{"id":1766,"date":"2026-08-20T16:00:00","date_gmt":"2026-08-20T16:00:00","guid":{"rendered":"https:\/\/news.hscodematch.com\/china-strengthens-passenger-cars-fuel-efficiency-and-new-energy\/"},"modified":"2026-09-09T01:54:45","modified_gmt":"2026-09-09T01:54:45","slug":"china-caps-passenger-car-fuel-use-at-4-0-litres-per-100-km-and","status":"publish","type":"post","link":"https:\/\/hscodematch.com\/news\/china-caps-passenger-car-fuel-use-at-4-0-litres-per-100-km-and\/","title":{"rendered":"China Caps Passenger Car Fuel Use at 4.0 Litres per 100 km and Requires 58% New Energy Fleet Share from 1 January 2027"},"content":{"rendered":"\n<p class=\"wp-block-paragraph hsn-lede\">China has updated fuel consumption evaluation methods and introduced corporate average fuel consumption credits for passenger cars and new energy vehicles, reinforcing fuel efficiency targets and incentivizing clean mobility.<\/p>\n<p class=\"wp-block-paragraph\">China has updated its fuel consumption rules for passenger cars and introduced a credit system for new energy vehicles, setting stricter efficiency targets and rewarding manufacturers that shift to cleaner models. The changes, which take effect on <strong>1 January 2027<\/strong>, apply to every company that sells or imports cars in China and tie the cost of compliance to the delivered cost of each vehicle.<\/p>\n<p class=\"wp-block-paragraph\">The new rules cover all passenger cars\u2014from compact sedans to SUVs\u2014and set a corporate average fuel consumption target of 4.0 litres per 100 kilometres for 2027, down from 4.5 litres in 2025<sup class=\"hsn-cite\"><a href=\"#hsn-ref-1\" id=\"hsn-cite-1\">1<\/a><\/sup>. At the same time, the required share of new energy vehicles in each manufacturer\u2019s fleet rises to <strong>58%<\/strong> in 2027, up from 48% in 2026<sup class=\"hsn-cite\"><a href=\"#hsn-ref-1\">1<\/a><\/sup>. Companies that miss the targets must buy credits from rivals that exceed them, turning compliance into a direct cost for laggards.<\/p>\n<p class=\"wp-block-paragraph\">It comes after years of gradual tightening. The original 2025 targets were first published in 2020, and the latest adjustment was notified to the World Trade Organization on <strong>20 August 2026<\/strong><sup class=\"hsn-cite\"><a href=\"#hsn-ref-2\" id=\"hsn-cite-2\">2<\/a><\/sup>. The notification does not open a new comment period, signalling that the rules are final.<\/p>\n<h2 class=\"wp-block-heading\">The credit system and who pays for it<\/h2>\n<p class=\"wp-block-paragraph\">Under the new system, every car sold earns or costs credits based on its fuel efficiency and whether it is a new energy vehicle. A battery-electric car, for example, generates positive credits, while a petrol SUV with high fuel consumption generates negative ones. At the end of each year, manufacturers must balance their books: positive credits can be sold, negative ones must be covered by buying credits or paying a penalty<sup class=\"hsn-cite\"><a href=\"#hsn-ref-1\">1<\/a><\/sup>.<\/p>\n<figure class=\"hsn-fig hsn-fig--solid hsn-fig--v3\" data-at=\"the-credit-system-and-who-pays-for-it\">\n  <div class=\"hsn-fig__table\">\n    <h4>Who owes the full target, and who gets a discount<\/h4>\n    <div class=\"pcrstb-wrap\"><table>\n      <thead>\n        <tr><th>Question<\/th><th>Standard regime<\/th><th>Importers under 2,000 cars a year<\/th><\/tr>\n      <\/thead>\n      <tbody>\n        <tr><th>Target reduction<\/th><td>None \u2014 full target applies<\/td><td>Up to 60%<\/td><\/tr>\n        <tr><th>Condition<\/th><td>None<\/td><td>Cut fuel consumption at least 4% from previous year<\/td><\/tr>\n        <tr><th>Cost of a miss<\/th><td>Buy credits or pay penalty<\/td><td>Buy credits or pay penalty<\/td><\/tr>\n      <\/tbody>\n    <\/table><\/div>\n  <\/div>\n<\/figure>\n<p class=\"wp-block-paragraph\">The delivered cost of compliance falls on the manufacturer. For a company that sells 100,000 cars a year, missing the 2027 target by 0.1 litres per 100 km could add \u00a5150 million ($21 million; \u00a316 million) to its annual bill<sup class=\"hsn-cite\"><a href=\"#hsn-ref-1\">1<\/a><\/sup>. Smaller importers\u2014those selling fewer than 2,000 cars a year\u2014can apply for a <strong>60% reduction<\/strong> in their target if they cut fuel consumption by at least 4% from the previous year<sup class=\"hsn-cite\"><a href=\"#hsn-ref-1\">1<\/a><\/sup>.<\/p>\n<p class=\"wp-block-paragraph\">The rules also introduce a multiplier for low-fuel-consumption vehicles. If a manufacturer sells a plug-in hybrid that consumes 3.0 litres per 100 km, only 0.1 cars are counted against its fleet average, effectively rewarding efficiency even within the petrol segment<sup class=\"hsn-cite\"><a href=\"#hsn-ref-1\">1<\/a><\/sup>.<\/p>\n<h2 class=\"wp-block-heading\">What the rules change in testing and approval<\/h2>\n<p class=\"wp-block-paragraph\">The amendment to national standard GB 27999\u20142025 adds new calculation methods for corporate average CO\u2082 emissions. It specifies how to measure real-world fuel consumption, how to weight different vehicle types, and how to account for low-fuel-consumption models<sup class=\"hsn-cite\"><a href=\"#hsn-ref-2\">2<\/a><\/sup>. The standard also sets the formula for converting fuel consumption into CO\u2082 emissions, ensuring that the credit system aligns with China\u2019s broader climate goals.<\/p>\n<p class=\"wp-block-paragraph\">Testing and approval must now be done before a car is sold. Manufacturers must submit test reports to the Ministry of Industry and Information Technology (MIIT) and receive a certificate for each model<sup class=\"hsn-cite\"><a href=\"#hsn-ref-2\">2<\/a><\/sup>. The ministry said in a statement that the new methods will \u201censure consistency between laboratory results and on-road performance\u201d<sup class=\"hsn-cite\"><a href=\"#hsn-ref-2\">2<\/a><\/sup>.<\/p>\n<p class=\"wp-block-paragraph\">The rules leave open how often manufacturers must retest existing models. The notification does not specify whether a car certified in 2025 must be retested in 2027, creating uncertainty for companies that sell long-lived models.<\/p>\n<h2 class=\"wp-block-heading\">How the rules compare with earlier measures<\/h2>\n<p class=\"wp-block-paragraph\">China first introduced fuel consumption targets in 2012, setting a 6.9-litre standard for 2015. The 2025 target of 4.5 litres was adopted in 2020, and the 2027 target of 4.0 litres marks the steepest annual reduction yet<sup class=\"hsn-cite\"><a href=\"#hsn-ref-1\">1<\/a><\/sup>. The new energy vehicle credit requirement has also risen sharply: from 10% in 2019 to 58% in 2027<sup class=\"hsn-cite\"><a href=\"#hsn-ref-1\">1<\/a><\/sup>.<\/p>\n<figure class=\"hsn-fig hsn-fig--solid hsn-fig--v3\" data-at=\"how-the-rules-compare-with-earlier-measures\">\n    <div class=\"hsn-fig__cols\">\n    <h4>Corporate average fuel consumption target, L\/100 km<\/h4>\n    <div class=\"hsn-fig__col\" data-series=\"1\">\n      <span class=\"hsn-fig__num\">6.9 L<\/span>\n      <span class=\"hsn-fig__coltrack\"><span class=\"hsn-fig__colfill\" data-v=\"100\"><\/span><\/span>\n      <span class=\"hsn-fig__lab\">2015 standard (set 2012)<\/span>\n    <\/div>\n    <div class=\"hsn-fig__col\" data-series=\"1\">\n      <span class=\"hsn-fig__num\">4.5 L<\/span>\n      <span class=\"hsn-fig__coltrack\"><span class=\"hsn-fig__colfill\" data-v=\"65\"><\/span><\/span>\n      <span class=\"hsn-fig__lab\">2025 target (set 2020)<\/span>\n    <\/div>\n    <div class=\"hsn-fig__col\" data-series=\"1\">\n      <span class=\"hsn-fig__num\">4.0 L<\/span>\n      <span class=\"hsn-fig__coltrack\"><span class=\"hsn-fig__colfill\" data-v=\"60\"><\/span><\/span>\n      <span class=\"hsn-fig__lab\">2027 target<\/span>\n    <\/div>\n  <\/div><\/figure>\n<p class=\"wp-block-paragraph\">The rules sit alongside other incentives. A separate trade-in subsidy, running until <strong>31 December 2026<\/strong>, offers up to <strong>\u00a520,000 ($2,800; \u00a32,100)<\/strong> to consumers who scrap an old petrol car and buy a new electric one<sup class=\"hsn-cite\"><a href=\"#hsn-ref-3\" id=\"hsn-cite-3\">3<\/a><\/sup>. Guangzhou has also extended its purchase tax exemption for new energy vehicles, though the benefit is halved from 1 January 2026<sup class=\"hsn-cite\"><a href=\"#hsn-ref-4\" id=\"hsn-cite-4\">4<\/a><\/sup>.<\/p>\n<h2 class=\"wp-block-heading\">What the rules leave alone<\/h2>\n<p class=\"wp-block-paragraph\">The new system does not change the list of vehicles that qualify as new energy. Battery-electric, plug-in hybrid, and fuel-cell cars remain eligible, while mild hybrids and vehicles with small electric ranges do not<sup class=\"hsn-cite\"><a href=\"#hsn-ref-1\">1<\/a><\/sup>. The rules also do not alter the way credits are traded: the market remains closed to financial speculators, and credits can only be bought and sold between manufacturers.<\/p>\n<figure class=\"hsn-fig hsn-fig--solid hsn-fig--v3\" data-at=\"what-the-rules-leave-alone\">\n  <div class=\"hsn-fig__cards\">\n    <h4>What the new rules do not touch<\/h4>\n    <div class=\"hsn-fig__card\" data-series=\"1\">\n      <strong>New energy vehicle list<\/strong>\n      <span>Battery-electric, plug-in hybrid and fuel-cell cars stay eligible; mild hybrids stay out<\/span>\n    <\/div>\n    <div class=\"hsn-fig__card\" data-series=\"1\">\n      <strong>Closed credit market<\/strong>\n      <span>Trading stays between manufacturers only; no financial speculators<\/span>\n    <\/div>\n    <div class=\"hsn-fig__card\" data-series=\"1\">\n      <strong>Low-volume importer exemption<\/strong>\n      <span>Under 2,000 cars a year keeps a reduced target<\/span>\n    <\/div>\n  <\/div>\n<\/figure>\n<p class=\"wp-block-paragraph\">The rules also leave intact the exemption for low-volume importers. Companies that sell fewer than 2,000 cars a year can apply for a reduced target, provided they cut fuel consumption by at least 2% annually<sup class=\"hsn-cite\"><a href=\"#hsn-ref-1\">1<\/a><\/sup>. The exemption is designed to protect niche brands, but it also means that some high-emission sports cars continue to enter the market without penalty.<\/p>\n<h2 class=\"wp-block-heading\">The next deadline and what it signals<\/h2>\n<p class=\"wp-block-paragraph\">The first compliance period under the new rules runs from <strong>1 January 2027 to 31 December 2027<\/strong>. Manufacturers must submit their 2027 data to MIIT by <strong>31 March 2028<\/strong>, and the ministry will publish the results by 30 June 2028<sup class=\"hsn-cite\"><a href=\"#hsn-ref-1\">1<\/a><\/sup>. Companies that fail to meet their targets will have until <strong>31 December 2028<\/strong> to buy credits or pay penalties.<\/p>\n<figure class=\"hsn-fig hsn-fig--solid hsn-fig--v3\" data-at=\"the-next-deadline-and-what-it-signals\">\n  <div class=\"hsn-fig__table\">\n    <h4>The 2027 compliance clock<\/h4>\n    <div class=\"pcrstb-wrap\"><table>\n      <thead>\n        <tr><th>Date<\/th><th>Who is caught<\/th><th>What falls due<\/th><\/tr>\n      <\/thead>\n      <tbody>\n        <tr><th>1 Jan 2027<\/th><td>All manufacturers and importers<\/td><td>First compliance period opens; 4.0 L target and 58% NEV share apply<\/td><\/tr>\n        <tr><th>31 Mar 2028<\/th><td>Manufacturers<\/td><td>Submit 2027 data to MIIT<\/td><\/tr>\n        <tr><th>30 Jun 2028<\/th><td>MIIT<\/td><td>Publish results<\/td><\/tr>\n        <tr><th>31 Dec 2028<\/th><td>Manufacturers missing targets<\/td><td>Buy credits or pay penalties<\/td><\/tr>\n      <\/tbody>\n    <\/table><\/div>\n  <\/div>\n<\/figure>\n<p class=\"wp-block-paragraph\">The timing signals China\u2019s push to meet its 2030 carbon peak. With the new energy vehicle credit requirement set to rise to 65% in 2028, the 2027 rules are a stepping stone rather than a final destination. For manufacturers, the message is clear: the cost of compliance will keep rising, and the only way to avoid it is to sell more electric cars.<\/p>\n<h2 class=\"wp-block-heading hsn-refs-title\">Sources<\/h2>\n<ol class=\"hsn-refs\">\n<li id=\"hsn-ref-1\"><a class=\"hsn-refs__back\" href=\"#hsn-cite-1\" aria-label=\"Back to reference 1 in the text\">\u21a9<\/a> <a href=\"https:\/\/app.www.gov.cn\/govdata\/gov\/202511\/11\/539929\/article.html\" rel=\"noopener\" target=\"_blank\">2026-2027\u5e74\u5ea6\u4e58\u7528\u8f66\u4f01\u4e1a\u71c3\u6599\u6d88\u8017\u91cf\u4e0e\u65b0\u80fd\u6e90\u6c7d\u8f66\u79ef\u5206\u7ba1\u7406\u901a\u77e5<\/a> <span class=\"hsn-refs__url\">https:\/\/app.www.gov.cn\/govdata\/gov\/202511\/11\/539929\/article.html<\/span><\/li>\n<li id=\"hsn-ref-2\"><a class=\"hsn-refs__back\" href=\"#hsn-cite-2\" aria-label=\"Back to reference 2 in the text\">\u21a9<\/a> <a href=\"https:\/\/docs.wto.org\/imrd\/directdoc.asp?DDFDocuments\/T\/G\/TBTN24\/CHN1914A1.docx\" rel=\"noopener\" target=\"_blank\">Amendment No.1 of GB 27999\u20142025 Fuel consumption evaluation methods and targets for passenger cars<\/a> <span class=\"hsn-refs__url\">https:\/\/docs.wto.org\/imrd\/directdoc.asp?DDFDocuments\/T\/G\/TBTN24\/CHN1914A1.docx<\/span><\/li>\n<li id=\"hsn-ref-3\"><a class=\"hsn-refs__back\" href=\"#hsn-cite-3\" aria-label=\"Back to reference 3 in the text\">\u21a9<\/a> <a href=\"https:\/\/www.mofcom.gov.cn\/zwgk\/zcfb\/art\/2025\/art_2a65998b79af47eaaf2115ef1ce234f9.html\" rel=\"noopener\" target=\"_blank\">2026 Year Automotive Trade-In Subsidy Implementation Details<\/a> <span class=\"hsn-refs__url\">https:\/\/www.mofcom.gov.cn\/zwgk\/zcfb\/art\/2025\/art_2a65998b79af47eaaf2115ef1ce234f9.html<\/span><\/li>\n<li id=\"hsn-ref-4\"><a class=\"hsn-refs__back\" href=\"#hsn-cite-4\" aria-label=\"Back to reference 4 in the text\">\u21a9<\/a> <a href=\"https:\/\/czj.gz.gov.cn\/zwgk\/zfxxgkml\/czyjs\/jsjfxx\/content\/post_9125741.html\" rel=\"noopener\" target=\"_blank\">Guangzhou Announces Continuation and Optimization of New Energy Vehicle Purchase Tax Exemption Policy<\/a> <span class=\"hsn-refs__url\">https:\/\/czj.gz.gov.cn\/zwgk\/zfxxgkml\/czyjs\/jsjfxx\/content\/post_9125741.html<\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>China has updated fuel consumption evaluation methods and introduced corporate average fuel consumption credits for passenger cars and new energy\u2026<\/p>\n","protected":false},"author":1,"featured_media":1764,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_regnews_id":"35362","_hsn_citations":"[{\"n\":1,\"url\":\"https:\/\/app.www.gov.cn\/govdata\/gov\/202511\/11\/539929\/article.html\",\"label\":\"2026-2027\u5e74\u5ea6\u4e58\u7528\u8f66\u4f01\u4e1a\u71c3\u6599\u6d88\u8017\u91cf\u4e0e\u65b0\u80fd\u6e90\u6c7d\u8f66\u79ef\u5206\u7ba1\u7406\u901a\u77e5\"},{\"n\":2,\"url\":\"https:\/\/docs.wto.org\/imrd\/directdoc.asp?DDFDocuments\/T\/G\/TBTN24\/CHN1914A1.docx\",\"label\":\"Amendment No.1 of GB 27999\u20142025 Fuel consumption evaluation methods and targets for passenger cars\"},{\"n\":3,\"url\":\"https:\/\/www.mofcom.gov.cn\/zwgk\/zcfb\/art\/2025\/art_2a65998b79af47eaaf2115ef1ce234f9.html\",\"label\":\"2026 Year Automotive Trade-In Subsidy Implementation Details\"},{\"n\":4,\"url\":\"https:\/\/czj.gz.gov.cn\/zwgk\/zfxxgkml\/czyjs\/jsjfxx\/content\/post_9125741.html\",\"label\":\"Guangzhou Announces Continuation and Optimization of New Energy Vehicle Purchase Tax Exemption Policy\"}]","_hsn_no_sources":"","_hsn_content_hash":"b158f507522bf1b85326562777c544a38c76758d:0ebf1410cdcb74d1164d0914d0e3bcc341046576","_yoast_wpseo_focuskw":"passenger cars","footnotes":""},"categories":[15],"tags":[67],"class_list":["post-1766","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-standards-conformity","tag-china"],"_links":{"self":[{"href":"https:\/\/hscodematch.com\/news\/wp-json\/wp\/v2\/posts\/1766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hscodematch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hscodematch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hscodematch.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hscodematch.com\/news\/wp-json\/wp\/v2\/comments?post=1766"}],"version-history":[{"count":5,"href":"https:\/\/hscodematch.com\/news\/wp-json\/wp\/v2\/posts\/1766\/revisions"}],"predecessor-version":[{"id":1847,"href":"https:\/\/hscodematch.com\/news\/wp-json\/wp\/v2\/posts\/1766\/revisions\/1847"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hscodematch.com\/news\/wp-json\/wp\/v2\/media\/1764"}],"wp:attachment":[{"href":"https:\/\/hscodematch.com\/news\/wp-json\/wp\/v2\/media?parent=1766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hscodematch.com\/news\/wp-json\/wp\/v2\/categories?post=1766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hscodematch.com\/news\/wp-json\/wp\/v2\/tags?post=1766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}