China looking to car sales as it seeks to get faltering economy back on track

New government guidelines set a target of selling 27 million new vehicles this year, with a major focus on electric cars

The plan identifies the auto industry as a major pillar of the world’s second largest economy, which is facing a series of challenges after the pandemic

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The plan includes a series of measures to boost electric car sales. Photo: Reuters

Published: 7:44pm, 2 Sep 2023Updated: 9:26pm, 2 Sep 2023

China has set out a new plan to boost car sales – particularly new energy vehicles – as it looks for ways to shore up its struggling post-Covid economy.

The guidelines published on Friday by seven government departments, led by the industry ministry, set a target of selling around 27 million new vehicles this year, a 3 per cent increase on the 2022 figure.

In particular, it set a goal of increasing sales of electric cars to approximately 9 million units this year, a 30 per cent increase.

The plan describes the industry as a vital pillar of the world’s second biggest economy, but warns that “international uncertainties and instability are increasing” and identifies the three main domestic pressures it is facing as “shrinking demand, supply disruption and weakened expectations”.

China, the world’s largest car sales market, saw 26.86 million units sold last year, up 2.1 per cent year-on-year,according to data from the China Association of Automobile Manufacturers.

New energy vehicles sales reached 6.89 million units last year, an increase of 93.4 per cent, according to the industry body.