Sheng Qiuping, Member of the Party Leadership Group, Vice Minister, and Secretary of the Party Committee of the Ministry of Commerce

TMTPOST -- In 2024, China's new energy vehicle (NEV) market achieved significant milestones, with production and sales surpassing 10 million units for the first time.

The country also saw its electric vehicle (EV) exports in 2024 increase 23% year over year to exceed 2 million units, contributing to a total of 6.41 million automotive exports.. This achievement reaffirmed China's position as the world's largest auto exporter.

At the 2025 China Electric Vehicle 100 Forum, Sheng Qiuping, the Deputy Minister of Commerce, outlined the government's continued support for the NEV sector in 2025.

The Ministry of Commerce plans to bolster its policies and adopt a variety of measures to stimulate the NEV market further. This includes expanding the trade-in program for consumer goods and fostering new growth areas within automotive consumption. The ministry will also focus on enhancing international cooperation, helping manufacturers establish overseas marketing networks, after-sales systems, and improving their operational service capabilities abroad.

Last year, the trade-in program for consumer goods generated sales surpassing 1.3 trillion yuan, with the automotive sector accounting for more than 950 billion yuan. This year, the program is set to expand, with increased special treasury bonds  of 300 billion yuan, double last year’s allocation.

Notably, the program continues to offer a subsidy of 20,000 yuan per unit for scrapping and replacing old vehicles with new energy ones. By March 28, over 1.769 million subsidy applications for the 2025 automotive trade-in program had been submitted, signaling strong consumer demand. Retail sales of NEV passenger cars in China have already surpassed 2.05 million units in 2025, marking a year-on-year growth of approximately 34%.

Reflecting on 2024, Sheng noted the Ministry of Commerce's focus on revitalizing existing resources, cultivating new growth, and boosting NEV consumption by optimizing the entire supply chain.

Last year, over 6.8 million vehicles were traded in, with nearly 4 million being NEVs. The used car market also experienced growth, with 19.61 million units sold, a 6.5% increase compared to 2023. Notably, NEVs accounted for a significant portion of this growth, with 1.13 million units sold—an increase of 48% from the previous year.

The ministry's efforts also extended to addressing challenges related to the lifecycle of NEVs, such as managing the retirement and recycling of used NEV batteries. By improving dismantling and recycling systems, over 75% of enterprises nationwide now have the capacity to handle NEV scrapping.

In terms of international trade, the Ministry of Commerce worked alongside several other government departments to issue the "Opinions on Supporting the Healthy Development of New Energy Vehicle Trade Cooperation." This initiative has contributed to a 33.5% increase in NEV exports in the first two months of 2025, which continues to be a key driver of China’s foreign trade. In addition, over 80 investment cooperation working groups have been formed with countries and regions, and more than 600 Chinese automotive manufacturing companies now operate abroad.

However, Sheng also acknowledged challenges facing the sector. Global geopolitical tensions, protectionism, and unstable domestic demand pose risks to the NEV market’s continued growth. In light of these obstacles, the Ministry of Commerce is committed to increasing policy support, boosting consumption, and expanding domestic demand to solidify the foundation for the NEV industry's long-term development.

In 2025, China will intensify efforts to build a new development pattern for new energy vehicles, keeping pace with global trends while addressing domestic challenges, Sheng concluded.