordance with the "Provisions on the Administration of Newly Established Pure Electric Passenger Vehicle Enterprises", this oversees the approval of new pure electric passenger vehicle production projects. Once approved, enterprises must complete plant construction within two years and commence vehicle sales within three years.

MIIT Market Entry Qualification: Based on the "Provisions on the Access Administration of New Energy Vehicle Manufacturing Enterprises and Products", this audits an enterprise's capabilities in R&D and design, manufacturing, production consistency assurance, and after-sales service support. Upon passing, the enterprise and its products are listed in the "Announcement on Road Motor Vehicle Manufacturing Enterprises and Products" (the "Announcement"), granting official clearance for retail launch.

From March 2016, when BAIC BJEV secured the first NEV manufacturing qualification, to May 2017, when JAC Volkswagen obtained the last one, the NDRC issued a total of 15 qualifications, after which evaluation standards grew increasingly stringent.

Routes to Securing Qualifications

Against the backdrop of tighter "dual qualification" approvals, EV start-ups primarily pursue three pathways to obtain manufacturing qualifications:

Independent Application is the most direct yet highest-barrier route. Post-2017, only a handful of crossover OEMs such as Leapmotor and Neta Auto gained approval through independent applications. Enterprises must demonstrate comprehensive automotive manufacturing background and capabilities.

Acquisition of Qualifications represents the mainstream route. Production approvals are inherited by acquiring qualified entities: Li Auto secured its qualification by acquiring Lifan Motors for RM650,000,000; XPENG acquired Guangdong Foday Auto; NIO acquired selected factory assets from JAC Motors for RM3,158,000,000, simultaneously securing its independent manufacturing qualification.

Contract Manufacturing was previously a common choice for early EV start-ups. NIO originally relied on JAC for contract manufacturing, while XPENG partnered with Haima. However, MIIT's 2022 "Notice on Launching Pilot Work for Contract Manufacturing of New Energy Vehicles" stipulated that both commissioning and contract-manufacturing parties must possess production qualifications, effectively closing the loophole of contract-based manufacturing without qualifications.

2027 Entry Regulations: Raising the Bar Even Further

In January 2026, MIIT issued the revised "Requirements for Access Review of Road Motor Vehicle Manufacturing Enterprises" and "Requirements for Access Review of Road Motor Vehicle Products", effective from 1 January 2027. This marks a decisive shift in regulatory philosophy from "encouraging market entry" to "raising regulatory thresholds".

The key changes under the new regulations centre on three areas:

Strengthening Intelligent Connected Capabilities. The new regulations raise standards across the board for cybersecurity, data security, over-the-air (OTA) software updates, combined driver assistance, and autonomous driving, detailing requirements for safety monitoring, testing, and evaluation.

Systematically Enhancing NEV Safety Frameworks. The rules further clarify requirements for establishing robust NEV safety systems, solidifying a strict safety baseline at the enterprise capability level.

Optimising Corporate Resource Allocation. Eligible corporate groups are permitted to share R&D, procurement, sales, and select manufacturing capacities, empowering market leaders to expand efficiently while adjusting requirements for certain manufacturing plant equipment and R&D facilities to improve resource utilisation.

Since 2022, MIIT has, in principle, stopped issuing new NEV passenger car manufacturing qualifications. New entrants can only gain market access by "revitalising idle capacity"—namely, acquiring qualification quotas from bankrupt or deregistered enterprises, or acquiring qualified corporate entities outright.