中14th CPC to inject 53 trillion won to boost demand in the automobile market

*This content was translated by AI.

At the 4th meeting of the 14th National People's Congress in Beijing on March 5, 2026, China announced a new five-year economic development plan and industrial roadmap centered on smartization and eco-friendliness. China's gross domestic product (GDP) grew 5% year-on-year to 140.19 trillion yuan in 2025, of which the auto industry was seen as a key driver of economic growth. Production in high-tech and equipment manufacturing rose 9.4% and 9.2% year-on-year, respectively, above overall industrial growth, while annual production of eco-friendly vehicles (NEVs) exceeded 16 million units. The national network of electric vehicle charging facilities that supports this also exceeds 20 million units, accelerating the spread of electric mobility.

In accordance with the 15th five-year plan cycle from 2026 to 2030, China plans to focus on cultivating "new productivity," which means innovation-driven growth. In order to establish a modern industrial system, emerging strategic industries and future industries are managed separately. Along with integrated circuits, aerospace and biopharmaceuticals, "low-level economies" have been selected as key pillars of emerging strategic industries, suggesting strong policy support for aeromobility technologies such as flying cars and drone logistics. In the long run, "Embodied Intelligence" was first specified as a future industry along with next-generation energy systems, quantum technology, brain-computer interfaces, and 6G communication. Embody intelligence is an AI system combined with physical machines and is expected to lead artificial intelligence innovation in smart manufacturing and intelligent vehicles in the future.

Policy priorities for 2026 are focused on boosting consumption and accelerating smart and green transitions. The Chinese government plans to stimulate demand in the automobile market by allocating 250 billion yuan worth of ultra-long-term special government bonds to vehicle compensation sales programs. 20 million yuan will also be invested in large-scale equipment upgrades to help modernize the automobile manufacturing process and encourage private investment in connected car and battery recycling. AI+ strategy to integrate artificial intelligence into all industries will also intensify. To this end, we build large-scale intelligent computing clusters and upgrade 5G-based industrial internet networks to enhance autonomous driving algorithm learning and vehicle-road-cloud integrated infrastructure.

As an environmental goal for eco-friendly transformation, a plan to reduce carbon emissions to GDP by about 3.8% in 2026 was proposed. It plans to accelerate the construction of modern power systems, expand smart grids and energy storage technologies (ESSs), and increase the share of renewable energy power. This is the basis for increasing the sustainability of electric vehicles and supporting vehicle-to-power grid integration (V2G) technology. It will also tighten monitoring of energy-intensive and high-emission projects, pushing traditional automakers to transition to electrification and low-carbon manufacturing processes. The challenges of China's automobile industry are now expanding beyond just leading the electric vehicle market to preoccupying early positions in emerging fields such as aviation mobility and embodiment intelligence.

<© STARNEWS. All rights reserved. No reproduction or redistribution allowed.>

*This content was translated by AI.