China will implement the world’s first mandatory energy consumption limits for electric passenger vehicles on January 1 2026, establishing binding efficiency thresholds that could influence global automotive standards.
The national standard, formally titled “Limits of Energy Consumption for Electric Vehicles – Part 1: Passenger Cars” (GB 36980.1—2025), replaces previous voluntary guidelines with legally enforceable requirements for newly produced battery electric vehicles (BEVs).
According to China Central Television, as cited by IT Home, the regulation establishes electricity consumption thresholds differentiated by vehicle weight and technical characteristics. For pure electric passenger cars with a curb weight of around two tonnes, the new requirement sets a maximum electricity consumption of 15.1 kilowatt-hours per 100 kilometres.
The mandatory standard tightens energy consumption requirements by approximately 11% compared to the previous recommended version. Chinese regulators say the limits were set after assessing current energy consumption of pure electric passenger cars, energy-saving technology potential, cost-control considerations, and special-vehicle category performance characteristics.
Purchase tax exemptions linked to efficiency
The new energy consumption standard will be directly linked to financial incentives through updated technical requirements for purchase tax exemptions in 2026 and 2027. The Ministry of Industry and Information Technology, Ministry of Finance, and State Taxation Administration have confirmed that pure electric passenger cars must meet the mandatory energy consumption limits to remain eligible for tax exemptions.
Vehicles already listed in the purchase tax exemption catalogue by the end of 2025 that comply with the updated requirements will transition into the 2026 catalogue, while non-compliant models may be removed from eligibility.
The regulation applies specifically to pure electric passenger vehicles and does not cover plug-in hybrid or extended-range models. Following technical upgrades to meet the standard, vehicles with the same battery capacity are expected to see an average increase of about 7% in driving range due to reduced energy consumption.
Manufacturers face compliance pressure
For major Chinese automakers including BYD and Geely, the new regulation formalises efficiency thresholds that many newer pure electric passenger models already meet. Compliant vehicles can continue production with minimal changes, while non-compliant models may require technical upgrades or face removal from production and purchase tax exemption eligibility.
The standard primarily affects two-tonne-class vehicles and other heavier models, prompting automakers to prioritise energy-efficiency improvements across platforms and trim levels to remain competitive under the new regulatory framework.
Manufacturers will be required to carry out technical upgrades on newly produced vehicles to ensure compliance once the standard takes effect. The efficiency gains are attributed to system-level improvements rather than increases in battery capacity.
The Ministry of Industry and Information Technology, National Development and Reform Commission, and State Administration for Market Regulation jointly emphasised accelerating the introduction of energy consumption and battery recycling standards during a new energy vehicle industry symposium in July 2025.
The mandatory energy consumption standard represents a significant shift in global automotive regulation, potentially setting a precedent for similar efficiency requirements in other markets as governments worldwide seek to maximise the environmental benefits of electric vehicle adoption.
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