The dual advantages of technological innovation and market mechanisms
In recent years, China’s new energy vehicle industry has rapidly grown, driven by both technological innovation and market mechanisms. With the deepening of the electrification transition, new energy vehicle technology continues to evolve, costs are gradually optimized, and the consumer car-buying experience is increasingly improved. For example, Zhang Chaoyang, a resident of Shenyang, Liaoning Province, purchased a domestically produced new energy vehicle. He not only enjoyed the pleasure of personalized customization but also saved over 20,000 yuan through the trade-in program. The implementation of this series of policies demonstrates the country’s commitment to and support for the development of the new energy vehicle industry.
Fu Bingfeng, Executive Vice President and Secretary-General of the China Association of Automobile Manufacturers, stated that rapid technological iteration and cost optimization have promoted the large-scale development and market penetration of new energy vehicles. With the continuous advancement of intelligent connected technology, new energy vehicles are becoming increasingly versatile. Car owner Cao Nannan shared her car-buying experience: “Before I set off in the morning, I can remotely control the car using my phone, opening the windows for ventilation or turning on the air conditioner for cooling. I can also start the car remotely. The remaining battery, interior temperature, tire pressure, and other information are displayed in real time on the mobile app, making it easy to see at a glance.” This technological experience not only enhances user convenience but also lays the foundation for the widespread adoption of new energy vehicles.
At the policy level, national support continues to increase. Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers, noted that the July trade-in policy has been effective, with positive progress made in the industry’s comprehensive efforts to address internal competition. Companies continue to release new models, supporting the stable operation of the auto market and achieving year-on-year growth. The national government has issued the third batch of ultra-long-term special government bonds to support the trade-in of consumer goods, with the fourth batch scheduled for October. This will effectively unleash domestic demand potential, stabilize consumer confidence, and continuously boost auto consumption.
Meanwhile, the construction of charging infrastructure has also made positive progress. Data shows that by the end of June this year, the total number of electric vehicle charging facilities in my country had reached 16.1 million, including 4.096 million public charging facilities and 12.004 million private charging facilities, with charging facility coverage reaching 97.08% of counties. Li Chunlin, Deputy Director of the National Development and Reform Commission, stated that during the 14th Five-Year Plan period, the number of charging piles on my country’s highways more than quadrupled in four years, covering 98.4% of highway service areas, significantly reducing the “range anxiety” faced by new energy vehicle drivers.
Export Growth: New Opportunities in Southeast Asian Markets
China’s new energy vehicle competitiveness is evident not only in the domestic market but also in exports. According to statistics, in the first half of this year, China exported 1.308 million new energy vehicles, an 84.6% year-on-year increase. Of these, 1.254 million were new energy passenger vehicles, an 81.6% year-on-year increase, and 54,000 were new energy commercial vehicles, a 200% year-on-year increase. Southeast Asia has become a key target market for China’s new energy vehicles, and an increasing number of Chinese new energy vehicle companies are actively developing and promoting “localized production” to quickly respond to the differentiated needs of the regional market.
At the recently held 2025 Indonesia International Motor Show, the Chinese automaker exhibition attracted a large number of visitors. Over a dozen Chinese auto brands showcased technologies and applications such as connected car and driver assistance systems, primarily pure electric and hybrid models. Data shows that in the first half of this year, wholesale sales of pure electric vehicles in Indonesia increased by 267% year-on-year, with Chinese auto brands accounting for over 90% of these sales.
Xu Haidong, Executive Deputy Secretary-General of the China Association of Automobile Manufacturers, stated that Southeast Asia, with its advantages in policies, markets, supply chains, and geography, is attracting Chinese new energy vehicle companies to build factories, source, and sell locally. Great Wall Motors’ KD plant in Malaysia has successfully assembled its first product, and Geely’s EX5 electric vehicle has completed trial production in Indonesia. These initiatives have not only enhanced the influence of Chinese brands in the international market but also injected new vitality into local economic development.
As Southeast Asia’s economies develop, market potential will be further unleashed, creating new opportunities for Chinese companies. Xu Haidong believes that as the automotive industry embarks on an era of electrification and intelligent transformation, China’s new energy vehicles possess first-mover advantages in scale, systematization, and rapid iteration. The arrival of a well-established industrial ecosystem in Southeast Asia will help the local automotive industry adopt new technologies like smart cockpits and automated parking with greater cost-effectiveness, thereby enhancing the industry’s modernization and international competitiveness.
Focusing on both quality and innovation to build a sustainable development ecosystem
Amid the rapid development of the new energy vehicle industry, quality and innovation have become crucial for the survival and growth of companies. Recently, the automotive industry has been vigorously combating involutionary competition, characterized primarily by disorderly price wars, which has sparked public concern. On July 18th, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the State Administration for Market Regulation jointly convened a symposium on the new energy vehicle industry to outline measures to further regulate competition in the sector. The meeting proposed further efforts to monitor product prices, conduct product consistency inspections, shorten supplier payment terms, and carry out special rectification campaigns on online irregularities, as well as random product quality inspections and defect investigations.
Zhao Lijin, Deputy Secretary-General of the Society of Automotive Engineers of China, stated that my country’s automotive industry is moving from “scale development” to “value creation,” and from “following development” to “leading innovation.” Faced with market competition, companies must further enhance the supply of high-quality technology and strengthen research into fundamental, original technologies. The upstream and downstream sectors of the industry chain must further strengthen innovation in cutting-edge fields such as chips and artificial intelligence, continuously advance iterative upgrades in technologies like power batteries and fuel cells, and enable cross-system integration of intelligent chassis, intelligent driving, and intelligent cockpits, focusing on fundamentally addressing bottlenecks hindering the industry’s high-quality development.
Zhang Jinhua, Chairman of the China Society of Automotive Engineers, emphasized that technological progress should be used as the core driving force for cultivating competitive advantages, and that electrification and intelligent technology innovation should be promoted persistently, focusing on energy power, intelligent chassis, intelligent networking and other aspects. The forward-looking and leading layout in basic frontier fields and cross-integration fields should be strengthened, and key technologies for the entire chain of all-solid-state batteries, distributed electric drive systems, and large-scale autonomous driving models should be overcome. Breakthroughs in bottlenecks such as vehicle operating systems and special tool software should be made to comprehensively improve the technical level of new energy vehicles.
In short, China’s new energy vehicle industry demonstrates strong vitality and potential in technological innovation, market mechanism improvement, and international market expansion. With continued policy support and the dedicated efforts of Chinese companies, China’s new energy vehicles will continue to lead the global trend of green travel and become a key force in promoting sustainable development.
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Post time: Aug-25-2025