A production line is seen at a subsidiary of Beijing Electric Vehicle Co., Ltd., a new energy vehicle producer, in Cangzhou, Hebei province. (Photo/Xinhua)

China will significantly boost the new-energy vehicle (NEV) sector over the next 15 years, aiming to raise the proportion of this segment to 20 percent of total new auto sales by 2025, and make NEV sales mainstream by 2035, with all public-sector vehicles to be NEVs, according to a new development plan released on Monday.

The development plan for the NEV sector (2021-35), issued by the State Council, China's cabinet, also calls for efforts to accelerate NEV research and development, form a new industry ecosystem, spur integrated development, improve related infrastructure and pursue international cooperation.

China "will make breakthroughs in core technologies, improve conditions for industrial development, promote high-quality and sustainable development for the NEV sector, and accelerate the building of auto manufacturing power," the development plan reads.

The plan came just days after the fifth plenary session of the Communist Party of China Central Committee issued outlines for the 14th Five-Year Plan (2021-25) and long-range targets through 2035, which put heavy emphasis on the role of the domestic market and indigenous innovation in boosting sustainable economic growth.

The NEV sector, where China is a leader in various aspects such as sales, is set to play an important role in both development strategies, according to officials and industry experts. 

In September, domestic NEV sales hit a record high, with sales up 67.7 percent year-on-year to 138,000 NEV units, according to data from the China Association of Automobile Manufacturers (CAAM). In the same month, China produced 136,000 NEVs, up 48 percent year-on-year.

The huge NEV market has attracted foreign carmakers to boost investment in China, most notably US electric carmaker Tesla's Gigafactory in Shanghai, which has already started production and shipped thousands of cars to Europe.

The development plan on Monday specifically called for breakthroughs in research and development of batteries and other core components, artificial intelligence, autonomous driving and other cutting-edge technologies. The plan also called for efforts in battery recycling to ensure environmental protection. 

The NEV sector is crucial in China's bold plan to peak carbon dioxide emissions by 2030 and reach carbon neutrality by 2060.

Given the essential role of the NEV sector in China's long-term development strategies — from economic growth to technological innovation to green production — major policy support could be expected in the coming years to boost development, including favorable tax policies, experts said.