China: Notice on Passenger Cars Corporate Average Fuel Consumption

 

China has published a Notice on Passenger Cars Corporate Average Fuel Consumption and New Energy Vehicle Credits Regulation in 2026-2027.

The notification document specifies the requirements for the proportion of CAFC & NEV credits in 2026—2027, optimizes and adjusts the technical specifications requirements for new energy vehicles.

In accordance with the Notice:

1. The new energy vehicle credit ratio requirements for 2026 and 2027 are 48% and 58% respectively;
2. For domestic passenger car manufacturers with an annual production volume of less than 2,000 vehicles and independent production, R&D and operations; and for imported passenger car suppliers authorized by foreign passenger car manufacturers with an import volume of less than 2,000 vehicles, if their enterprise average fuel consumption decreases by more than 4% compared with the previous year, the compliance value shall be relaxed by 60% based on the enterprise average fuel consumption requirement specified in GB27999 on the evaluation methods and indicators for passenger car fuel consumption, and decreased by 2%. For those whose percentages are less than 4%, the compliance threshold will be relaxed by 30%.
3. When calculating the compliance threshold for new energy vehicle credits, passenger car companies shall calculate the production or import volume of low-fuel-consumption passenger cars at 0.1 times their quantity.
4. The new energy passenger vehicle model credits for 2026-2027 shall be determined in accordance with the calculation method for new energy passenger vehicle model credits, as shown in the attachment.
5. In the calculation of enterprise average fuel consumption credits for 2026-2027, models with standard off-cycle technology and off-cycle energy-saving effects will continue to be given a certain amount of fuel consumption reduction or exemption. Before the release of the new off-cycle technology/device credit calculation regulations, the notice on matters related to the average fuel consumption of passenger car companies and the management of new energy vehicle credits for 2024-2025 shall apply.

To find out more about Chinese vehicle regulations, emissions requirements and GB standards, please do not hesitate to contact the Institute for Global Automotive Regulatory Research.