During the 14th Five Year Plan period, new energy vehicles have continuously broken through in terms of production and sales scale, penetration rate, core technology, etc., and China's new energy vehicles have taken a new step towards becoming a strong automobile country. Galaxy Securities stated that looking ahead to the "15th Five Year Plan" period, expanding domestic demand and accelerating the development of new quality productivity are the two key tasks. Automobile sales are expected to benefit from the continuation of policies supporting domestic demand, and AI drives a new round of technological revolution, reshaping a new paradigm for the development of the automobile industry. The automotive industry will continue to focus on technological innovation in "two modernizations" and global industrial chain layout. In the era of new energy, the automotive industry is facing breakthroughs in various aspects. By 2025, under the background of the country's continued implementation of the trade in policy, new energy vehicles will see a simultaneous increase in production and sales. At the same time, the core technologies of the automotive industry continue to break through, and high-quality development has achieved results. According to data from the Passenger Car Market Information Joint Branch of the China Association of Automobile Dealers (CAAM), from January to August 2025, 9.38 million new energy vehicles were produced, a year-on-year increase of 31% and a penetration rate of 45%; The sales of new energy vehicles exceeded 9.6 million units, a year-on-year increase of 36.7%, and the sales of new energy vehicles accounted for 45.5% of the total sales of new cars. In August 2025, 1.33 million new energy vehicles were produced, a year-on-year increase of 23%, with a penetration rate of 48%. Xin Guobin, Deputy Minister of Industry and Information Technology, previously stated that there are more and more new energy vehicles around us. The production of new energy vehicles has jumped from around 1.4 million units in 2020 to around 13 million units in 2024, with sales achieving growth during the same period and the market size roughly doubling. The sales proportion of new energy vehicles has increased from 5.4% in 2020 to 40.9%. In terms of technological innovation, multiple breakthroughs have been made, and the quality of new energy vehicle products has been significantly improved. The average driving range of pure electric passenger vehicles is close to 500 kilometers, and the lifespan and charging rate of the power battery unit are all improved while reducing costs. The infrastructure such as charging stations and battery swapping stations has become more complete, and new energy vehicles are increasingly favored by consumers. The motor and electronic control systems are leading globally, and the domestication rate of the entire vehicle has exceeded 95%. The proportion of new passenger cars with combined assisted driving functions has increased from 16.2% in 2020 to 62.1% in the first half of 2025. China's automobile consumption has also made breakthroughs. Data shows that automobile consumption has risen from 3.94 trillion yuan in 2020 to 5.03 trillion yuan in 2024, breaking the three-year stagnation of 3.9 trillion yuan from 2018 to 2020. In August 2025, automobile consumption increased by 0.8% year-on-year; From January to August, automobile consumption increased by 0.5% year-on-year. In terms of investment growth rate, automobile investment has exceeded expectations in the past two years. The growth rate of automobile investment will reach 5.4% in 2024 and 20.2% in 2025. Automotive investment is 20 percentage points higher than manufacturing investment. At the same time, during the 14th Five Year Plan period, the growth rate of the automotive industry increased from 5.5% in 2021 to 9.1% in 2024, and the added value of the automotive industry increased by 10.5% from January to August 2025. Fu Bingfeng, Executive Vice President of the China Association of Automobile Manufacturers, stated that during the 14th Five Year Plan period, China will establish the world's most complete and resilient supply chain system for new energy vehicles. The integration of electrification, intelligence, and networking is accelerating, and China has transformed its first mover advantage in the field of new energy vehicles into an industrial leading advantage. The collaboration between government and enterprises has created a new situation for the development of the automotive industry. Breakthroughs in various aspects cannot be achieved without the top-level design of the government and the practical exploration of enterprises. As early as 2020, China launched the "New Energy Vehicle Industry Development Plan (2021-2035)", which clearly stated that developing new energy vehicles is the only way for China to move from a major automobile country to a strong automobile country, and is a strategic measure to address climate change and promote green development. In addition, China has issued corresponding documents on practical issues in the automotive industry multiple times. In response to the issue of downstream capital occupation in the automotive industry, the State Council has issued the "Regulations on Ensuring Payment for Small and Medium sized Enterprises", proposing to safeguard the legitimate rights and interests of small and medium-sized enterprises and optimize the business environment; In response to the economic development issues in the automotive industry, the Ministry of Industry and Information Technology and eight other departments have issued the "Work Plan for Stable Growth in the Automotive Industry (2025-2026)", which proposes to further increase efforts to promote automobile consumption; In response to the safety regulations for intelligent driving in the automotive industry, the Ministry of Industry and Information Technology has publicly released the mandatory national standard "Safety Requirements for Intelligent Connected Vehicle Combined Driving Assistance Systems" and solicited opinions from the society. Industry insiders have stated that the standards place higher demands on the driving safety of intelligent connected vehicles. Data shows that during the 14th Five Year Plan period, China has introduced more than 70 industrial policy measures and introduced over 100 national and industry standards. As a micro level practical subject, many car companies are transforming towards intelligence, electrification, digitization, and high-end direction: gradually promoting the comprehensive popularization of intelligent driving technology in the product matrix, leading the intelligent transformation of the automotive industry; Multiple technological routes such as pure electric, plug-in hybrid, battery swapping mode, and fuel cells coexist and develop in the market; The R&D investment of car companies has also repeatedly reached new highs. According to data from Tonghuashun iFinD, the total R&D investment (expensed R&D expenditure+capitalized R&D expenditure) of 18 listed car companies (A-share+H-share) disclosed in the first half of this year was 92.048 billion yuan, a year-on-year increase of 32.94%. During the 15th Five Year Plan period, it is expected to steadily increase. 2025 is the final year of the 14th Five Year Plan and a key year for the automotive industry to innovate and flourish. Xin Guobin stated that there are still some issues that cannot be ignored in the current development of the industry, such as the shortcomings of high computing power chips used in high-end process vehicles and the prominent problem of irrational competition in the industry. Guo Shougang, Deputy Director and First level Inspector of the Equipment Industry Department of the Ministry of Industry and Information Technology, stated that intelligent connected vehicles are a key carrier for the integration and development of technologies such as automobiles, artificial intelligence, information communication, cloud computing, and big data, and have become an important strategic direction for global automotive transformation and upgrading. Next, the Ministry of Industry and Information Technology will accelerate the formulation of the development plan for the intelligent connected new energy vehicle industry in the new era, support key core technologies such as artificial intelligence for vehicles, operating systems, and intelligent line controlled chassis, continue to improve and perfect the automotive technology standard system, deepen the pilot work of intelligent connected vehicles admission and road access, and the "vehicle road cloud integration" application, and solidly promote the high-quality development of China's automotive industry. Guohai Securities stated that the automotive industry is supported by the trade in policy, which will continue in 2025 to support upward automobile consumption. In the future, the automotive industry will upgrade its structure towards high-end and intelligent automobiles. Looking ahead to the 15th Five Year Plan, Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, stated that due to factors such as the increasing popularity of automobiles in the central and western regions, county and township markets, the shortened car ownership cycle brought about by electrification, and the gradual increase in overseas market share, the total number of automobiles in the future will reach 40 million units. We look forward to long-term and strong continuation policies in the future, including reducing personal income tax for car buyers, promoting new energy vehicles to rural areas, optimizing the application for C7 economy electric vehicle driver's licenses, exempting compliant pure electric vehicles with a range of less than 200 kilometers from purchase tax, encouraging marriage and childbirth to purchase cars, and more improvement measures to stimulate car purchase consumption and promote economic growth. (New Society)