"15th Five-Year Plan Sets Clear Carbon Peak Target: 30% of Vehicles to Be New Energy by 2030"

The State Council's recently issued "15th Five-Year Plan (2026–2030) Action Plan for Carbon Peaking" sets a target that by 2030, new energy vehicles (NEVs) should account for 30% of the total vehicle fleet, and NEVs among operational transport vehicles should reach 25%. As of the end of June 2024, China had a total vehicle fleet of 371 million, of which 48.97 million were NEVs—representing 13.19% of the total—leaving a gap of approximately 17 percentage points to meet the 2030 target. While the current penetration rate of NEVs in new car sales has approached 50%, the transition within the existing vehicle stock remains lagging. According to the plan, during the 15th Five-Year Plan period, the focus of carbon reduction efforts in the automotive industry will shift from primarily boosting new NEV sales to simultaneously expanding new NEV adoption and accelerating the replacement of existing internal combustion engine vehicles. High-frequency, high-emission operational vehicles—particularly those in public service sectors and heavy-duty freight trucks—will be prioritized for replacement. The government will implement measures including fiscal subsidies, diversified powertrain technology upgrades, and expansion of refueling and recharging infrastructure to support the automotive sector in helping the transportation industry achieve its carbon peaking goal on schedule.