Interpretation of Shanghai’s Implementation Plan for Accelerating the Development of New Energy Vehicle Industry (2021-2025)

The Shanghai Municipal Government has released an interpretation of the Implementation Plan for Accelerating the Development of New Energy Vehicle Industry (2021-2025). The following goals must be met by 2025:

Industry Scale Goals:

The number of new energy vehicles in Shanghai is expected to exceed 1.2 million.
The output value of new energy vehicles is expected to exceed 350 billion yuan.
The output value of new energy vehicles accounts for over 35% of the city’s automobile manufacturing industry.

According to the Ministry of Public Security’s data as of the end of 2020, the number of new energy vehicles in China was approximately 4.92 million, and the latest data for Shanghai as of April 2020 indicated that there were approximately 300,000 new energy vehicles. This means that the number of new energy vehicles in Shanghai will need to quadruple within the next five years. Tesla and SAIC are currently the main producers of new energy vehicles in Shanghai, and will need to produce enough new energy vehicles to meet the 350 billion yuan target.

Vehicle Application Goals:

Pure electric vehicles will account for over 50% of newly purchased vehicles.
100% of public transportation, taxis, government vehicles, center city cargo vehicles, and postal vehicles will use new energy automobiles.
State-owned enterprise vehicles and sanitation vehicles will have over 80% new energy vehicles, while over 50% of ride-sharing vehicles will use new energy vehicles.
The total number of fuel cell vehicles in use will exceed 10,000.

A data detail to note is that the first goal specifies “newly purchased” vehicles, and the proportion of pure electric vehicles is over 50%. This point outlines where car companies can study demands and where future policies may intervene.

For new vehicle purchasers, the target vehicles will be much clearer. However, if the policy can specify that the proportion of first-time electric vehicle buyers should be over 50%, then that is truly impressive. By that time, infrastructure and products will be in a very mature state.

Other Goals:

The plan clearly states that it will promote the development of the Anting, Lingang, and Jinqiao clusters.

The Anting Innovation Port has already attracted the headquarters or R&D centers of many car manufacturers. Lingang is mainly a full industry chain layout of Tesla, and Jinqiao and Jiangqiao focus on layouts in the areas of intelligent automotive visual systems, car operating systems, automotive-grade chips, etc. Just a few days ago, Horizon Robotics signed a strategic cooperation framework agreement with the Shanghai Municipal Government and plans to build a global R&D headquarters for car AI chips and a global headquarters for central intelligent automotive computing platforms.

By 2023, no more new energy vehicle licenses will be given to plug-in hybrids or range extender models, which means this is the last window period for plug-in hybrid models. In the new energy vehicle models in Shanghai, plug-in hybrids are still the main type.

The implementation plan explicitly supports SAIC Group to develop new energy vehicles, and the proportion of new energy vehicle sales for independent brands should exceed 30%, including at least 20% for SAIC’s vehicles.

The original text of the Implementation Plan for Accelerating the Development of New Energy Vehicle Industry (2021-2025) is presented below:# Development Plan

In order to accelerate the development of the new energy vehicle industry in this city and comply with the national “New Energy Vehicle Industry Development Plan (2021-2035)” and “Smart Car Innovation and Development Strategy”, a practical implementation plan has been formulated.

1. Development Goals

Coordinating independent innovation and open cooperation, promoting application and facility support, integrating production and development and recycling, balancing government support and enterprise investment, by 2025:

The industry scale will lead domestically. The annual production of local new energy vehicles will exceed 1.2 million units; the output value of new energy vehicles will exceed 350 billion yuan, accounting for more than 35% of the city’s automobile manufacturing industry output value.
Major breakthroughs in key core technology research and development. The R&D and manufacturing of key components such as power batteries and management systems, fuel cell, driving motor and power electronics have reached the international leading level. The networked and intelligent core technologies such as chip for vehicle regulation, operating system for vehicle use, and new electronic and electrical architecture have made major progress and formed a complete supply chain.
The green transportation energy system is accelerating to achieve. The proportion of new pure electric vehicles in personal new vehicle purchases exceeds 50%. New energy vehicles are fully used in public buses, cruise taxis, party and government official vehicles in central urban areas, cargo vehicles and postal vehicles. New energy vehicles account for more than 80% of government-owned enterprise official vehicles and sanitation vehicles, more than 50% of online ride-hailing cars, heavy-duty cargo vehicles and construction vehicles have significantly increased their new energy vehicle penetration rates. The total application of fuel cell vehicles exceeds 10,000 units.
The application of networked and intelligent technologies has significantly improved. Intelligent cars with conditional autonomous driving have realized large-scale production, highly automated intelligent cars have realized commercial applications in limited areas and specific scenes, and the construction of intelligent transportation system-related facilities has made positive progress. A high-precision space-time benchmark service network has achieved full coverage.
Infrastructure support continues to be optimized. The level of charging and battery-swapping technology has been greatly improved, the facility layout continues to be optimized, and the intelligent and informational operation system has been basically established. The scale, quality and convenience of charging and battery-swapping facilities have significantly improved. Over 70 hydrogen refueling stations have been built and put into use, achieving full coverage of key application areas.
The policy system continues to be improved. The standards and regulatory system for new energy vehicle applications, hydrogen refueling, and charging and battery-swapping are mature. The construction of standards for testing, demonstration applications, and commercial operation of smart cars has made significant progress.

2. Key Work

Strengthen key common technology research and development and continuously improve industrial basic capabilities.
Strengthen the innovation of vehicle integration technology. Prioritize the development of pure electric vehicles, support local vehicle manufacturing enterprises to optimize production layout, and increase the supply of high-end pure electric vehicle models. Improve the entire industrial chain ecology of fuel cell vehicles, unblock the bottleneck of hydrogen supply for vehicle use, significantly reduce manufacturing and usage costs, and cultivate multi-level and wide-ranging fuel cell vehicle application scenarios. (City Development and Reform Commission, Economic and Information Commission, and Science and Technology Commission)1. Build a key component technology and product supply system. Accelerate the breakthrough of power battery technology, lay out the research and development and industrialization of new generation products such as solid-state batteries. Promote the development of high-power density drive motor, control system towards system integration, structural lightweighting and intelligent control. Promote the breakthroughs of key technologies, fundamental materials, and core processes in fuel cell vehicles, with significant improvement in reliability and service life of fuel cell systems. (Municipal Commission of Economy and Information Technology, Municipal Science and Technology Commission, Municipal Development and Reform Commission)
Increase efforts in core technology development of intelligent vehicles. Support related enterprises to carry out cross-disciplinary joint research and development of vehicle operating systems, automotive-grade chips, and intelligent computing platform technologies, and explore setting up a national-level innovation center for vehicle operating systems. Support the breakthroughs of core technologies such as visual recognition systems, wire-controlled chassis systems, sensors, cloud control platforms, high-precision maps, specialized testing and evaluation equipment, and roadside intelligent perception systems, and achieve the first breakthroughs of these technologies. Focus on the research and development of forward-looking basic technologies such as new electronic and electrical architecture, and support research on measurement and testing techniques and methods as well as standard system construction in related fields. (Municipal Commission of Economy and Information Technology, Municipal Development and Reform Commission, Municipal Science and Technology Commission, Municipal Market Supervision Administration)
Promote the orderly construction of hydrogen supply system for vehicles. Prioritizing the application of renewable energy hydrogen production technologies, making good use of industrial by-product hydrogen resources, and ensuring sustainable supply of hydrogen for vehicles. Support hydrogen pipeline transportation pilot projects, and promote the application of hydrogen storage and transportation technologies in various forms, such as high-pressure gaseous, cryogenic gaseous, low-temperature liquid, and solid-state, significantly reducing the cost of hydrogen storage and transportation. Support the manufacturing of hydrogen refueling equipment, and promote the research, development, and manufacturing of equipment and materials for hydrogen storage cylinder valves. (Municipal Commission of Economy and Information Technology, Municipal Development and Reform Commission, Municipal Science and Technology Commission, Municipal Housing and Urban-Rural Development Bureau, Municipal Emergency Management Bureau, Municipal Market Supervision Administration)
Build a rational, distinct, and mutually beneficial industrial ecology.
Support the development of ecologically driven enterprises. Support SAIC Group in developing new energy vehicles, with the proportion of new energy passenger car models of independent brands accounting for over 30% of sales and that of the group’s new energy vehicle sales exceeding 20% by 2025, with core technologies independently controlled and comprehensive strength leading domestically. Encourage domestic and foreign enterprises with leading technologies and strong capabilities to invest in and establish vehicle manufacturing and R&D projects in Shanghai. (Municipal Commission of Economy and Information Technology, Municipal Development and Reform Commission, Municipal State-owned Assets Supervision and Administration Commission, SAIC Group)
Set up a number of “unicorn” enterprises in the component industry. Increase precision investment promotion efforts in the field of critical components for new energy vehicles, and support local enterprises to actively engage in domestic and foreign mergers and acquisitions to strengthen the industrial chain. Intensify the reform of state-owned assets and enterprises, expand equity incentive pilot projects, support core teams’ equity holdings, and promote a number of high-quality enterprises to be spun off and listed. Through the introduction, cultivation, and restructuring of enterprises, build several “unicorn” enterprises with sales reaching the scale of tens of billions of yuan, forming a complete industrial ecology. (Municipal Commission of Economy and Information Technology, Municipal State-owned Assets Supervision and Administration Commission, Municipal Commerce Commission, Municipal Financial Work Bureau)### 3. Building Multi-level Industrial Clusters

An Ting area will focus on breakthroughs in the core technology of new energy vehicles, industrialization of key components, and demonstration applications, and build a comprehensive base integrating research and development, manufacturing, testing, application, culture and tourism, and exhibitions. Lingang New Area will accelerate the layout of the entire industry chain, continuously expand high-end new energy vehicle production capacity, promote the export of complete vehicles, and form an innovative manufacturing base with significant technological advantages, high degree of openness, and great international influence. Jin Qiao and Zhang Jiang areas will leverage their advantages in integrated circuits, artificial intelligence, software, and communication equipment industries to accelerate layout in fields such as visual recognition, in-vehicle operating systems, and vehicle-grade chips. Around the development of new energy vehicles, we will support the creation of a number of characteristic industrial parks and form an ecological complementary pattern of differentiated development. (Municipal Economic and Information Commission, Municipal Development and Reform Commission, relevant district governments, relevant development zone management committees)

4. Promoting Industry and Regional Cooperation and Opening

We will support leading enterprises to form alliances (associations) with universities and research institutions in the new energy vehicle industry, promote the integrated development of fuel cell vehicles and intelligent vehicles in the Yangtze River Delta, coordinate the layout of infrastructure, achieve mutual recognition of regulations, standards and achievements, and build an industrial chain cooperation system led by leading enterprises. (Municipal Economic and Information Commission, Municipal Development and Reform Commission, Municipal Science and Technology Commission)

3. Building a Green Transportation Energy System Promoting the integrated development of new energy vehicles and transportation

Optimizing policies to support individual use of new energy vehicles. Improving the policy of special license plates for new energy vehicles, from 2023, consumers who purchase plug-in hybrid vehicles (including extended-range vehicles) will no longer be granted new energy vehicle special license plate quotas. Exploring appropriate support for the use of new energy vehicles. Consumers who replace gasoline vehicles with new energy vehicles are allowed to retain their non-commercial passenger car quotas. (Municipal Development and Reform Commission, Municipal Transportation Commission, Municipal Economic and Information Commission)
Promoting the comprehensive electrification of vehicles in public areas. Studying policies to encourage the updating of new energy vehicle models for taxi rentals, and new energy vehicles should be used for all newly added or updated public transportation and taxi fleets. For public institutions including Party and government offices, state-owned enterprises, public welfare, post offices, etc., and leasing companies, if there are suitable models available, all newly added or updated vehicles should be pure electric vehicles or fuel cell vehicles, and if there are no suitable models available, negative list should be used. Improving the management system of operating quotas for freight vehicles and urban access permits, and gradually realizing the issuance of urban access permits only for pure electric or fuel cell freight vehicles. (Municipal Transportation Commission, Municipal Public Security Bureau, Municipal Finance Bureau, Municipal State-owned Assets Supervision and Administration Commission, Municipal Mechanical and Electrical Management Bureau, Municipal Greening and Sanitation Bureau, Municipal Commerce Commission, Municipal Postal Administration)### 3. Actively Expand Demonstration Applications of Fuel Cell Vehicles.

Support the demonstration applications of fuel cell vehicles in suburban public transportation, heavy-duty cargo transportation, cold chain transportation, environmental sanitation, and non-road mobile vehicles that meet the conditions, and promote a batch of demonstration application projects at transportation hubs such as airports, ports, and railways. Actively promote the demonstration application of fuel cell buses, with a total of no less than 50 vehicles, without increasing the burden on public transportation companies. (Municipal Development and Reform Commission, Municipal Economic and Information Commission, Municipal Transportation Commission, Municipal Bureau of Greening and City Appearance, and relevant district governments)

4. Accelerate the Development of Intelligent Vehicle Application Scenarios.

Promote the construction of a high-level autonomous driving (L3 + and above) demonstration zone, and build a national-level innovation and development platform for intelligent vehicles. Significantly reduce the comprehensive cost of autonomous driving testing, greatly increase the testing road mileage, and explore testing in areas with different types and risk levels, such as urban expressways, highways, and parking lots. Explore the commercial application of intelligent vehicles in specific industries such as connecting public transportation, logistics, environmental sanitation, and cleaning, as well as specific areas such as parks, scenic spots, airports, train stations, ports, and parking lots. Accelerate the landing of typical scenario demonstration projects, such as autonomous driving container trucks, autonomous driving travel services, elevated road unmanned cleaning vehicles, and autonomous parking in parking lots. (Municipal Development and Reform Commission, Municipal Economic and Information Commission, Municipal Transportation Commission, and Municipal Public Security Bureau)

4. Improve the Infrastructure System and Implement Supporting Guarantees for New Infrastructure.

Improve the layout of the operational charging and swapping network. Roll out a special plan for the construction of charging and swapping facilities, and strengthen its connection with the city’s land and space planning. Encourage the construction of centralized charging stations and demonstration stations for taxi charging, strictly implement the requirements for the construction of charging piles in new parking lots, and increase the proportion of DC fast charging piles. Make full use of resources such as parks, green spaces, hotels, hospitals, shopping malls, P+R parking lots, public and road parking lots, and land below elevated roads to layout operational charging facilities. Encourage property management companies operating in shopping malls and commercial buildings to exempt charging vehicle parking fees, and easing the contradiction of “oil cars occupying charging spaces” through increasing the charging fees for fuel vehicles that occupy charging parking spaces. Encourage the conversion of existing public charging piles into DC fast charging piles and strive to build or convert 10,000 fast charging piles. Improve the reporting and management system of swapping facilities, and provide subsidies to eligible swapping operations. Promote the opening of charging facilities within the public transportation parking lots where conditions permit. Strengthen the municipal platform functions of public charging and swapping facilities, and connect to one network for handling procedures, integrating information resources, and gradually achieving unified queries and payments. (Municipal Transportation Commission, Municipal Commerce Commission, Municipal Economic and Information Commission, Municipal Development and Reform Commission, and Municipal Planning and Land Resources Bureau)1. Implement the requirements for residential community charging facilities construction. Actively promote the community charging model with intelligent and orderly slow charging as the main mode and emergency fast charging as the auxiliary mode. Improve the construction standards for newly built community charging facilities and strictly implement the construction requirements. Accelerate the construction of charging demonstration communities, encourage old communities to explore models such as multiple cars to one charging pile and sharing of nearby parking spaces. Increase the guarantee for community power access, reduce electricity capacity expansion costs, and prohibit any unit or individual from obstructing the installation of charging facilities with non-justifiable reasons. (Municipal Commission of Housing and Urban-Rural Development, Municipal Planning and Natural Resources Commission, Municipal Transportation Commission, Municipal Economic and Information Commission, Municipal Development and Reform Commission, Municipal Power Company)
Promote the construction of hydrogen refueling infrastructure. Introduce a special plan for the layout of hydrogen refueling stations and establish construction approval and management methods. Support gas stations that meet the conditions to rebuild as oil-hydrogen hybrid stations under the premise of safety and controllability, and encourage the layout of 70 MPa hydrogen refueling stations. Support the construction of new hydrogen refueling stations using existing land in logistics parks, ports, and industrial parks. (Municipal Commission of Housing and Urban-Rural Development, Municipal Economic and Information Commission, Municipal Finance Bureau, Municipal Planning and Natural Resources Commission, Municipal Market Supervision Bureau)
Promote the construction of intelligent infrastructure. Implement a batch of “new infrastructure” projects for autonomous driving, promote the digital and intelligent transformation of traffic signal lights, traffic sign identification, traffic management, and information release systems. Implement a batch of smart road construction projects to build a smart city-level road infrastructure environment that integrates sensing, communication, computing, and other capabilities. (Municipal Economic and Information Commission, Municipal Development and Reform Commission, Municipal Public Security Bureau, Municipal Transportation Commission, Municipal Radio Management Bureau)
Accelerate the opening of public data resources. Promote the opening of data resources such as traffic signal lights and high-definition video monitoring, explore the construction of an intelligent car “cloud network” platform, support the testing and large-scale demonstration applications of vehicle-road coordination. Implement the opening of dedicated V2X frequency spectrum. Work to pilot the opening of high-precision maps. (Municipal Public Security Bureau, Municipal Transportation Commission, Municipal Radio Management Bureau, Municipal Economic and Information Commission, Municipal Planning and Natural Resources Commission)
Improve the institutional system to support industrial innovation.

Improve the management norms for the whole process of new energy vehicles. Improve the traceability mechanism for power batteries, implement the main responsibilities of automobile manufacturers and power battery suppliers. Propose standard specifications for new energy vehicle maintenance, inspection, financial insurance, accident claims, and residual value. Improve the standard specifications for hydrogen production, storage, transportation, and refueling for vehicles. Propose standard specifications for emergency rescue measures in case of new energy vehicle accidents. Actively promote the application of the Beidou navigation system in fields such as taxi measurement and pricing. (Municipal Economic and Information Commission, Municipal Market Supervision Bureau, Municipal Emergency Management Bureau, Municipal Transportation Commission, Municipal Commerce Commission)## 2. Improve the legal environment for innovative applications of intelligent vehicles. Explore the mechanism for exemption from regulations for autonomous driving, research comprehensive solutions for key legal constraints in testing and commercial applications, and seek support from relevant national departments. Study methods for handling traffic violations and accident liability in autonomous driving, and explore innovative insurance mechanisms. Support pilot initiatives for innovations such as testing without safety personnel in areas where conditions permit, and promote orderly expansion after gaining management experience. (Municipal Public Security Bureau, Municipal Transportation Commission, Municipal Economic and Informationization Commission, Municipal Judicial Bureau, Municipal Financial Work Bureau)

III. Security Measures

(I) Strengthen organizational security

Coordinate work related to the development of new energy vehicles and establish a special task force for the development of the new energy vehicle industry. The Municipal Commission for Development and Reform is responsible for overall coordination, the Municipal Economic and Informationization Commission is responsible for industrial development, and the Municipal Transportation Commission is responsible for leading the public sector demonstration operation guarantee. Departments related to science and technology, commerce, housing and urban-rural construction management, planning resources, public security, finance, state-owned assets, postal management, greenery and cityscape, emergency response, market supervision, institutional affairs management, and finance are responsible for their respective responsibilities, and cooperate to promote relevant key tasks. Important work items will be submitted to the municipal leadership for special coordination. (Municipal Commission for Development and Reform, Municipal Economic and Informationization Commission, Municipal Transportation Commission)

(II) Promote policy focus

Focus on planning, land, finance and tax, and financial policies to support the construction of new energy vehicle characteristic parks and key projects. Increase support for special funds such as strategic emerging industries, high-quality industrial development, and scientific and technological innovation plans, and guide enterprises to accelerate core technology research and development through the “first in line” method, and promote the industrialization of key components and the application of new technologies. Explore the establishment of a new energy vehicle development fund to encourage social capital to participate in major technology research and development, regional demonstrations, state-owned enterprise reforms and other projects related to new energy vehicles. Support the inclusion of hydrogen refueling stations, charging and changing facilities, intelligent roadside facilities and major functional platform projects in the “new infrastructure” demonstration, and provide support in terms of finance and low interest loans. Make good use of the key industry support policies of the Lingang New Area, and reduce the enterprise income tax by 15% for five years for relevant enterprises in the new energy automotive field engaged in integrated circuits, artificial intelligence key areas and related products (technology) businesses and carrying out substantive production or R&D activities from the date of establishment. Introduce incentive policies to support the development of fuel cell vehicles, and provide subsidies for vehicle demonstration and operation, key component applications, and hydrogen refueling station construction and operation. (Municipal Finance Bureau, Municipal Taxation Bureau, Municipal Economic and Informationization Commission, Municipal Commission for Development and Reform, Municipal Transportation Commission)

(III) Implement talent incentives

Provide support such as direct settlement and talent awards to outstanding domestic and foreign talents in the field of new energy vehicles who meet the conditions according to relevant regulations. Accelerate the implementation of enterprise salary system reform and improve talent innovation tolerance, enterprise assessment and incentive mechanisms. (Municipal Economic and Informationization Commission, Municipal Human Resources and Social Security Bureau, Municipal Finance Bureau, Municipal Taxation Bureau, Municipal SASAC)🔗Information source: Shanghai Municipal People’s Government

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.

Shanghai Municipal Government: Annual production of new energy vehicles exceeds 1.2 million, optimizing the legal environment for innovative applications of intelligent vehicles.