Chinese government and industry officials are expected to discuss how to control electric vehicle (EV) production and prioritize technological innovation during the annual “two sessions” of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) in Beijing, analysts said.
Last year, regulators reportedly banned the sale of cars below cost and cracked down on late payments to suppliers in an effort to ease deflationary pressures.
China produced and sold more than 16 million electric vehicles last year, according to the China Association of Automobile Manufacturers. By 2025, the country’s total vehicle production is expected to grow by 10.5% to 34.5 million.
Analysts say the total annual production capacity is estimated at about 50 million units. JPMorgan’s Nick Lai said in October that while some plants have the capacity to produce millions of vehicles, some are still under construction.
On the other hand, Deutsche Bank in January forecast that overall car sales – including both electric and gasoline-powered vehicles – would fall by 5% this year.
UBS analyst Paul Gong said in January that electric vehicle shipments are expected to grow by about 8% year-on-year. But that growth rate will be weaker than the 28.2% increase seen in 2025.
