The electrification of China’s commercial vehicle market is progressing, especially for BEVs, with the share of NEV (BEV+PHEV+FCEV) commercial vehicles already reaching 18.8% (430,000 units) in the first 10 months of 2024.

Looking at the status of electrification by vehicle type, in the January-October period of 2024, sales of BEVs exceeded those of internal combustion engine vehicles (ICEVs) for the first time in light-duty trucks and light buses, which are widely used in logistics and small-lot transportation. In medium- and heavy-duty buses, where BEV sales temporarily exceeded ICEV sales, the growth of BEVs is slowing down, while FCEV heavy-duty buses are increasing in 2024. The number of FCEV large buses increased in 2024, while the number of FCEV large buses increased in 2024.

Meanwhile, in January 2025, the Chinese government released a draft of the NEV credit ratio and credit calculation method for 2026-2027. After a public comment process, the official draft will be released. The draft sets the NEV credit ratio at 48% in 2026 and 58% in 2027. The standard credit for BEV and PHEV passenger cars will be reduced by 50% from the current proposal, while the standard credit for FCEVs will remain unchanged. In addition, preferential treatment for fuel-efficient passenger cars such as HEVs will be continued, and the actual number of fuel-efficient passenger cars produced or imported will be multiplied by 0.1 when calculating the NEV credit for the period 2026-2027.