China’s General Office of the State Council issued its development plan for the new energy vehicle industry (2021-2035) on November 3, stating that the new energy vehicle (NEV) sales will account for around 20 percent of overall new vehicle sales in China by 2025. Meanwhile, by 2035, pure electric vehicles will constitute the major part of new vehicle sales.
On November 2, Shanghai started to implement new regulations for vehicles without Shanghai license plates, announcing that certain roads will be off-limits to these vehicles from 7 am to 8 pm, except for Saturdays, Sundays and national holidays. Accordingly, some car owners with vehicles with license plates of other provinces will consider selling their vehicles and buying a new energy vehicle as this will make it easier to obtain a Shanghai license plate.
NEV production in China is expected to see a booming period, which will boost demand for steel.