China's international competitive advantage in the new energy vehicle industry stems from over 70 years of arduous struggle and innovative development, benefiting from a complete industrial and supply chain system, a massive market scale, and intense market competition.
Strengthening internal capabilities and accumulating strength for future breakthroughs. Looking back at the development of China's automotive industry, the First Automobile Works began construction in Changchun in 1953; China's first domestically produced car rolled off the assembly line in Changchun in 1956; in 2009, China became the world's largest automobile producer and seller for the first time; and in 2023, automobile production and sales exceeded 30 million vehicles. From nothing to something, from small to large, China's automotive industry has weathered storms and forged ahead with determination. Especially in the last decade or so, the Chinese automotive industry has actively embraced the opportunities of electrification and intelligentization, accelerating its transformation towards new energy vehicles, achieving remarkable results in industrial development. China's production and sales of new energy vehicles have ranked first globally for nine consecutive years, with more than half of the world's new energy vehicles operating in China. Its electrification technology is generally at a global leading level, with breakthroughs in new charging technologies, high-efficiency drive systems, and high-voltage charging, and its application of mid-to-advanced autonomous driving technology is globally leading.
Improving the system and optimizing the ecosystem. China has established a complete new energy vehicle industry system, encompassing not only the production and supply network for traditional automobile parts, but also the supply system for batteries, electronic controls, electric drive systems, electronic products, and software for new energy vehicles, as well as supporting systems such as charging, battery swapping, and battery recycling. China accounts for over 60% of the global market share for new energy vehicle power batteries, with six power battery companies, including CATL and BYD, ranking among the top ten globally in terms of installed capacity. The country's shipments of key power battery materials such as cathodes, anodes, separators, and electrolytes account for over 70% of the global market share. Electric drive and control companies like BYD Power are among the world's leading players in market size. A number of companies developing and manufacturing high-end chips and intelligent driving systems have grown significantly. China has cumulatively built over 9 million charging infrastructure units and has over 14,000 power battery recycling companies, both ranking first globally in scale.
Equal competition and innovative iteration are key factors. China's new energy vehicle market is large in scale and has significant growth potential. The market is highly competitive, and consumers have a high acceptance of new technologies, providing a favorable market environment for the continuous upgrading of electrification and intelligentization technologies in new energy vehicles and the sustained improvement of product competitiveness. In 2023, China's production and sales of new energy vehicles reached 9.587 million and 9.495 million units respectively, representing year-on-year growth of 35.8% and 37.9%. The sales penetration rate reached 31.6%, accounting for over 60% of global sales.
Approximately 8.3 million new energy vehicles produced in my country were sold domestically, accounting for over 85% of the market. China is the world's largest and most open automotive market, where multinational and domestic automakers compete fairly and fully, promoting rapid and efficient iteration and upgrading of product technologies. Meanwhile, Chinese consumers have a high level of acceptance and demand for electrification and intelligent technologies. Data from a survey by the National Information Center shows that 49.5% of new energy vehicle consumers prioritize electrification performance such as driving range, battery characteristics, and charging time when purchasing a vehicle, while 90.7% indicated that intelligent functions such as vehicle connectivity and intelligent driving are factors in their purchasing decisions.
In 2025, global demand for new energy vehicles (NEVs) showed strong growth, with electric vehicle sales accounting for over 25% of total new car sales, a significant increase from less than 3% in 2019. This growth was mainly driven by emerging markets, where penetration rates surged, with some Southeast Asian countries reaching the highest penetration rates globally.
Regional demand varied significantly, with emerging markets showing outstanding growth potential.
• Southeast Asia: Under the policy window, NEV penetration reached 14% from January to October 2025, a year-on-year increase of 9 percentage points. Chinese automakers and Vietnam's Vinfast contributed the main incremental growth, with preferential import policies and the cost advantage of Chinese models being key factors.
• Europe: NEV penetration exceeded expectations in 2025, mainly due to increased sales of affordable models (such as the Renault 5 E-Tech) and the resumption of subsidies in some countries. However, in 2026, subsidies will favor lower-priced models and localized production, imposing compliance requirements on Chinese automakers. 2. Other regions: In North America, the Middle East, and Africa, demand for new energy vehicles is still in its early stages due to low oil prices, insufficient infrastructure, or policy restrictions; in Russia and Central Asia, gasoline-powered vehicles and hybrid vehicles are the mainstream.
A recent Forbes article stated that the mass-market electric vehicle sector in Europe remains relatively untapped, and Chinese automakers are aggressively entering this market.
Statistics show that nearly 10 Chinese automakers are currently exporting new energy vehicles to Europe, and Chinese electric vehicles already account for 10% of total electric vehicle sales in Europe. In 2021, China exported approximately 550,000 electric vehicles globally, with 40% going to the European market.
The Financial Times website, citing a report from the Mercator Institute for China Studies in Germany, stated that in 2021, China's market share in Europe was second only to Germany. An article on the US-based EV Insider website pointed out that Chinese electric vehicles are among the most popular in Europe, a "not surprising fact."
In many Asian countries, Chinese new energy vehicles are also gaining popularity.
The Japanese edition of South Korea's *Hankyoreh* recently disclosed data released by an automotive market research firm, showing that of the 896 new electric buses registered in South Korea in the first half of this year, 399 were made in China, accounting for approximately 44.5%. This figure was 23.2% in 2020 and 33.2% in 2021, indicating that "Made in China" products are very popular.
Recently, Singapore's *Lianhe Zaobao* published a report about a middle-class Singaporean family who, after careful selection, purchased a Chinese electric vehicle. The report stated that the total size of the ASEAN electric vehicle market reached nearly $500 million in 2021 and is expected to exceed $2.6 billion by 2027. Chinese automakers recognized this opportunity several years ago and began cultivating the Singaporean electric vehicle market.
In Israel, Geely Automobile's Geometry C electric vehicle has attracted attention from local media: "It can travel up to 460 kilometers on a single charge, traversing the north and south of Israel." In the first half of 2022, this model achieved a 22% market share in the Israeli pure electric vehicle market and was named "Best Buy of the Year" by a local automotive magazine. The Israeli financial newspaper *Globo* reported that at least 10 Chinese car brands, including BYD, NIO, Great Wall Motors, GAC Group, and SAIC Motor, are currently selling or will soon sell new energy vehicles in Israel.
The Spanish newspaper *El País* pointed out that battery technology is crucial for electric vehicles, accounting for almost one-third of the cost. Some Chinese automakers have invested heavily in new technologies and have been at the forefront of research into battery chemistry that relies less on expensive nickel and cobalt, giving Chinese electric vehicle brands a degree of resilience against cost risks.
The South Korean newspaper *Hankyoreh* reported that "Made in China" electric buses, with their long driving range and ability to run all day without recharging, are gradually gaining market share in South Korea due to their price and technological competitiveness. The article noted that charging costs are significantly higher during the day than at night in South Korea, and shorter battery range increases costs. For example, in Seoul, charging costs 50 to 100 won per kilowatt-hour at night, but over 200 won during the day. Chinese-made electric buses only need to be charged at night to meet their daily needs.
The Nikkei Asian Review website reported that the competitiveness of Chinese electric vehicles stems from industrial agglomeration. The report introduced the concept of "scale competitiveness" proposed by CATL (Contemporary Amperex Technology Co., Limited), a battery manufacturer, stating that the company has implemented large-scale investment plans to increase production capacity and has established a major material procurement network in China. Japanese auto parts manufacturers estimate that thanks to industrial agglomeration, Chinese electric vehicles have lower production costs, giving them an increasingly obvious competitive advantage.
A report in the German business daily Handelsblatt points out that, so far, electric vehicles sold in Europe have been mainly expensive models. However, the mass market is the "key to success" for electric vehicles. Some investors believe that, with its appeal to the mass market, Chinese electric vehicles will rapidly flood into Europe and capture a larger market share.
The global new energy vehicle market is experiencing exponential growth. Data shows that in 2023, new energy vehicles accounted for over 18% of global light vehicle sales, an increase of nearly 15 percentage points compared to five years ago. The European market is particularly prominent, with countries like Norway and Germany having new energy vehicle penetration rates exceeding 30%. The EU's strict carbon emission regulations (requiring the sale of zero-emission vehicles by 2035) are accelerating the industry's transformation.
Southeast Asia has emerged as a new growth engine, with Indonesia and Thailand attracting companies like BYD and Great Wall Motors to build factories through tax breaks, driving demand for local charging infrastructure investment. In the US market, spurred by the Inflation Reduction Act, the construction of a localized supply chain has accelerated, creating significant opportunities for supporting services such as charging pile installation and battery repair.
