Hainan eyes eco-friendly vehicle future
By 2030, 100 percent of new and replacement cars must be NEV
In March 2019, Hainan released its Clean Energy Vehicle Development Plan, becoming the first province to give a specific timeline — 2030 for a province-wide ban. In August 2022, the provincial carbon peaking implementation plan further refined the targets, mandating 100 percent clean energy for new public vehicles by 2025 and 100 percent for new private vehicles by 2030.
The latest plan, issued in July 2026, is the third key document in this progression. It breaks down specific targets and tasks, including the vehicle-to-charger ratio requirement and the orderly promotion of fuel-cell vehicle demonstrations in heavy trucks, cold-chain logistics and public transport.
The policy has been accompanied by growing public acceptance of NEVs, both nationally and locally. Ministry of Commerce data show that China's NEV passenger vehicle market penetration rose from 5.7 percent in 2020 to 53.9 percent in 2025 — more than half of all new cars sold.
In Hainan, the figures are even more striking. According to provincial industry authorities, Hainan promoted 116,800 new NEVs in 2025, accounting for 62.9 percent of all new vehicles. That means six out of every 10 new cars purchased in Hainan last year were new energy vehicles.
In April 2026 alone, the NEV penetration rate hit a record 74.5 percent.
Total NEV ownership in Hainan reached 517,000 units by the end of November 2025, representing 23.04 percent of the province's total vehicle fleet.
The strong consumer preference is driven by fiscal policies and infrastructure. Hainan does not collect separate highway tolls; instead, road maintenance costs are incorporated into fuel prices, making gasoline consistently over 1 yuan ($0.15) per liter more expensive than on the mainland.
Zhang Xiang, a guest professor at Hainan Vocational University of Science and Technology and an auto industry analyst, said that this pricing structure, combined with comprehensive charging networks and short driving distances, gives NEVs a compelling cost advantage over gasoline vehicles.
But Li from the Chinese Academy of Macroeconomic Research cautioned that Hainan's model may not be directly replicable in other provinces. In inland regions, vehicles frequently cross provincial borders, and a blanket ban on fuel-vehicle sales could trigger cross-regional purchases, raising management costs and undermining the ban's effectiveness.
Moreover, regions such as Northeast China, the Yangtze River Delta and Central China still have relatively complete fossil-fuel vehicle supply chains; a sudden ban could disrupt industrial stability and employment. Cold winters in northern areas also pose greater challenges for battery performance.
Therefore, Li stressed that other regions should formulate differentiated policies based on local conditions and avoid a one-size-fits-all approach.
Shi Jianhua, vice-chairman of China EV100, a Beijing-based auto industry think tank, emphasized the effect of Hainan's pilot. "Hainan's relatively enclosed geography makes it easier to take the lead," he said. Beyond ecological protection, a successful implementation could yield a "China solution" for NEV promotion, generating valuable experience in policy design, infrastructure development, consumer guidance and industrial transformation.
The plan sets a target to raise NEV ownership from 23.75 percent in 2025 to 45 percent by 2030 — nearly doubling the current share. This will require continued infrastructure expansion and refinement.
Shi said that the key is to make charging as convenient as refueling. He suggested improving public NEV rental systems and further optimizing the vehicle usage environment to accelerate adoption and gradually reduce the intensity of fossil-fuel vehicle use. He also reassured the public that "a ban is not a driving ban" — existing fuel vehicles will continue to be used normally over a period of natural turnover.
The green mobility revolution that began in Hainan is not an isolated adjustment, but the prelude to a nationwide transformation of the automotive industry and mass travel patterns, experts added.
Contact the writers at masi@chinadaily.com.cn
