Economic Daily: China Must Win Three Tough Battles to Become an Automotive Power

China aims to join the ranks of the world's leading automotive nations by 2030, according to a newly released industrial plan. The Ministry of Industry and Information Technology, along with eight other government departments, recently issued the "15th Five-Year Plan for the Development of the Intelligent and Connected New Energy Vehicle Industry" (hereinafter referred to as the Plan). This marks the first time that "entering the ranks of world automotive powers" has been written into an industrial plan.

Notably, the Plan uses the phrase "entering the ranks of world automotive powers" rather than "becoming a fully established automotive power." This restrained wording carries significant meaning. In terms of actual development, China's overall industrial chain ecosystem for intelligent electric vehicles is already globally competitive, with the country's new energy vehicles and power batteries for passenger cars leading worldwide.

Three Key Battles Ahead

1. The Battle for Core Technologies

In the first half of the development of new energy vehicles, China focused on electrification, leveraging market scale and policy support to lead globally. In the second half, the focus shifts to intelligentization, where the competition hinges on underlying hardcore capabilities. This requires breakthroughs in key foundational materials, operating systems, industrial software, and automotive chips.

2. The Battle Against "Involution" to Regulate Industrial Order

Currently, the capacity utilization rate of China's automotive industry is only about 70%, below the healthy threshold of 75%. Meanwhile, in the first half of this year, the profit margin of the automotive manufacturing industry was only 3.8%. "Revenue growth without profit growth" has become a common ailment in the sector, with price wars leaving even leading companies struggling to breathe.

In response, capacity early warning and regulation have been written into a national document for the first time. The Plan aims to curb new capacity by strictly controlling the establishment of new independent new energy vehicle projects.

3. The Battle for Global "Systematic Expansion"

In 2025, China exported 8.32 million vehicles to more than 200 countries and regions worldwide. While these numbers are impressive, the Plan emphasizes that going global cannot remain at the level of product export. It calls for building brand awareness and participating in the development of international standards. To truly enter mainstream markets in Europe and the United States, China must rely on brand strength, standard-setting influence, and localized operational capabilities.

The Plan proposes cultivating several vehicle manufacturers that rank among the global top ten in sales and several parts suppliers among the global top 100. These are not just quantitative targets but also qualitative requirements.

A New Starting Point

Becoming an automotive powerhouse is not the final destination, but rather a new starting point for China's automotive industry to transform from a follower into a rule-maker. Looking ahead, China's automotive industry will continue to move toward green, intelligent, high-end, and international development, continuously expanding its competitive advantages and providing solid support for the high-quality development of China's economy.

(Source: Economic Daily)