CPCA Urges China to Set Budget EV Standards to Boost Sales
The head of the China Passenger Car Association (CPCA), Cui Dongshu, has called on China to establish unified standards for budget electric vehicles (EVs) to stimulate demand and support the domestic auto industry’s recovery.
Cui highlighted that the shrinking market for low-end vehicles is a major bottleneck due to current EV models being either too expensive or lacking necessary compliance. This gap makes it difficult to address the daily commuting needs of the general public, particularly the elderly and residents in less-developed regions such as counties and townships.
With China’s passenger car sales facing persistent challenges, Cui emphasized that formulating clear standards focused on affordable EVs is urgent. Preliminary data from the CPCA shows that retail sales of new energy vehicles (NEVs) in China reached about 860,000 units in April 2026, slightly up from the previous month but lower than the 905,000 units recorded a year earlier. Although NEVs surpassed a market penetration rate of 60 percent for the first time in April, overall automobile consumption remains weak.
Drawing from mature overseas examples, Cui pointed to the European Union’s E-Car standards and Japan’s K-Car ecosystem as effective frameworks that balance low-carbon attributes, safety configurations, and production costs. He proposed that China should define core metrics for budget EVs including body size, motor power, and driving range.
Additionally, Cui recommended introducing a dedicated C7 driver’s license to simplify testing and reduce the entry barrier for elderly and novice drivers, which could encourage wider adoption of budget EVs. The CPCA chief also suggested targeted purchase subsidies and tax exemptions for consumers in less urban areas and the aging population, alongside accelerated development of charging infrastructure in these key zones.
Standardized budget EVs could also help Chinese automakers overcome technical barriers in overseas markets and boost brand expansion into emerging regions like Southeast Asia and India. While Chinese automakers have made significant inroads in the high-end EV segment, there remains reliance on low-cost light EVs—often termed “laotoule” or “old man’s joy”—in less-developed areas. These vehicles typically raise safety and compliance concerns.
Cui noted the success of Japan’s K-Car market, which has a nearly 40 percent penetration rate and serves as a popular commuting option for the elderly and small families. The long-established market has supported local brands such as Suzuki and Subaru. In a related development, BYD launched an electric mini K-Car called the Racco in Japan in October 2025, with plans to introduce it widely during summer 2026. This model is specifically designed for overseas markets and is not expected to be available in China in the near term.