In 2023, China’s New Energy Vehicle (NEV) market experienced rapid growth, becoming a significant highlight in the Chinese automotive industry. According to the China Association of Automobile Manufacturers, the market is expected to maintain a positive growth trend in 2024, with an estimated increase of over 3% and NEV sales reaching 11.5 million units.

During the recent China EV100 Forum (2024), Zhang Yongwei, Vice President and Secretary General of the China EV100, shared new trends in the development of the NEV industry for 2024. This summary presents key insights from the forum, compiled by China Industry News Auto Weekly for our readers.

1. Enhanced National and Global Standing of China’s NEV Industry in 2024

2024 is projected to be a crucial year for the Chinese NEV industry’s global stature and its reinforced role in national economic and social development. China is leading the world in applying new automotive technologies and launching new models. The market is expected to define the next generation of vehicles, with China becoming a central source of innovation. By 2025, China is anticipated to maintain over 50% of global NEV sales, consolidating its leadership in technology and regulations.

2. Intense Industry Restructuring and Competition

The NEV industry is undergoing significant restructuring, with 2024 marking a period of intense competition and differentiation. Globally, the focus of smart vehicle competition will be between China and the United States. Domestically, regions leveraging NEV development will emerge as new industrial hubs, while areas lagging in NEV adoption will face increased transition pressures.

3. Increasingly Competitive Business Environment

The NEV industry in 2024 and 2025 is expected to become more competitive, driven by diversified and individualized consumer demands. Companies will need to shorten product lifecycles and meet new market needs, emphasizing innovation and adaptability.

4. Structural Optimization of the Industry

The industry is shifting from investment-driven growth to optimizing existing structures. This includes increasing electrification capacity and restructuring fragmented production capacities for better scale efficiency. The focus will be on mergers and consolidations to achieve greater economic benefits.

5. Continued High Growth in the NEV Market

China’s NEV sales in 2023 approached 10 million units. With a projected growth rate of 30%-40%, the focus will be on vehicles priced between 100,000 and 150,000 yuan, transitioning from fuel to electric power. Hybrid technologies and diverse powertrain options will further balance the market.

6. Internationalization of NEVs

The international sales of Chinese NEVs are expected to grow, driven by overseas production and local sales. This shift towards localized manufacturing will follow a pattern similar to foreign automakers in China, enhancing international competitiveness.

7. Accelerated Electrification and Smart Transition of Commercial Vehicles

China, being a major player in commercial vehicles, will focus on the electrification and smartification of this sector. As passenger vehicles stabilize, the emphasis will shift to green and smart commercial vehicles, integrating both electric and intelligent technologies.

8. Technological Breakthroughs in Batteries, Chips, and Operating Systems

Significant technological innovations are anticipated in 2024, including new battery technologies, high-voltage charging, and domestically produced chips. These advancements will accelerate the adoption of advanced features in NEVs.

9. Clearer Path for Smart Driving Applications

2024 will see clearer development paths for smart driving, with rapid advancements in single-vehicle intelligence and integrated smart modules. The industry will move towards higher levels of autonomous driving, with new vehicles incorporating more intelligent features.

10. Accelerated Integration with ICT and Energy Industries

The automotive industry’s integration with Information and Communications Technology (ICT) and energy sectors will deepen in 2024. This cross-industry collaboration will drive innovation, transforming vehicles into sophisticated energy and ICT devices.

(Source: China Industry News)