China unveils plan to galvanize NEV uptake in rural areas

China's Ministry of Industry and Information Technology, in collaboration with four government bodies, has launched a nationwide campaign to bolster the new energy vehicle (NEV) uptake in China's rural areas.

The initiative will run from May to December 2024 and has been designed to bridge the current NEV consumption gap in rural regions, thereby enhancing residents' level of green, safe travel and contributing to the construction of beautiful villages and rural revitalization.

The NEV rural promotion catalog features an impressive array of 99 models from leading auto manufacturers, encompassing a wide range of NEVs for various sectors, including sedans, SUVs and multipurpose vehicles.

This diverse lineup includes models from state-owned heavyweights like China First Automobile Group to new auto-making powers like Xpeng. The catalog also includes several products from BYD.

A series of activities will be organized over the course of the eight months, including exhibitions, test drives and other consumer experiences, aiming to enrich market offerings and providing a variety of choices for rural consumers.

A key aspect of the initiative is the organization of support services such as those related to charging, battery swaps, insurance, claims, credit and after-sales maintenance, with these services set to be expanded to rural areas to address current infrastructure shortcomings.

The program will also implement policies to encourage NEV adoption, such as those related to vehicle trade-ins and improvements to county-level infrastructure.

The initiative will focus on county-level cities with currently low NEV uptake rates but high growth potential.

Participation from NEV manufacturers, sales companies, financial institutions, charging and swapping infrastructure providers, and after-sales services enterprises is encouraged.

These entities are being urged to develop promotional plans that align with the initiative's goals, and to establish comprehensive after-sales services systems to support rural consumers.

The campaign will combine on-site and online activities, leveraging the power of e-commerce and internet platforms to complement physical events with virtual ones, including online exhibitions and live interactions.

April saw a significant surge in China's production and domestic sales of NEVs.

Data from the China Association of Automobile Manufacturers (CAAM) shows that last month's NEV production hit 870,000 units and sales reached 850,000 units, with those figures respectively up 35.9 percent and 33.5 percent year on year.

In 2023, China's production and sales of vehicles both hit record highs, topping 30 million units apiece, according to CAAM data. And its production and sales of NEVs respectively exceeded 9.58 million and 9.49 million units, ranking first globally for a ninth consecutive year.