On Thursday, an event marking the 10 millionth new energy vehicle produced in China for the year 2024 was held in Wuhan, Central China’s Hubei province. It also marked the first time that China’s annual production of new energy vehicles has exceeded 10 million units.
The continuous surge in new energy vehicle production is a result of the fast-growing domestic automotive industry, underpinned by a systemic upgrading of infrastructure and the supply chain network, and research into consumer behavior.
For instance, China has built the world’s largest charging infrastructure network, with over 10 million charging facilities. It has also established a complete and competitive new energy vehicle industry chain, successfully connecting key links such as raw materials, components, systems integration, and manufacturing equipment.
Simultaneously, the industry and value chains of new energy vehicles are continuously expanding into the transportation, energy, information and communication sectors, driving the research and industrialization of technologies such as next-generation power batteries, intelligent driving technologies, and collaboratively promoting the low-carbon development of energy supply, material provision and manufacturing processes.
However, it’s also important to recognize that the Chinese new energy vehicle industry faces challenges in achieving greater breakthroughs, especially in establishing a larger competitive advantage in the global market.
From a market perspective, an important indicator measuring a country’s comprehensive strength in the automotive industry is its recognition in the global market. Despite the accelerated pace of “going global” by Chinese new energy vehicle makers in recent years, the total volume in overseas markets still needs to be increased. According to data from the China Association of Automobile Manufacturers, in the first 10 months of this year, domestic sales of new energy vehicles were 8.69 million units, more than eight times the volume of new energy vehicle exports during the same period. This means that currently, Chinese new energy vehicle sales are still primarily domestic, with a low proportion of exports.
The automotive industry is highly competitive on a global scale. Currently affected by intensified global competition and increased geopolitical frictions among other external factors, whether continuing to expand into global markets or enhancing supply chain resilience, China’s new energy vehicle industry will face challenges and pressure. This is an objective problem that must be acknowledged, calling for a clear understanding and proactive preparation for potential challenges in the future.