China sets world’s first mandatory EV energy limits

by EVtalk December 29, 2025

China will implement the world’s first mandatory energy consumption limits for electric passenger vehicles on January 1, 2026, establishing binding efficiency standards that could influence global electric vehicle (EV) development.

The new national standard, formally titled “Limits of Energy Consumption for Electric Vehicles – Part 1: Passenger Cars” (GB 36980.1—2025), replaces previous voluntary guidelines and gives direct legal force over newly produced models, according to China Central Television as cited by IT Home.

The regulation establishes binding electricity consumption thresholds differentiated by vehicle weight and technical characteristics. For pure electric passenger cars with a curb weight of around two tonnes, the new requirement sets a maximum electricity consumption of 15.1 kilowatt-hours per 100 kilometres.

Compared with the previous recommended version, the new mandatory standard tightens energy consumption requirements by approximately 11%. Chinese authorities say the limits were set after assessing current energy consumption of pure electric passenger cars, the potential of energy-saving technologies, cost-control considerations, and performance characteristics of special vehicle categories.

Technical upgrades required for compliance

Once the standard takes effect, manufacturers will be required to carry out technical upgrades on newly produced vehicles to ensure compliance. Authorities state that following technical upgrades, vehicles with the same battery capacity are expected to see an average increase of about 7% in driving range due to reduced energy consumption.

The regulation applies specifically to pure electric passenger vehicles and does not cover plug-in hybrid or extended-range models. The efficiency gains reported in official documents are attributed to system-level improvements rather than increases in battery capacity.

The new framework is expected to put significant pressure on automakers to develop solutions to increase drivetrain efficiency, reduce aerodynamic drag, and lower vehicle weight, since rolling resistance is directly proportional to vehicle mass.

Purchase tax exemptions linked to efficiency

Chinese authorities, including the Ministry of Industry and Information Technology, the Ministry of Finance, and the State Taxation Administration, have issued updated technical requirements linking the new energy consumption standard directly to financial incentives.

Pure electric passenger cars must meet the new mandatory energy consumption limits to remain eligible for purchase tax exemptions in 2026 and 2027, aligning fiscal policy with regulatory efficiency targets.

Vehicles already listed in the purchase tax exemption catalogue by the end of 2025 that comply with the updated requirements will transition into the 2026 catalogue, while non-compliant models may be removed.

For major Chinese automakers such as BYD and Geely, the new regulation formalises efficiency thresholds that many of their newer pure electric passenger models already meet. Compliant vehicles can continue production with minimal changes, while non-compliant models may require technical upgrades or be removed from production and purchase tax exemption eligibility.

New Zealand market implications

The mandatory standard could have implications for the New Zealand market, where Chinese EV brands including BYD, MG, and Leapmotor have established significant presence. Models destined for export markets may benefit from the efficiency improvements driven by China’s domestic requirements.

The regulation primarily affects two-tonne-class vehicles and other heavier models, prompting automakers to prioritise energy efficiency improvements across platforms and trim levels to remain competitive under the new regulatory and fiscal framework.

Chinese authorities say the policy is important for the country’s energy planning, as more efficient EVs consume less energy and require fewer energy sources to cover EV consumption nationwide.

Source: https://evsandbeyond.co.nz/china-sets-worlds-first-mandatory-ev-energy-limits/