Think Tank

Why are new energy vehicles becoming increasingly popular

2025-10-11   

During the National Day and Mid Autumn Festival holidays, driving new energy vehicles for travel has become an increasingly popular choice for more and more people. According to data from the National Energy Administration, during the National Day and Mid Autumn Festival holidays, the amount of new energy vehicle charging reached a historic high for the same period. This also indicates from one aspect that the market share and utilization rate of new energy vehicles in China are accelerating. New energy vehicles are an important direction for the green development, transformation and upgrading of the global automotive industry, and also a necessary path for China to transform from a major automotive country to a strong automotive nation. By 2024, the number of new energy vehicles in China will reach 31.4 million, more than five times the 4.92 million at the end of the 13th Five Year Plan period. The Development Plan for New Energy Vehicle Industry (2021-2035) proposes that by 2025, the sales volume of new energy vehicles will reach about 20% of the total sales volume of new vehicles. In the first eight months of this year, the sales of new energy vehicles in China have reached 45.5% of the total sales of new cars, and this number is expected to exceed 50% by the end of the year. This means that the planned goals for the new energy vehicle industry during the 14th Five Year Plan period have been exceeded ahead of schedule. Behind the increasing prevalence of new energy vehicles is that they are easier to drive. During the 14th Five Year Plan period, industry enterprises increased investment, overcame a number of technical difficulties, and significantly improved the quality and performance of products. For example, the average driving range of pure electric passenger cars is close to 500 kilometers, the cost of power battery units is reduced by 30%, but the lifespan is increased by 40%, and the charging rate is also increased by more than three times. 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 this year. At the same time, infrastructure such as charging stations and battery swapping stations are becoming increasingly sophisticated. As of the end of August this year, the total number of electric vehicle charging infrastructure (guns) in China has reached 17.348 million, a year-on-year increase of 53.5%. Among them, there are 13379 charging stations equipped with high-power charging equipment nationwide, and over 100000 high-power charging guns. These new infrastructure projects have effectively improved the user experience of new energy vehicles. The automotive industry is a strategic pillar industry of the national economy and an important carrier of the new round of technological revolution and industrial transformation. As a typical representative of new quality productivity, new energy vehicles not only lead the current automotive industry to accelerate transformation and upgrading, but also make increasingly prominent contributions to China's economy and society. In the past five years, China has seized the opportunity of the development of electric and intelligent vehicles, and significantly improved the overall competitiveness of the industry. In 2024, the total consumption of new energy vehicles in China will exceed 2 trillion yuan, which not only reshapes the innovation chain, supply chain, and value chain ecosystem of the automotive industry, but also effectively drives the rapid development of the upstream and downstream of the industry chain and related industries, forming huge economic and social benefits and making important contributions to high-quality economic development. In the era of traditional fuel vehicles, European, American, Japanese, and Korean car companies have long dominated the global market with their century long accumulated technological barriers, perfect supply chain systems, and mature brand recognition. Self owned brand passenger cars not only have a low market share, but most of them are located in the middle and low end of the industry chain and value chain. Electrification and intelligence have triggered a new round of industrial transformation, bringing rare opportunities for China's automotive industry to overtake and change lanes. Driven by strong new energy vehicles, domestic brand passenger cars sold 12.642 million units in the first eight months of this year, accounting for nearly 70% of the market share. More importantly, driven by high-end models such as NIO ES8 and WENJIE M9, domestic brand products have entered the BBA fortress, achieving a breakthrough in brand premium ability and promoting the transformation of China's automotive industry from "scale leading" to "value leading". From the perspective of exports, new energy vehicles are also accelerating their entry into the global market. In the first eight months of this year, China's automobile exports reached 4.292 million units, a year-on-year increase of 13.7%. Among them, the export of new energy vehicles was 1.532 million units, a year-on-year increase of 87.3%. Currently, new energy vehicles have not only become the dominant force in China's automobile market, with green brand cars everywhere, but also an increasing number of Chinese brand new energy vehicles on the streets of some traditional automobile powerhouses. At last month's Munich International Auto Show, a German audience test drove and said that the driving experience and interaction level of Chinese new energy vehicles have surpassed many traditional European brands, and "freshness is turning into trust". While leading the consumption demand of global consumers, especially young consumers, China's new energy vehicles inject strong momentum into the electrification transformation of the global automotive industry. The vigorous development of new energy vehicles in China not only profoundly changes the competitive landscape of the global automotive industry, but also accelerates the reshaping of the global automotive supply chain. Not long ago, Automotive News released the 2025 Global Top 100 Automotive Parts Suppliers list, with 15 Chinese automotive parts companies already on the list. Among them, Ningde Times ranks fifth. Cooperating with Chinese vehicle and supply chain enterprises, equipped with batteries and intelligent driving technology from China, has become the best choice for more and more multinational car companies to accelerate their electrification transformation. From freshness to trust, the leading position of China's new energy vehicles today is not only due to the advantages of a super large domestic market, a perfect and efficient supply chain, strong engineering capabilities, a culture of rapid technological iteration, and a daring entrepreneurial spirit, but also thanks to the strategic guidance and support at the national level and the "advanced layout" of infrastructure. This comprehensive innovation breakthrough from the whole vehicle to the supply chain and infrastructure not only reshapes China's position in the global industrial chain, but also contributes important "Chinese solutions" and "Chinese wisdom" to the world's technological progress and consumer welfare. (New Society)

Edit:Luo yu Responsible editor:Wang er dong

Source:ECONOMIC DAILY

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