Hong Kong (CNN Business) China wants to boost its adoption of electric vehicles. So far, that hasn't been easy.

Data released this week suggests that the Chinese market for new energy vehicles could shrink this year, according to an industry group. The China Association of Automobile Manufacturers said Monday that the sales of electric, hybrid and fuel cell cars plunged by over 45% in October, marking four straight months of declines in the sector.

"Because of the insufficient demand of the domestic market, the pressure for automakers to upgrade their technology to the national standard, and the major subsidy cuts for new energy vehicles, the recovery of production and sales is still limited," said Chen Shihua, assistant secretary general of the group.

"Based on the current developing trend, we may see negative growth for new energy vehicles this year."

The findings underscore the delicate spot that Beijing is in. China wants new energy vehicles to make up a fifth of its auto sales by 2025, and the government has outlined a goal of reaching 7 million in annual sales for those vehicles by that year. To that end, it has implemented a range of government subsidies and tax incentives for the production and purchase of electric cars, which has helped the industry grow.