China sets 'entering ranks of auto power' as goal for first time, Economic Daily says challenges remain

China has set a clear target to join the ranks of the world's leading automotive nations by 2030. The Ministry of Industry and Information Technology, along 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). 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." The wording is restrained but significant. In terms of actual development, China's overall industrial chain ecosystem for intelligent electric vehicles is already globally competitive. The country's new energy vehicles (NEVs) and power batteries for passenger cars are among the world's leaders.

The Plan outlines three key battles for the industry:

1. The Battle for Breakthroughs in Core Technologies

In the first half of the development of new energy vehicles, China focused on electrification, leading the world through market scale and policy support. In the second half, the focus shifts to intelligentization, where the competition is about 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 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 industry ailment, with price wars putting even leading companies under severe pressure. For the first time, a national document includes capacity warning and regulation measures. The Plan aims to curb new capacity by strictly controlling the establishment of new independent NEV projects.

3. The Battle for Global Expansion Through "Systematic Overseas Presence"

In 2025, China exported 8.32 million vehicles to more than 200 countries and regions. While these numbers are impressive, overseas expansion cannot remain at the level of product export. The industry must build brand awareness and participate in the development of international standards. To truly enter mainstream markets in Europe and the United States, success depends 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.

Becoming an automotive power is not the final destination. It represents a new starting point for China's automotive industry to transform from a follower into a rule-setter. Looking ahead, China's automotive industry will continue to move toward greener, smarter, higher-end, and more international development, continuously expanding its competitive advantages and providing solid support for the high-quality development of China's economy.

(Source: Economic Daily)