The new regulation introduces legally binding thresholds based on curb weight, with models weighing around two tonnes capped at 15.1 kWh per 100 km. This rule, titled GB 36980.1-2025, replaces the previous non-compulsory framework and signals a turning point in China’s strategy to reshape its EV industry through stricter energy standards.
The measure applies specifically to pure-electric passenger vehicles and excludes plug-in hybrid and extended-range models. While many vehicles already meet the standard, those that don’t may be forced to undergo technical updates or be withdrawn from production. The rule will also determine access to government incentives, linking regulatory compliance with eligibility for tax exemptions through 2026 and 2027.
Chinese authorities argue that better energy efficiency, achievable without increasing battery size, could extend driving range by up to 7%. But beyond performance gains, the regulation embeds energy consumption into China’s industrial policy, putting pressure on both domestic and foreign carmakers to adapt.
A Fixed Energy Ceiling Tied To Vehicle Weight
According to China Central Television, as cited by IT Home., the upcoming standard, Energy Consumption Limits for Electric Vehicles Part 1 Passenger Cars, will set consumption limits that vary depending on the vehicle’s curb weight and technical features. For two-tonne vehicles, the cap will be fixed at 15.1 kWh per 100 km, measured using China’s CLTC (China Light-duty Vehicle Test Cycle) procedure.
This new standard reflects a major regulatory shift from the earlier GB/T 36980-2018 version, which was merely recommended. The updated version tightens energy consumption allowances by approximately 11%, and introduces new differentiated metrics that consider vehicle function, driving scenarios, and specific technical solutions. These updates aim to accommodate a broader variety of vehicle types while encouraging manufacturers to pursue efficiency through technology, rather than simply adding battery capacity.
The CLTC cycle is less demanding than Europe’s WLTP standard and closer to the outdated NEDC, but the 15.1 kWh figure is still regarded by Chinese officials as realistic given current EV technology.
Impact On Manufacturers And Product Lines
Under the new regulation, any newly produced EV models must meet the mandatory efficiency thresholds to gain approval for sale in the Chinese market. As a result, automakers will be required to perform technical upgrades to ensure compliance. This may include motor mapping adjustments, software changes, or even full withdrawal of models that fail to meet the limits.
Despite the regulatory tightening, the impact on the majority of the Chinese EV market is expected to be limited. Chinese media outlet 36KR found in May 2025 that most of the country’s best-selling electric models already comply with the upcoming thresholds. Brands like BYD and Geely, which dominate the domestic market, have already integrated more efficient technologies in their latest models, minimizing disruption under the new rules.
The updated regulation also acknowledges the increasing weight and size of modern vehicles. The Ministry of Industry and Information Technology has revised the weight classification categories, aligning them more closely with the current vehicle landscape. Yet, some believe the government should have acted earlier to rein in the growing trend of heavier models among national manufacturers.
A New Link Between Consumption And Fiscal Benefits
A central consequence of the new standard is its integration into China’s fiscal policy for electric vehicles. The Ministry of Industry and Information Technology, Ministry of Finance, and State Taxation Administration have issued revised requirements for purchase tax exemptions. To remain eligible for these incentives, electric vehicles must now comply with the 2026 standard.
Vehicles already listed in the tax exemption catalog by the end of 2025 will be transferred into the 2026 catalog only if they meet the new energy limits. Non-compliant models will be removed. The rule also introduces tougher technical thresholds for plug-in hybrids and extended-range vehicles, such as higher minimum electric driving ranges.
Authorities expect that energy savings from the new standard will come primarily from system-level improvements, better motor efficiency, optimized electronics, and aerodynamic design, rather than expanded battery capacity. Regulators believe such changes can offer a 7% increase in range, helping to improve overall vehicle performance without affecting size or cost.
Although the new energy standard only applies within China, it has drawn attention globally. No other major market currently enforces a hard ceiling on EV electricity consumption. While European and U.S. standards like WLTP or EPA serve primarily for performance comparison, China’s approach makes consumption limits a regulatory barrier to market access.
