02
2026
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03
China Rolls Out Policies to Drive New Energy Vehicles in Rural Areas
Source:
The National Development and Reform Commission and the National Energy Administration recently issued the Implementation Opinions on Accelerating the Construction of Charging Infrastructure to Better Support the Promotion of New Energy Vehicles in Rural Areas and Rural Revitalization, putting forward a series of measures to innovate the construction, operation and maintenance models of charging infrastructure in rural areas and support the purchase and use of new energy vehicles (NEVs) in rural regions. This is a concrete step to implement the important arrangements made at the previous executive meeting of the State Council.
NEVs represent both an industrial and consumption hotspot. Data from the China Association of Automobile Manufacturers show that in the first four months of this year, China’s production and sales of NEVs reached 2.291 million units and 2.222 million units respectively, both up 42.8% year on year, with a market share of 27%. However, the development of NEVs is uneven between urban and rural areas. The penetration rate of NEVs in some first-tier cities is close to 50%, while that in third- and fourth-tier cities, especially rural areas, stands at only 10%.
“NEVs have greater potential for popularization in counties and townships than in large cities,” said Cui Dongshu, Secretary General of the China Passenger Car Association. He noted that as the penetration rate of NEVs keeps rising in large cities, growth may enter a relatively slow phase, whereas small and medium-sized cities, counties and townships boast huge incremental potential and should become a key area for unlocking domestic demand.
According to the Research on Electric Vehicle Mobility in Rural China released by the China Electric Vehicle 100, by 2030, the per-thousand-vehicle ownership in rural China is expected to reach 160 units, with the total stock exceeding 70 million vehicles. Better meeting rural residents’ demand for motorized and green mobility will not only support the promotion of NEVs in rural areas but also advance rural revitalization.
The popularization of NEVs relies heavily on the support of charging infrastructure. However, due to the low penetration rate of NEVs in rural areas and high costs for power distribution network expansion, operators lack enthusiasm for building public charging facilities in rural regions, leading to lagging development of rural charging infrastructure. China launched campaigns to promote vehicles and NEVs in rural areas in 2009 and 2020 respectively.
“Judging from the effect of previous policies, targeted policies and multi-stakeholder coordination can effectively unlock consumption potential in rural areas,” said an expert from the China Automotive Strategy and Policy Research Center. Promoting NEVs in rural areas is a systematic endeavor that requires strengthened safeguards in terms of supply improvement and infrastructure development in line with rural consumption characteristics.
“The two ministries encourage NEV enterprises to optimize configurations through differentiated strategies and develop more economical and practical models tailored to rural consumers, especially new energy micro-vans, micro-trucks and light trucks for freight transport. This is to urge enterprises to act on the supply side to meet and create market demand,” Cui Dongshu said.
To address weak rural infrastructure, the China Automotive Strategy and Policy Research Center suggested following the principle that “power supply should precede rural revitalization” to improve the charging network layout in counties and towns, so as to promote balanced regional distribution and structural optimization of charging facilities. Meanwhile, more parking spaces for NEVs should be created by widening roads, adding parking spaces along roads, paving open spaces and opening public parking lots, with land reserved for public infrastructure.
Automakers should also join hands with energy companies to explore the construction and operation of charging infrastructure. Gu Huinan, General Manager of GAC AION, stated that GAC Energy Technology Co., Ltd., a subsidiary of GAC AION, has signed a strategic cooperation agreement with CNPC to fully advance the NEV promotion campaign in rural areas. It plans to build more than 1 million charging terminals (including home chargers) in rural regions by 2025.
“The negative electricity price in Shandong Province once went viral, indicating that unstable energy such as photovoltaic and wind power must be effectively absorbed,” Cui Dongshu pointed out. The state proposes to build charging infrastructure in an appropriately forward-looking manner and innovate its construction, operation and maintenance models to ensure “someone builds, someone manages and sustainable operation”. This should be reflected not only in the quantity of infrastructure but also in its “construction, management and service” model.
For instance, some regions should extend charger construction to the integration of photovoltaic, energy storage and charging, combining photovoltaic power generation, energy storage and vehicle charging into a coordinated new green charging system. This model can effectively improve energy efficiency, reduce carbon emissions, meet the charging demand of NEVs, and advance the strategies of NEV promotion in rural areas and rural revitalization.
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