New energy vehicles are vehicles that use non-conventional vehicle fuels as a power source (or conventional vehicle fuels with new on-board power units) and incorporate advanced technology in vehicle dynamics and driving control. The technical principles are advanced, with new technologies and new structures. 

New energy vehicles include pure electric vehicles, extended-range electric vehicles, hybrid electric vehicles, fuel cell electric vehicles and hydrogen-powered vehicles.

In November 2020, the General Office of the State Council issued the New Energy Vehicle Industry Development Plan (2021-2035), which calls for the in-depth implementation of the national energy vehicle development strategy. To promote the high-quality and sustainable development of China's new energy vehicle industry and accelerate the construction of an automotive powerhouse.

At the end of May 2021, according to the China Association of Automobile Manufacturers (CAAM), the number of new energy vehicles in China was around 5.8 million, accounting for about 50% of China's new energy vehicle ownership.

On 14 December 2021, the latest data released by the China Association of Automobile Manufacturers (CAAM) showed that China's auto production and sales will reach about 26.1 million units in 2021, an increase of 3.1% year-on-year, ending three consecutive years of growth. By 2022, China's auto sales are expected to reach 27.5 million units, up 5.4% year-on-year, with passenger car sales up 8% and new energy vehicle sales set to rise sharply. Reaching 5 million.