China to Implement World's First Mandatory EV Energy Consumption Limits in 2026

New National Standard Takes Effect

China will implement the world's first mandatory energy consumption limits for electric passenger vehicles, effective January 1, 2026. The new national standard, formally titled 'Energy Consumption Limits for Electric Vehicles Part 1 Passenger Cars' (GB 36980.1—2025), replaces previous voluntary guidelines and establishes binding electricity consumption thresholds. This move, announced by the State Administration for Market Regulation, signifies a significant step in global automotive efficiency standards.

Stricter Efficiency Requirements and Targets

The new regulation tightens energy consumption requirements by approximately 11% compared to the previous recommended framework. These thresholds are differentiated based on vehicle weight and technical characteristics. For instance, pure electric passenger cars with a curb weight of around 2000 kilograms (or two tonnes) will be capped at a maximum electricity consumption of 15.1 kilowatt-hours per 100 kilometers. Authorities indicate that these limits were determined after a comprehensive assessment of current EV energy consumption, the potential of energy-saving technologies, cost-control considerations, and the performance characteristics of various vehicle categories. Manufacturers will be required to undertake technical upgrades to ensure newly produced vehicles comply with these stricter standards. It is anticipated that these technical modifications could lead to an average increase of about 7% in driving range for vehicles with the same battery capacity, primarily due to reduced energy consumption.

Impact on Incentives and the EV Market

The Ministry of Industry and Information Technology (MIIT), Ministry of Finance, and State Taxation Administration have directly linked the new energy consumption standard to financial incentives. Pure electric passenger cars must meet these mandatory energy consumption limits to qualify for purchase tax exemptions in 2026 and 2027. Vehicles currently listed in the purchase tax exemption catalogue that do not comply with the updated requirements may be removed. The policy package also introduces higher technical thresholds for plug-in hybrid electric vehicles (PHEVs) and extended-range models, including requirements for a minimum pure electric driving range, such as no less than 100 km for PHEVs, to be eligible for incentives. This regulatory shift is expected to compel automakers to prioritize energy efficiency improvements across their vehicle platforms and trim levels, potentially influencing global EV development.