China wants to build its own electric K-car industry to boost EV sales

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- Cui Dongshu – secretary‑general of the China Passenger Car Association, proposed a standardized budget EV category modeled on Japan’s K‑car ecosystem to revive domestic sales and replace unsafe “laotoule” micro‑cars.
- China – retail new‑energy vehicle (NEV) sales in April 2024 were about 860,000 units, a modest rise from March but still below the 905,000 units sold a year earlier.
- Ministry of Industry and Information Technology – reported 830,000 traffic accidents involving low‑speed electric micro‑cars between 2012‑2016, causing roughly 18,000 deaths, prompting a 2024 ban on such vehicles.
- Japan’s K‑car market – accounted for roughly 33% of all passenger car sales in the first half of 2025 and moved 1.67 million units for the full year, illustrating a mature low‑cost vehicle ecosystem.
- Cui Dongshu – also suggested creating a dedicated C7 driver’s license with a simplified testing process to lower barriers for elderly and first‑time drivers in rural areas.
Why it matters: Chinese manufacturers win a regulated low‑cost EV niche, elderly rural drivers get safer cars, and the ban on laotoule cuts the 830k accidents that caused ~18k deaths, boosting overall road safety.
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