China will introduce a mandatory standard on January 1, 2026, limiting the energy consumption of new electric cars. The government intends to enforce efficiency through both technical and fiscal means. Manufacturers must design their models according to weight and technology to ensure demonstrable energy efficiency and allow buyers to continue benefiting from tax exemptions. These limits increase development pressure, as powertrains, software, and battery technology must become measurably more efficient to reliably meet the requirements in the test cycle. (globalchinaev: 27.12.25)
Electricity Consumption Becomes a Criterion for Tax Exemption
The regulations apply immediately to newly produced models and replace previous recommendations with legally binding limits. China has tiered the upper limits according to curb weight and vehicle concept, meaning efficiency can no longer be masked by optional extras. For the market, this means that a model that fails to meet the electricity consumption limits will not only lose its chances of being registered but also its financial appeal.
Chinese media report a tightening of regulations by around 11 percent, while new metrics take different usage scenarios into account. This puts the overall system’s efficiency more firmly in focus, because it’s not a single component that determines performance, but rather the interplay between the drive system, software, and thermal management.
Weight-based limits: CLTC shifts the logic of comparison
For electric passenger cars with a curb weight of around two tons, the maximum permissible value is 15.1 kWh per 100 kilometers in the CLTC cycle. CLTC usually delivers lower values than WLTP, but there is no fixed conversion. As a rough guide, the level in WLTP terms should correspond to approximately 18 to 19 kWh per 100 kilometers, although the upper limits vary considerably depending on weight.
Lighter vehicles must meet stricter limits, which is why manufacturers are reducing energy consumption through aerodynamics, rolling resistance, and control strategies. Battery technology is gaining importance here, because cell chemistry, pack layout, and thermal management measurably influence real-world consumption.
Many new models already meet the limits
Current market data indicates that numerous new vehicles already meet the requirements, even though the standards are becoming more stringent. A Tesla Model Y, with a curb weight of just over 1.8 tons, is rated at 11.2 to 13.4 kWh per 100 kilometers according to CLTC, depending on the variant. A Xiaomi SU7, weighing around 1,980 kilograms, achieves 12.3 kWh per 100 kilometers, and a Luxeed R7, weighing approximately 2,180 kilograms, reaches 13.2 kWh per 100 kilometers.
These figures demonstrate that high energy efficiency is technically achievable if the platform and software are consistently optimized for low losses. At the same time, the gap between data sheet figures and real-world driving remains significant, which is why manufacturers must optimize their systems for stable performance across temperature ranges and driving profiles.
Tax Exemption as Leverage for the Mass Market
China is linking compliance with emissions limits with tax breaks to ensure efficiency targets influence purchasing decisions. Pure electric vehicles must meet the limits to remain eligible for tax exemption, and this mechanism is accelerating the transition in the mass market. This is particularly important for manufacturers with tight margins, as the lack of tax exemption significantly increases the final price.
The regulatory pressure also extends along the supply chain, because the required efficiency can only be achieved with seamless system integration. Improvements in power electronics, recuperation logic, and thermal management directly contribute to reduced energy consumption, while additional vehicle mass further tightens the target values.
Older Models Must Catch Up Technically
Older model series require action if they exceed the limits. Manufacturers must then adapt the powertrain, software, or structure to bring consumption figures back within the permitted range. If this is not successful, the model risks being discontinued because it will no longer be competitive under the new regulations.
This makes efficiency a tough selection criterion: those who meet the limits secure sales and eligibility for subsidies, while laggards have to reprioritize development budgets and product cycles. In practice, the quality of the battery technology often decides the outcome, as it combines range, charging window, and everyday losses.