EconoScope | China's NEV production enters new phase of high-quality growth
(ECNS) -- China has become the first country to produce over 10 million new energy vehicles (NEVs) in a single year, a milestone achieved before the end of 2024. This marks the ninth consecutive year China has led the world in NEV production and sales.
This achievement underscores the rapid progress of China's NEVs industry.
In 2009, China launched the “Ten Cities, Thousand Vehicles” program to boost EVs adoption. Nearly a decade later, in 2008, the country reached an annual production and sales volume of over 1 million NEVs. By 2022, this figure had soared past 5 million. In a stunning leap, production surpassed 10 million units in just two additional years.
Several factors have fueled this extraordinary growth, said Zhang Xiang, a researcher at the Automotive Industry Innovation Research Center of North China University of Technology.
Speaking to China News Network, Zhang identified four key drivers: advancement in NEV technology, increasing consumer acceptance, supportive government policies and rapid growth in exports.
The automotive industry plays a critical role in modern economies, boasting extensive supply chains, job creation, a vast market, and significant technological integration.
NEV sector involves a broad spectrum of industries, from raw materials and power batteries to artificial intelligence (AI) tech, vehicle manufacturing and charging infrastructure. This complexity has made the sector fiercely competitive and strategically vital
Zhang noted that achieving economies of scale through large production has been pivotal in reducing per-unit costs, strengthening the industry chain, and unlocking opportunities in related sectors like AI and automotive software.
China’s ascent in the NEV market has reshaped the global passenger car landscape.
In the first half of 2024, NEVs accounted for 35.2 percent of the domestic market in China, more than any other major economies.
An article in The New York Times earlier observed that rising NEV exports could give Chinese manufacturers a competitive edge, challenging established automakers in Europe and the U.S.
However, Zhang cautioned that China’s NEV industry still faces significant obstacles, including Western technological blockades and tariffs.
To maintain momentum, Chinese companies must strategically target overseas markets with high growth potential, Zhang advised. This aligns with global trends toward carbon reduction and phasing out fuel-powered vehicles.
He also stressed the importance of mastering core technologies such as autonomous driving, high-precision mapping, automotive operating systems, and automotive chips.
“Whoever masters the core technologies will truly be unbeatable,” Zhang stated.
As competition intensifies, Zhang urged domestic automakers to focus on next-generation automotive technologies, products, and services to achieve high-quality growth and strengthen their global competitiveness.