New Energy Vehicle (NEV) Mandate Policy

Last updated: 5 December 2019

The NEV mandate in China aims to promote new energy vehicles (NEVs) and provide additional compliance flexibility to the

existing fuel consumption regulation. This policy applies only to passenger cars.


The rule specifies NEV credit targets for two years: 10% of the conventional passenger vehicle market in 2019 and 12% in 2020. These annual percentage targets are not for NEV sales, but for NEV credits. Each NEV is assigned a specific number of credits depending on metrics including electric range, energy efficiency, and rated power of fuel cell systems. Higher performance vehicles get more credits, capped at six credits per vehicle. These NEV credit targets thus may result in NEV market share falling into a range of values based on fleet mix. Assuming that all manufacturers produce vehicles with a per-vehicle NEV credit of three in 2020, for example, the market share of NEVs in China based on number of vehicles sold would be around 4% in 2020 while still meeting the 12% target based on NEV credits.

Want to know more about this policy ? Learn more (Chinese and English)