Currently, countries worldwide are vigorously developing new energy vehicles, and my country has included them among its seven strategic emerging industries. The development of energy-saving and new energy vehicles is a crucial measure for my country to reduce oil consumption and carbon dioxide emissions. The central and local governments at all levels have paid close attention to its development, successively introducing various support and cultivation policies to create a favorable policy environment for the development of new energy vehicles. In recent years, my country's new energy vehicle industry has also made significant progress in industry standards, industry alliances, enterprise layout, and technological research and development, and is expected to shoulder the historical responsibility of enabling China's automotive industry to achieve a "leapfrog development."

The development of new energy vehicles in my country is currently showing rapid growth, and the future trend remains positive. The following is a detailed analysis of the current status and trends of my country's new energy vehicle development: Current Status

1. Expanding Market Size:

■ In 2024, my country's production and sales of new energy vehicles continued to maintain rapid growth. According to data from the China Association of Automobile Manufacturers, in November, my country's production and sales of new energy vehicles reached 1.56 million and 1.512 million units respectively, setting new historical records. In the first 11 months, the cumulative domestic sales of new energy vehicles reached 10.121 million units, a year-on-year increase of 40.3%.

■ In 2024, my country's annual production of new energy vehicles reached 10 million units for the first time, marking a new stage of high-quality development for my country's new energy vehicle industry.

2. A Balance Between Policy Support and Market Drive:

■ In the early stages of industry development, policy guidance played a significant role and was key to the new energy vehicle industry's leapfrog development in this new arena.

■ With the expansion of the market size, the new energy vehicle industry is shifting from policy support to market drive, entering a new stage of development.

3. Continuous Technological Innovation:

■ In terms of power batteries, innovative technologies such as lithium manganese iron phosphate batteries, 46-series large cylindrical batteries, and hybrid solid-liquid batteries are entering the application phase, and 800V high-voltage fast-charging vehicles are seeing significant sales growth.

■ Domestically produced chips have basically achieved independent production in areas such as power chips, MCUs (microcontroller units), sensor chips, and memory chips.

■ In terms of in-vehicle operating systems, Huawei's HarmonyOS, NIO's SkyOS, Xiaomi's HyperOS, BYD's DiLink, and Geely's GKU0 have all made their debut, demonstrating their determination to dominate the future ecosystem of intelligent connected vehicles.

4. Continuously Increasing Market Penetration:

■ Since August 2024, when domestic sales of new energy vehicles first exceeded those of gasoline vehicles, the sales share of new energy vehicles in the domestic market has exceeded 50% for four consecutive months.

■ It is projected that by 2025, the penetration rate of new energy vehicles will exceed 55%. Development Trends

1. Sales Continue to Grow Rapidly:

■ my country's auto market sales are projected to reach approximately 32 million units by 2025, with new energy vehicle (including exports) sales reaching 16.5 million units, representing a growth rate of nearly 30%.

■ Domestic demand for new energy vehicles is expected to reach 15 million units, with a penetration rate exceeding 55%.

2. Plug-in Hybrids and Range-Extended Electric Vehicles Become Important Drivers of Growth:

■ Sales of plug-in hybrid and range-extended electric vehicles are projected to exceed 8 million units by 2025, representing a growth rate of 60% and accounting for nearly 50% of total new energy vehicle sales.

3. Rapid Growth in the New Energy Commercial Vehicle Market:

■ Domestic sales of new energy commercial vehicles are projected to reach 900,000 units by 2025, representing a significant year-on-year growth rate of 80%, with a penetration rate expected to reach 30%.

■ Rapid market growth is expected in short-distance, closed-loop scenarios, and the new energy heavy-duty truck sector.

4. Accelerated Mass Production of Solid-State Battery Technology:

■ Domestic shipments of solid-state battery technology (semi-solid-state and quasi-solid-state, etc.) for power batteries (including automotive and non-automotive applications) are expected to exceed 10 GWh by 2025.

■ All-solid-state batteries are expected to achieve small-batch mass production and application in vehicles within the next 2-3 years.

5. Comprehensive Acceleration of Intelligent Technologies:

■ Basic intelligent technologies are expected to achieve full coverage by 2025, with the penetration rate of L2 and above assisted driving reaching 65%.

■ AI technology will be widely applied in areas such as intelligent driving and intelligent cockpits, promoting the intelligent manufacturing upgrade of the automotive industry.

6. Accelerated International Development of New Energy Vehicles:

■ China's exports of new energy vehicles (including domestic production) are expected to reach 1.4 million units by 2025, with a growth rate of 10%.

■ Latin America, ASEAN, and the Middle East are key export regions for Chinese new energy vehicles.

7. Spillover of the Automotive Industry to Aggregated Industries:

■ The development of intelligent electric vehicles will drive the spillover of their core technologies to aggregated industries, forming a new industrial ecosystem.

■ Flying cars, humanoid robots, and other new products are expected to become new growth drivers. In summary, driven by policy support, market forces, and technological innovation, my country's new energy vehicle industry is experiencing rapid development. In the future, with further expansion of the market, continuous emergence of technological innovations, and accelerated internationalization, my country's new energy vehicle industry will usher in even broader development prospects.