China writes 'entering ranks of auto power' into industry plan for first time, Economic Daily says challenges remain

China has set a strategic goal to join the ranks of the world's leading automotive nations by 2030, according to a newly released industry 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, power batteries, and passenger cars leading in many areas.

Three Key Battles Ahead

The Plan outlines three critical challenges for the industry:

1. The Battle for Core Technologies

In the first half of the new energy vehicle race, China focused on electrification, leading globally through market scale and policy support. In the second half, the focus shifts to intelligentization, where the competition hinges on underlying hard power. This requires breakthroughs in key foundational materials, operating systems, industrial software, and automotive chips.

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

Currently, the capacity utilization rate of China's domestic 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 sector was only 3.8%. "Revenue growth without profit growth" has become a common industry ailment, with price wars straining even leading companies. In response, capacity warning and regulation mechanisms have been included in a national document for the first time. The Plan aims to curb new capacity by strictly controlling the approval of new independent new energy vehicle projects.

3. The Battle for Global "Systematic Expansion"

In 2025, China exported 8.32 million vehicles to over 200 countries and regions. While these numbers are impressive, the Plan emphasizes that going global must go beyond 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, Chinese automakers must rely on brand strength, standard-setting influence, and localized operational capabilities. The Plan sets a target to cultivate several vehicle manufacturers that rank among the global top ten in sales and several parts suppliers among the global top 100. This is not just a quantitative goal but a qualitative requirement.

A New Starting Point

Becoming an automotive power is not the final destination, but 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)