China has set a target for electric vehicles and hybrids to account for 70% of new-car sales by 2030, as Beijing seeks to accelerate the transition to electrified mobility and expand the global influence of its automotive industry.

The target forms part of China’s latest five-year plan for the automotive sector, prepared by nine government agencies and released Sept. 11.

The plan also calls for electric vehicles to represent 40% of new commercial-vehicle sales by 2030 and for autonomous-driving technology to be deployed at scale.

China has already exceeded its previous electrification target. The government had aimed for EVs and hybrids to reach 20% of new-car sales by 2025, but new-energy vehicles accounted for 54% of sales last year, according to Passenger Car Association data. The share increased to 65% in August.

The plan also aims to strengthen the position of Chinese automakers in global markets. Several manufacturers are expected to enter the world’s top 10 by sales, while Beijing wants Chinese companies to play a greater role in developing international automotive standards.

The industry faces significant challenges, however. Chinese vehicle sales fell 21% in the first eight months of the year, while a prolonged price war has pressured profitability and raised concerns over safety and quality.

The government is seeking greater industry consolidation and the exit of inefficient manufacturers, while introducing additional standards covering batteries, driver-assistance systems and vehicle components.

Battery technology and recycling are also priorities, including standards for emerging chemistries such as solid-state batteries and improved recovery of lithium, cobalt and nickel.

The strategy underlines Beijing’s ambition to remain a global leader in electric vehicles while reshaping the structure and competitiveness of its domestic automotive industry.