It is commonplace in China, as in many parts of the world, that people check the energy label before they buy an appliance, be it a refrigerator or an air conditioner. Now they can do the same with cars.

China released its first-ever energy efficiency ratings for pure electric passenger vehicles last week, marking a major step forward in the country's strategy to enhance the environmental performance of its booming new energy vehicle sector.

The first round of assessments covers 12 electric vehicle models from popular brands in the Chinese market, including Wuling, Volkswagen, Toyota and XPeng.

The assessments are based on four criteria: total vehicle energy efficiency, powertrain performance, air-conditioning system efficiency, and charging performance.

Of them, 11 vehicles — eight from domestic automakers and three from joint ventures — met the standards for "Level 1 Efficiency", the highest classification under the new system. One was rated at Level 2.

The ratings were issued by the China Alliance for Automotive Energy Efficiency Development and Certification, a national body co-founded by the China Automotive Engineering Research Institute and the China Quality Certification Center.

The move is designed to help consumers make informed choices, support manufacturers in improving real-world efficiency, and advance China's ambition to play a leading role in the green transformation of the global auto industry, said the alliance.

"For consumers, the energy label is like a power-saving report card," said Liu Jiang, general manager of the China Quality Certification Center.

"A Level 1 EV has a per-kilometer energy cost that's just one-tenth that of a traditional petrol car. If you buy by the grade, you're buying both savings and sustainability," said Liu.

The alliance also aims to accelerate industry innovation through a standardized, science-based framework for energy performance, carbon assessment, and technical certification.

"This energy grading system is not just about labels, it's a strategic tool to guide green innovation across the auto industry," said Liu Anmin, general manager of the China Automotive Engineering Research Institute.

"Enhancing vehicle energy efficiency is essential for breaking through the limits of resource and environmental constraints, and for accelerating the transition to a more sustainable economic model," he said.

According to expert projections, if 60 million Level-1 electric vehicles were to operate in China over a 10-year period, they would collectively save 286.65 terawatt-hours of electricity. This is roughly equal to the annual electricity consumption of 79.6 million households.

This shift would reduce coal usage by 85.99 million metric tons and cut carbon dioxide emissions by 153.82 million tons, delivering an environmental benefit equivalent to the carbon absorption of 5.7 times the forest area of China's famous Changbai Mountain.

For automakers, the new standards serve as a catalyst for technological progress. By focusing on real-world efficiency, rather than just advertised specifications, the grading system encourages manufacturers to optimize battery energy conversion, upgrade thermal management systems, and shift from marketing claims to performance-driven design.

The alliance said it has begun research into applying similar grading standards to hybrid vehicles and commercial vehicles. It added that the goal is to eventually establish a comprehensive, full-spectrum evaluation system that covers the entire NEV industry chain.