China Omits Mention Of New Energy Vehicles In Latest 5-Year Plan - CleanTechnica

China’s latest 5-year plan notably omits direct mention of new energy vehicles (NEVs), signaling an expected phase-out of government subsidies for battery electric, plug-in hybrid, and fuel cell vehicles. This shift reflects Beijing’s view that the NEV industry has matured sufficiently to thrive without prioritized financial support, relying more on market forces to determine winners. Despite the removal of explicit NEV subsidies, China will continue supporting higher education and maintaining dominance in critical supply chains for battery materials and rare earth elements, ensuring ongoing indirect backing for the sector. The decision follows record-breaking sales in September 2025, when 1.6 million NEVs were sold in China, with battery electric vehicles surpassing one million units for the first time. China’s previous industrial policies, including three consecutive 5-year plans, successfully accelerated NEV adoption, achieving the goal of over 50% NEV market share a decade ahead of schedule. However, the intense government-driven focus also led to significant overcapacity,