Visitors check out Audi electric cars at the China Changchun International Automobile Expo held in Jilin province in July. (PHOTO / XINHUA)

BEIJING - China's new energy vehicle (NEV) market will see robust growth in the next five years driven by government policies and other factors, according to an industrial report.

The total sales of NEVs in the country will reach 1.16 million this year and further expand to around 5.42 million in 2025, according to the global market research firm International Data Corporation (IDC).

The total sales of NEVs in the country will reach 1.16 million this year and further expand to around 5.42 million in 2025

China's NEV market is expected to grow at a compound annual growth rate of 36.1 percent between 2020 and 2025, said the report.

The share of pure electric vehicles in the NEV market will soar to 90.9 percent in 2025, up from 80.3 percent this year, IDC data showed.

The IDC attributed the surging expansion of China's NEV market to government promotion, transformation and investment from vehicle manufacturers, advancements in battery technology, autonomous vehicle development and more open-minded consumers. 

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Meanwhile, China is seeing a surge in the number of newly established companies related to NEVs, according to data from database query platform Tianyancha.com.

In the first 11 months, the country saw more than 55,000 newly established NEV-related companies, exceeding the figure for 2019, the data showed.

So far, China has more than 180,000 companies operating businesses covering NEVs.

In breakdown, about 52 percent of the NEV-related firms were in the wholesale and retail sectors, 16 percent of them in the research and technical service sectors, and 10 percent in the leasing and business service sectors.

The data also showed that south China's Guangdong Province has nearly 24,000 NEV-related firms, the highest in the country, followed by Jiangsu and Shandong, where such firms have both exceeded 17,000 in number.

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