Hainan to Ban Sales of Fuel-Powered Vehicles by 2030, Becoming China's First Province to Do So

The Hainan Provincial People's Government recently released the "Hainan National Pilot Zone for Ecological Civilization Development Plan (2026–2030)," explicitly stating that it will steadily implement a policy banning the sale of fuel-powered vehicles by 2030. By then, the share of new energy vehicles (NEVs) in the province’s total vehicle fleet is expected to rise from 23.75% in 2025 to 45%, making Hainan China’s first province to cease sales of internal combustion engine vehicles. Meanwhile, multiple automakers and supply chain companies are accelerating their overseas expansion and new product launches. Xiaomi Auto announced it will officially enter the European market in 2027, starting with Germany. Preparatory work is already underway, including appointing a former Tesla executive who previously led Central and Eastern Europe operations to oversee delivery and logistics infrastructure, and enlisting Premier League star Declan Rice as the experience ambassador for its YU7 model. As of mid-2026, Xiaomi’s overseas sales, after-sales service, and R&D systems are progressing steadily. BAIC Group released its sales figures for the first half of 2026: total sales reached 795,000 units, including 535,000 units from its self-owned brands, up 14.2% year-on-year; NEV sales totaled 181,000 units, an increase of 22.6% year-on-year; and exports amounted to 184,000 units, up 30.8% year-on-year. Stellantis Group expects global deliveries in Q2 2026 to reach 1.6 million units, a 10% year-on-year increase, primarily driven by growth in North America and Europe. Deliveries declined in the Middle East and Africa due to regional conflicts and in South America due to weak demand in Argentina. Great Wall Motor’s H10 will open for pre-orders on July 18. As the first “boxy” SUV built on the Guiyuan platform, it features the brand’s “Fangding Aesthetics” design language, equipped with LiDAR and roof rails, blending rugged SUV styling with new energy technologies. Chuneng Auto’s first ET validation vehicle has rolled off the production line at its Wuhan R&D Center’s prototyping facility, entering the real-vehicle validation phase. It will be used for comprehensive testing and optimization of overall vehicle performance, manufacturing processes, and core systems—including electronic architecture, electrified powertrain (e-traction, battery, and electronics), intelligent cockpit, and autonomous driving functions. According to the Ministry of Industry and Information Technology’s (MIIT) 409th batch of the “Announcement on Road Motor Vehicle Manufacturers and Products,” BYD’s Fangchengbao brand has filed for a Shark plug-in hybrid pickup truck. The model was previously launched overseas and is now set to debut in the domestic Chinese market. NIO CEO William Li addressed the company’s “safety net” commitment for its intelligent driving system, stating that if users incur losses due to system-related issues, the company will resolve them in the user’s best interest. He emphasized that this principle has always guided NIO’s operations and does not require a special announcement. In the auto parts sector, Gotion High-Tech disclosed that its overseas plants—in Germany, Vietnam, Indonesia, and Thailand—have gradually commenced production. Its G-Yuan semi-solid-state battery has passed extreme-condition testing and is ready for mass production, with strong order backlogs in both automotive and energy storage businesses. TSMC reported NT$442.68 billion in revenue for June 2026, up 67.9% year-on-year; its total H1 2026 revenue reached NT$2.40448 trillion, up 35.6% year-on-year. Baolong Technologies signed a cooperation agreement with BMW to continue supplying air springs and air reservoir tanks. Industry data shows that as of 2025, the average age of conventional fuel vehicles was 8.2 years, with over 60% having been in service for more than seven years. In contrast, the average age of NEVs was only 1.8 years, with a typical replacement cycle of 3–5 years—significantly shorter than the 6–8 years for fuel vehicles. In the first half of 2026, nearly 20 global power semiconductor companies raised prices intensively due to surging demand from AI data centers and 800V NEV platforms, shrinking 8-inch wafer capacity, and rising raw material costs. This pricing trend is expected to persist into 2027, significantly benefiting integrated device manufacturers (IDMs), while domestic suppliers accelerate technological upgrades. Lithium prices have recently declined, mainly due to resumed production at Jiangxi lithium mines and anticipated arrivals of lithium concentrate from Zimbabwe. However, spodumene supply remains tight, and some lithium salt producers have reduced output due to raw material shortages or scheduled maintenance. Inventory levels continue to decline, and downstream restocking demand is strengthening. Anticipated subsidy rollbacks for NEVs in 2027 have spurred a rush to install vehicles this year, boosting production forecasts. Commercial vehicle sales rose 36% year-on-year in H1 2026, and pure electric vehicle exports from January to May totaled 1.833 million units, up 114.4% year-on-year. Production in Q3 2026 is expected to increase sequentially, reflecting a “non-seasonal lull in the off-season and strong momentum heading into peak season.”