China plans to raise NEVs to 20% of all auto sales by 2025

China, on Monday, unveiled a development plan for its new energy vehicle (NEV) industry from 2021-2035 that aims to accelerate the country into an automotive powerhouse.

The plan, released by the State Council, China's cabinet, listed five strategic tasks: to improve technology innovation capacity, build new-type industry ecosystems, advance industrial integration and development, perfect the infrastructure system, and deepen opening-up and cooperation.

The specific targets include bringing the average power consumption of new, purely electric passenger cars down to 12 kWh/100 km and raising the proportion of new NEVs in the sales of new vehicles to 20 percent by 2025.

By 2035, purely electric automobiles are likely to become the mainstream in the sales of new ones, while those used in public transportation will be exclusively electrified, according to the plan.

Boasting the world's most sizable inventory of NEVs, China accounts for 55 percent of global NEV sales.

Stocks rose on Monday in response to strong October deliveries reported by China's major electric vehicle makers Xpeng, NIO and Li Auto.

NIO delivered 5,055 vehicles in October, up 100.1 percent year on year, outperforming its two rivals.

Li Auto said that it delivered 3,692 of its Li ONE SUVs last month, up from 3,504 in September, while Xpeng delivered 3,040 vehicles in October, skyrocketing 229 percent from a year ago.

Following the strong sales reports and NEV development plan released by the government, the shares of all three companies traded up on Monday, by 10.9 percent, 10.3 percent and 13.2 percent, respectively.