China’s New NEV Regulations for 2021–2023

Following the implementation of the first phase of China’s NEV regulations for the period of 2019-2020, regulations for the second phase for the period of 2021-2023 are now under review. In July and September 2019, China’s Ministry of Industry and Information Technology (MIIT) collected opinions on the proposal for the second stage of NEV regulations. The industry expects that NEV credit requirements will gradually increase from 10% in 2019 and 12% in 2020 to 14% in 2021, 16% in 2022 and 18% in 2023. In addition, the establishment of a new category of fuel-efficient vehicles is being considered. If the new category is put into practice, it will be easier for Japanese automakers that are strong in the HEV sector to respond to NEV regulations.