Core Viewpoint - The article discusses the recent updates to the management of average fuel consumption and new energy vehicle (NEV) credit systems for passenger car enterprises in China, emphasizing the importance of these policies in promoting energy conservation and the development of the NEV industry [4][5][6]. Background of Policy Implementation - The NEV credit management policy has significantly contributed to energy conservation and the rapid development of the NEV industry in China, with the average fuel consumption of passenger cars decreasing from 6.43 liters per 100 km in 2016 to 3.31 liters per 100 km in 2024, a nearly 50% reduction [7]. - NEV production increased from 517,000 units in 2016 to 12.888 million units in 2024, representing a 23-fold increase. By November 2025, NEV sales reached 14.907 million units, accounting for 47.5% of total new car sales [7][8]. Significance of the Policy - The implementation of the 2026-2027 NEV credit management policy is crucial for promoting industrial development and achieving carbon neutrality goals. It aims to transition from fuel efficiency to carbon emission management, raising technical thresholds and encouraging enterprises to accelerate their shift to new energy [9]. - The policy addresses the oversupply of credits and low compliance costs by increasing credit thresholds, thereby restoring the scarcity and liquidity of the credit market [9]. - It emphasizes the need for accurate reporting of fuel consumption and credit data, enhancing regulatory oversight to prevent false reporting and encouraging companies to improve fuel economy and expand NEV production [9]. Key Content of the Policy - The NEV credit ratio for 2026 and 2027 is set at 48% and 58%, respectively, with a 10 percentage point annual increase. The average credit value for standard NEV models is reduced by approximately 50% compared to the previous phase [11][12]. - The credit calculation method for pure electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) has been adjusted, with new flexibility in credit trading and a credit pool management system introduced [11][15]. Adjustments to Technical Requirements - The policy raises technical requirements for NEV models, including optimizing energy consumption targets and introducing new performance metrics for low-temperature endurance [15]. - For PHEVs, the fuel consumption requirements are tightened, and for fuel cell vehicles, the standards for power and operating conditions are elevated [15][16]. Other Adjustments to Align with Industry Trends - The policy increases the reward for low fuel consumption vehicles and continues to offer benefits for small-scale manufacturers, allowing for more lenient compliance standards based on production volumes [17]. - It also maintains incentives for companies that demonstrate significant reductions in average fuel consumption from the previous year [17].