The target was set by the State Council, the country's cabinet. It also set a target of having a majority of all new vehicles sold by 2035 being fully electric.
"With the new plan, the competitiveness of the country's NEV [[new energy vehicle] industry is expected to be greatly enhanced by 2025, with significant breakthroughs in key technologies such as power batteries, drive motors and vehicle operating systems," Xin Guobin, vice-minister of industry and information technology, told a media conference on Tuesday.
"The plan also gives full play to the role of the market and allows carmakers greater autonomy in determining technology and product development, and also gives more consideration to safety," he said.
Cui Dongshu, secretary-general of the China Passenger Car Association, said: "It is a more stable and scientific goal, following the global slowdown of the automotive industry last year, which put more focus on high-quality development rather than scale development.
"The plan is also of significance to encouraging the development of high-end new energy vehicles, as it no longer uses simple indicators to restrict the overall industry, but gives greater autonomy to carmakers to develop."
Meng Xiangfeng, an assistant to the chairman of new energy battery provider Contemporary Amperex Technology, said the guideline came as global NEV development was set to become more mature over the next 5 to 15 years.
"At this critical period, the new plan proposes a broader and more detailed vision. It will play an important leading role in the development of China's NEV sector and contribute to the overall development globally," he said.