Automotive Industry Achieves Leapfrog Development

Manufacturing is the foundation of a nation's establishment and the basis of its strength. As the end of the "14th Five-Year Plan" approaches and the "15th Five-Year Plan" is about to begin, we are launching the "Follow the President to See Chinese Manufacturing" integrated media series report. This involves dialogues with leaders from five key manufacturing industry associations, including the automotive sector, to observe development changes and explore future directions through a professional lens. The series will interpret industry transformation paths and address public concerns.

During the "14th Five-Year Plan" period, what development achievements has China's automobile industry accomplished? What opportunities and challenges does it face in "going global"? Looking ahead to the "15th Five-Year Plan," what new directions are there for the development of the automobile industry? Fu Bingfeng, Executive Vice President and Secretary-General of the China Association of Automobile Manufacturers, was interviewed by a reporter from the Economic Daily.

Formation of industry-leading advantage

Reporter: Since the 14th Five-Year Plan, the automotive industry has embarked on an upward growth trajectory. Could you please introduce the main achievements of the Chinese automotive industry over the past five years?

The Party Central Committee and the State Council attach great importance to the development of the new energy vehicle industry, conducting top-level planning from the national strategic level and issuing the "New Energy Vehicle Industry Development Plan (2021-2035)," which clarifies the direction and goals for the industry. Government departments at all levels are fully implementing the decisions and deployments of the Party Central Committee and the State Council, actively taking action and introducing a series of industrial policies and tools that promote technological progress, focus on expanding domestic consumption, optimize the market development environment, and maintain supply chain security and stability. These efforts provide policy assurance for the effective qualitative improvement and reasonable quantitative growth of China's automotive industry.

The automotive market demonstrates strong resilience and vitality. During the 14th Five-Year Plan period, China's automotive industry has overcome various challenges, maintaining the position of the world's largest producer and seller for 16 consecutive years. In 2024, automobile production and sales are expected to reach 31.282 million and 31.436 million units, respectively, representing year-on-year growth of 3.7% and 4.5%.

The transformation and upgrading of new energy and intelligent connected vehicles have yielded remarkable results. New energy vehicles have become the dominant force in China's automotive market. In 2024, the production and sales of new energy vehicles reached 12.888 million and 12.866 million units, respectively, representing year-on-year growth of 34.4% and 35.5%. The market penetration rate reached 40.9%, a threefold increase compared to the end of the "13th Five-Year Plan" period.

In 2024, Chinese brand passenger car sales reached 17.97 million units, a year-on-year increase of 23.1%. The market share of new Chinese brand passenger cars was as high as 65.2%, an increase of nearly 27 percentage points compared to the end of the "13th Five-Year Plan" period.

Technological innovation is driving continuous improvement in the modernization level of industrial chains. Significant breakthroughs have been made in areas such as power batteries, drive motors, and electronic control systems for new energy vehicles, with advanced intelligent driving assistance technologies continuously making new progress. China has established the world's most comprehensive and resilient industrial chain and supply chain system for new energy vehicles.

Globalization has reached a new level of development. In 2024, China's automobile exports reached 5.859 million units, a year-on-year increase of 19.3%. The Chinese approach also provides effective reference for the global automobile industry's green transition and development.

Overall, during the "14th Five-Year Plan" period, China has transformed its initial advantage in the new energy vehicle sector into an industry-leading advantage, driving the automotive industry to achieve leapfrog development.

The pace of industrial innovation is accelerating.

Journalist: From "catching up" to "running alongside," and then to "leading," China's new energy vehicle industry has continuously made breakthroughs in core technology areas. Has China's automobile industry achieved the goal of "cornering overtaking"?

Fu Bingfeng: During the "14th Five-Year Plan" period, the pace of innovation in China's automobile industry has accelerated, with rapid development of new energy vehicles. Electrification and intelligence have effectively integrated and complemented each other, consolidating and expanding China's leading advantage in the smart connected new energy vehicle industry.

China boasts the world's largest consumer market for new energy vehicles (NEVs) and a consumer base that is keen on pursuing technology and willing to experiment, providing vast development opportunities for NEVs. Additionally, the export volume of Chinese NEVs is increasing year by year. In terms of breakthroughs in core technologies, continuous progress has been made in key areas such as vehicle platform technology, battery technology, motor technology, and electronic control technology, significantly enhancing the core competitiveness of NEV products.

During the "14th Five-Year Plan" period, the annual production and sales of new energy vehicles have exceeded 10 million, with their share of vehicle ownership surpassing 10%. The sales of new energy vehicles account for over 45% of the total new car sales. The rapid scale development and market penetration of new energy vehicles have become the dominant force in the automotive market. This also marks that the electrification transformation and upgrade of China's automotive industry have risen to a level of steady development, successfully completing the first phase of industrial and market structure adjustment, achieving a historic leap from the dominance of traditional fuel vehicles to the leadership of new energy vehicles.

Developing new energy vehicles is the necessary path for China to transform from a major automobile country to a powerful automobile country, and it is also a strategic measure to address climate change and promote green development. Looking ahead to the "15th Five-Year Plan," the strategic guidance and industrial policy support at the national level, continuous technological innovation, diversified product routes, and increasingly improved infrastructure will jointly drive the transformation and upgrading of the industry. The penetration rate of new energy vehicles is expected to continue to rise, reaching approximately 65% by 2030.

Enhance international competitiveness and influence.

Reporter: How is the performance of Chinese automobiles in global development? What opportunities and challenges does "going out" face?

Fu Bingfeng: The globalization of China's automotive industry is developing well, and Chinese cars have become an important choice for global consumers. Specifically, China's automobile exports have risen to the number one position in the world, covering more than 200 countries and regions, with a diverse range of export types. High technology and high quality have become the hallmark of Chinese brands, with Chinese automakers ranking among the top in global sales. Companies like BYD and Geely are among the top ten global automakers by sales, and 15 Chinese component companies are expected to be listed in the 2025 Global Automotive Parts Suppliers Top 100 list. China's automotive industry has deeply integrated into the global market, achieving global coordination in technology, capacity, and services through various models such as setting up overseas R&D centers, investing in building factories, and engaging in joint ventures and cooperation. The pace of globalization is becoming increasingly solid.

In the next five years, China's automotive industry will encounter multiple opportunities for "going global." Under the global shift towards low-carbon, new energy vehicles have become the direction of transformation, with China holding a 70% share of the global electric vehicle market, solidifying its first-mover advantage. The revolution in intelligentization is breaking the traditional development model of the automotive industry, opening new tracks and spaces for Chinese automobiles. The restructuring of industrial structures in developed markets and the release of rigid demand in emerging markets provide entry points and incremental spaces for Chinese automobiles. The joint construction of the "Belt and Road" initiative builds a convenient logistics and cooperation platform for automobile exports, aiding the industry's overseas expansion.

At the same time, China's automotive globalization also faces some challenges. For example, tariff barriers weaken price advantages, new technology barriers become obstacles, and some countries overgeneralize the concepts of "industrial security" and "national security," disrupting the layout of the industrial chain and increasing operational costs.

Overall, China's automotive industry has, and opportunities far outweigh challenges, making it a rare period of globalization.

Reporter: Could you provide an outlook on the development direction and prospects of China's automotive industry during the 15th Five-Year Plan period?

Fu Bingfeng: The next five years will be a critical period for the automotive industry to transition from scale expansion to high-quality development, and it will also be a strategic opportunity to seize the high ground in the global automotive industry. The future development trends are specifically reflected in:

The deep integration of electrification and intelligent technologies. The new generation of electronic and electrical architecture and centralized computing platforms provide the hardware foundation for software-defined vehicles, enabling vehicles to become continuously evolving intelligent terminal products. Intelligent connected vehicles are becoming an important direction for the future development of automobiles.

Green low-carbon development is an important direction for industrial development. Relevant documents clearly state that new energy vehicles, as key products, should establish a carbon emission statistical accounting system, a product carbon labeling certification system, and a product carbon footprint management system during the mid-term of the 14th Five-Year Plan. This will encourage automotive companies to implement green low-carbon management throughout the entire lifecycle of their products, from raw material procurement and manufacturing to product usage and recycling, promoting the green transformation of the industry.

Globalization has become an important path for developing into a strong automobile nation. As China's new energy vehicle products continue to improve in technology and quality, more and more Chinese car companies are accelerating their expansion overseas. Driven by policy guidance and market forces, the industry is upgrading from single product export to systematic international expansion in terms of brand, standards, and services, comprehensively enhancing its market share and influence in the global market.

The integration and mutual empowerment of industries across boundaries. The automotive industry will deeply integrate with new generation information technology, smart cities, artificial intelligence, and more, elevating the development of the industrial chain and supply chain to a new level. Cross-industry integration not only brings new growth points to the automotive industry but also promotes the collaborative development of related industries, collectively building a more intelligent, efficient, and green industrial ecosystem, further enhancing the global competitiveness and influence of China's automotive industry.