(Bloomberg) -- Automakers in China may recover faster than expected this year amid measures by the government to stabilize vehicle demand, according to a major industry group.

Vehicle sales in the world’s largest car market could rise 6.5% this year from 2020, larger than the 4% increase projected in January, said Xu Haidong, deputy chief engineer at the China Association of Automobile Manufacturers. A formal revision on the 2021 vehicle sales target will be published in July, Xu said in Shanghai on Saturday.

The Chinese government has said it will work to encourage “steady increases” in spending on cars this year, a signal Beijing wants to ensure the autos sector has a robust future. Overall vehicle sales are expected to rise this year for the first time since 2017, CAAM said earlier.

New energy vehicle sales could surge 46% to more than 2 million units this year, Xu estimated, adding shares of EVs may reach 20% to 25% of total car sales by 2025. Premier Li Keqiang told the National People’s Congress in March that more car parks, EV charging stations and battery-swapping facilities will also be built, and battery recycling systems developed at a faster pace.

Passenger vehicle sales may gain 10% this year, Xu said.

©2021 Bloomberg L.P.