Chongqing - On September 12, the Ministry of Industry and Information Technology (MIIT) and seven other departments released the Automotive Industry Growth Stabilization Plan (2025–2026), setting the target of 32.3 million vehicle sales for 2025, a 3% increase from last year. 

Within this, NEV sales are expected to reach 15.5 million units, a year-on-year rise of about 20%.

An MIIT official noted challenges such as rising competition, insufficient demand, and disorderly practices in the automotive sector, stressing that the plan aims to build on past achievements and meet growth targets.

According to the plan, China aims to achieve a target of 32.3 million vehicle sales in 2025, with 15.5 million of those being NEVs. (Photo/Wang Jiaxi)

Performance in the first eight months of 2025 will serve as an important indicator of whether these annual goals can be met. According to the China Association of Automobile Manufacturers (CAAM), cumulative sales from January to August totaled 21.13 million units, up 12.6% year on year. Of this, NEVs accounted for 9.62 million units, a 36.7% increase, making up 45.5% of total sales.

Based on current averages—2.64 million vehicles and 1.2 million NEVs sold per month—CAAM projects that sales could increase by roughly 10.56 million vehicles overall and 4.81 million NEVs in the remaining four months of 2025. While this growth may not fully reach the plan’s targets, strong upward momentum is evident despite complex market dynamics.

Compared with the 2024 benchmarks, the 2025 sales target is more measured. CAAM data shows that in 2024, total vehicle sales reached 31.44 million units, a 4.5% year-on-year increase. Of these, NEVs accounted for 12.87 million units, up 35.5%.

Despite positive growth, competition in China’s auto market remains intense. The plan therefore emphasizes further regulation of industry practices, particularly the standardization of supplier payment terms and online promotions. Measures include urging automakers to honor payment commitments, normalize payment behavior, and address online misconduct.

To cut costs, automakers often extend payment terms to suppliers, which helps maintain liquidity. However, on June 1 the State Council revised and implemented the Regulations on Ensuring Timely Payment to Small and Medium-Sized Enterprises, requiring large companies to pay SMEs within 60 days of delivery unless otherwise agreed in a contract.

In response, domestic automakers such as Changan Automobile and SAIC have pledged to cap supplier payment terms at 60 days. To reinforce this, CAAM released the Automobile OEM Supplier Payment Standards Initiative on September 15. The initiative seeks to simplify complex payment processes, resolve supply chain discrepancies, and ensure consistent standards. That same day, major automakers including Changan and SAIC voiced their support.

The initiative covers order confirmation, delivery and acceptance, payment and settlement, and contract terms. Notably, it clarifies that the “60-day” payment term refers to 60 calendar days, with extensions only if the due date falls on a public holiday. While “60 days” and “60 calendar days” may appear similar, the latter explicitly includes weekends and holidays.

To curb online misconduct, MIIT and five other departments recently issued a Notice on Special Rectification Action for Online Misconduct in the Automotive Industry. The three-month campaign targets illegal profiteering, exaggeration, false advertising, and malicious attacks in online promotions, aiming to clean up the sector’s online environment and improve its public image.

To boost automobile consumption, especially in NEVs, the plan proposes measures such as promoting EV trials in the public sector, running NEV campaigns in rural areas, expanding charging and battery swap infrastructure in county regions, and continuing tax exemptions on NEV purchases as well as vehicle and vessel taxes. Expanded vehicle replacement subsidies will also help inject new vitality into the market.