2026 World NEV Conference: Global industry shifts from scale expansion to resilient growth

By Science and Technology Daily Reporters Dai Xiaopei and Wang Zhuhua

The 2026 World New Energy Vehicle (NEV) Congress was held from September 22 to 24 in Haikou, Hainan. Under the theme "Transformation and Upgrading: Resilient Growth," the event marked the eighth consecutive year the congress has been hosted in Hainan.

From government officials to industry leaders, a clear consensus emerged: the global NEV industry is transitioning from the "first half" — driven by scale and speed — to the "second half," which prioritizes quality and profitability.

Market Data Highlights

• In the first half of 2026, global NEV sales reached 11.234 million units, a year-on-year increase of 14%, with a market penetration rate of approximately 24%.
• China's market remained robust, with 7.446 million units sold in the same period, up 7.3% year-on-year. The penetration rate hit 49.6%, and exports totaled 2.355 million units.

Keynote Address: A Call for Quality Growth

Wan Gang, Honorary President of the China Association for Science and Technology and President of the World NEV Congress, stated in his keynote report that the global NEV market is entering a phase of stable growth and widespread adoption.

"China's NEV industry has forged a path of deep integration between technological and industrial innovation," Wan said. He urged continued efforts to improve industry quality and efficiency, aiming for NEVs to become the mainstream of new vehicle sales by 2035, contributing significantly to a comprehensive green transformation of the economy and society.

Profitability Pressure Intensifies

Despite growth in scale, profitability has become a central concern.

According to data from the China Association of Automobile Manufacturers, the average profit margin for domestic vehicle manufacturing in the first half of this year fell to 1.5% — the lowest level in nearly a decade.

Bernd Martens, Member of the Board of Management of the Volkswagen Group, noted that while the rapid adoption of NEVs, intelligent driving, and AI is accelerating innovation, companies face challenges such as shorter payback periods for R&D investment and mounting profitability pressure.

Accelerated Product Cycles

A key driver of profitability pressure is the accelerating pace of product iteration.

• Previously, a vehicle model maintained a lifecycle of about 7 years.
• That cycle has now been compressed to approximately 3 years.
• "New models often reach peak sales within three months of launch, as consumer attention quickly shifts to the next generation," Martens said.

Thomas Schmall, Senior Executive Vice President of Mercedes-Benz (China) Investment Co., Ltd., emphasized that after the waves of electrification and intelligence, the automotive industry now needs another transformation: from high-speed growth to high-quality development, from scale expansion to value creation, and from competing on speed to competing on quality.

Gao Le, Board Member of BMW Group, argued that future competitiveness in the automotive industry depends not only on the speed of technological innovation but also on quality, safety, efficiency, and long-term value. He called for open collaboration to build a more resilient industrial and supply chain.

Technology Pathways: Diversity and Parallel Development

"Diversified and parallel" became a recurring theme in discussions on technology roadmaps.

Hildegard Müller, President of the German Association of the Automotive Industry (VDA), told Science and Technology Daily that the electric transition requires a multi-path approach, promoting the application of battery electric vehicles (BEVs), plug-in hybrids (PHEVs), extended-range EVs, and hydrogen fuel cell vehicles based on local conditions.

Yasunobu Matsunaga, Vice Chairman and Executive Director of the Japan Automobile Manufacturers Association (JAMA), also advocated for diversified development paths.

Zhu Huarong, Chairman of Changan Automobile and Chairman of the World New Energy Vehicle Development Organization, predicted that no single technology pathway will dominate globally in the next 10 to 15 years. "Diversified and parallel development is the rational choice," he said.

Open Cooperation Amid Trade Barriers

In the face of trade barriers and supply chain restructuring, open cooperation emerged as a shared call to action.

Müller noted that competition and cooperation are not opposites. "For the German automotive industry, China is not only a key sales market and sourcing hub but also a critical innovation center. Doing business in China's highly competitive market forces German automakers to maintain their global innovation leadership."

Zhu Huarong proposed four initiatives:

1. Establish a joint policy dialogue mechanism.
2. Build a shared safety governance system.
3. Create a collaborative intellectual property protection mechanism.
4. Share the fruits of green development.

He highlighted the "safety triangle" of NEVs — power battery safety, intelligent driving safety, and connected vehicle data safety — and called for the urgent establishment of unified global safety standards.

Chris Mason, CEO of the International Federation of Automotive Engineering Societies (FISITA), acknowledged the challenge: "Technology is iterating rapidly, and product cycles are shortening, but standards cannot be updated at the same speed. It's not just about R&D speed; the entire supporting industrial system must evolve in sync. This is the challenge of our era." He stressed that collaboration is key to achieving unified global standards, and that the industry must advance through dialogue and long-term cooperation.

Editor: Li Mengyi