Mandatory Energy Limit Application for Electric Vehicles from China

China Mandates Energy Consumption Standards for Electric Vehicles

China has launched an innovative national initiative that makes energy consumption standards mandatory for electric vehicles.

World's First Mandatory Energy Consumption Limit

This new regulation stands out as the world’s first application that imposes a mandatory energy consumption upper limit for electric passenger cars. Authorities reported that the consumption limits have been narrowed by approximately 11% compared to the previous voluntary standards.

Different Consumption Limits According to Segments

Under the new standards, different upper consumption limits have been set based on the weight of the vehicles. For instance, an electric passenger car weighing around two tons will be allowed a maximum energy consumption of 15.1 kWh per 100 kilometers.

Technical Compliance Required by the End of 2025

With the implementation of the relevant standards, all new electric passenger cars produced in China will be required to meet these set limits. Automotive manufacturers will need to complete the necessary technical updates and relevant official notification processes by the end of 2025.

Regulatory authorities emphasize that tightening the energy consumption limits not only preserves current battery capacities but could also increase the average driving range by 7%.

Relationship Between Tax Incentives and Energy Efficiency

The new standards are also aligned with updates to China's incentive policy for electric vehicles. In line with the decision announced in October, the tax exemption for New Energy Vehicle (NEV) purchases for the 2026-2027 period will be redefined based on energy consumption and driving range criteria.

BEV models will need to meet the new energy consumption limits to qualify for tax exemption. Meanwhile, PHEV and EREV models will also have to offer at least 100 km in equivalent electric range and stay below national limits in both consumptions. Models that do not meet these criteria will be excluded from tax exemptions starting in 2026.