China's Auto Industry Enters Sprint Phase from 'Large to Strong', Targets World Power Status by 2030

The Ministry of Industry and Information Technology, together with eight other government departments, recently released the "15th Five-Year Plan for the Development of the Intelligent and Connected New Energy Vehicle Industry" (hereinafter referred to as the "Plan"). The Plan sets a target for China to further consolidate its competitive advantages across the entire intelligent and connected new energy vehicle (NEV) supply chain by 2030, and to enter the ranks of the world's automotive powerhouses.

From becoming the world's largest automobile producer and consumer for the first time in 2009, to setting the goal of becoming an "automotive powerhouse," China's auto industry has now entered the decisive sprint phase of transitioning "from large to strong." This milestone is built on the foundation of the industry's leapfrog development in recent years—it is both a confirmation of existing achievements and a strategic blueprint for the future.

A Decade-Long Journey from Volume to Strength

The year 2009 is widely regarded as the starting point of China's journey from a large auto market to a strong one. After becoming the world's top producer and consumer, a consensus quickly emerged across the industry that China must evolve "from large to strong." Key milestones include:

• 2012: The automotive industry development plan was elevated to the national strategic level for the first time.
• 2013: The Ministry of Industry and Information Technology and other ministries began drafting the China Automotive Powerhouse Development Strategy.
• 2017: The Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology jointly issued a medium- to long-term development plan for the auto industry, formally translating the "from large to strong" vision into national policy.

Scale as the Foundation

China's massive production and sales volumes provide the bedrock for its push toward automotive leadership. In 2025:

• Total vehicle production: 34.531 million units, up 10.4% year-on-year.
• Total vehicle sales: 34.4 million units, up 9.4% year-on-year.
• Consecutive years above 30 million units: 3 years.
• Consecutive years as global No. 1: 17 years.

For new energy vehicles specifically:

• NEV production: 16.626 million units.
• NEV sales: 16.49 million units.
• Consecutive years as global No. 1: 11 years.

Globally, China's share of the world auto market reached 35.6% in 2025, up 1.4 percentage points from the previous year. Notably, Chinese automakers sold nearly 27 million vehicles worldwide in 2025, surpassing Japanese automakers for the first time to claim the global sales crown. This sustained scale advantage provides a solid market foundation for achieving the goal of becoming an automotive powerhouse.

Technology as the Backbone

While scale is the entry ticket, technological leadership is the true passport to global dominance. The large-scale deployment of intelligent and connected technologies is reshaping the core competitiveness of China's auto industry.

• In the first three quarters of 2025, the penetration rate of passenger cars equipped with L2-level combined driving assistance reached 64%.
• By 2026, this penetration rate climbed further to 70%.
• The penetration rate of models equipped with navigation-based driving assistance exceeded 30%.

More significantly, L3-level conditional automated driving has moved from closed-track testing into a new phase of commercial application. From technology validation to commercial deployment, and from local pilot programs to national-level bases, the industrialization of intelligent and connected vehicles is accelerating across the board.

Breakthroughs in core technologies are providing strong internal momentum for industrial upgrading. Key areas of progress include:

• Power batteries
• Charging technology
• Automotive chips
• Intelligent driving systems

Many of these technologies have reached internationally leading levels. More importantly, they have achieved large-scale commercial application in the Chinese market, enabling rapid iterative innovation. China has formed an automotive technology ecosystem that fosters new technologies, new business models, and new industry formats—all of which lay a solid technical foundation for the automotive powerhouse goal.

Brand as the Ambition

Gaining global recognition for Chinese automotive brands is a key indicator of the country's emergence as a true automotive powerhouse. In recent years, China's auto exports have seen both volume and value rise, reflecting a substantial leap in international competitiveness.

2025 export data:

• Total vehicle exports: 7.098 million units, up 21.1% year-on-year (compared to 5.859 million units in 2024).
• NEV exports: 2.615 million units, surging 103.7% year-on-year.

The export structure is also improving. Sales in global high-end markets have grown significantly, and prices have remained firm—high-end markets are now paying for high-end quality. The shift from "exchanging volume for price" to "rising volume and price," and from product export to brand globalization, marks a transition from scale expansion to value creation.

This upgrade is not simply about selling more cars at slightly higher prices. It represents a fundamental shift from "Made in China" to "Created in China," and from "Chinese products" to "Chinese brands." Having moved from "trading market access for technology" to "winning markets with technology," China's auto industry has completed a historic transformation.

A Strategic Path Forward

China's auto industry now stands at a historic inflection point. The transition "from large to strong" is not a simple accumulation of scale, but a systemic upgrade of capabilities. Accordingly, the Plan outlines key tasks including:

• Enhancing technological innovation capabilities
• Promoting the optimization and upgrading of the industrial system
• Opening new horizons for global industrial cooperation

These tasks form a complete pathway—from technological breakthroughs to industrial collaboration, and from domestic governance to global partnerships. Moving beyond a competition of scale and prioritizing quality and efficiency, China's auto industry—driven by technological innovation, led by intelligent and connected technologies, and supported by global expansion—is now sprinting with full force toward its goal of becoming a world-class automotive powerhouse.

(By Li Zhiyong)