China NEV Market

Beijing's quota for fuel car license plates has been reduced from 40,000 in 2021 to 30,000 in 2022, and the quota for NEV license plates has been increased from 60,000 to 70,000.

The exclusive coverage is expected to see a drop in insurance costs for about 80 percent of NEV owners, but some users say Tesla is facing significant premium increases.

For more than two decades previously, China has had strict restrictions on the share ratios of Chinese and foreign joint ventures in automobiles.

Energy-efficient technologies, including brake energy recovery systems, will be included in the 2021-2023 dual-credit assessment.

The official expects China's vehicle sales to reach 26.1 million units this year, up 3.1 percent year-on-year, and are expected to reach 27.5 million units next year, up 5.4 percent year-on-year.

As of now, there are 409,000 NEV-related companies in China, with Shanghai being the city with the most, with 18,200.

Dedicated insurance coverage will ease some consumer concerns about buying NEVs.

The team expects China's NEV sales to be around 6.11 million units in 2022, accounting for more than half of the global market share.

Edison Yu's team expects China's BEV penetration to be more than 40 percent by 2025, equivalent to about 10 million units.

Nio has already sold most of its regulatory credits in the third quarter, earlier than last year.