Over the weekend, GB 36980.1 – 2025 was announced, regulating which vehicles qualify for the NEV purchase tax exemption. PHEVs will need at least 100 km of battery range (up from 43 km). It has been estimated that roughly 40% of current PHEVs being sold in China do not meet the new standard.

According to the efficiency graph from MIIT for electric vehicles, efficiency would need to rise to roughly 10 kWh/100 km for vehicles less than a metric ton, up to roughly 19 kWh/100 km for vehicles 2710 kg and over, roughly 11% higher than before.

Emissions regulations are also anticipated to become stricter soon with the adoption of China 7 emissions. The previous China 6 was harmonized with Euro 6 emissions. China moved up to stricter China 6B last year in anticipation of planned changes for Euro 7. However, Euro 7 was relaxed from earlier plans due to automaker complaints, leaving China with the strictest emissions in the world. Of note, China has tended to make emissions stricter for both new and existing cars