The China car market is seeing weaker internal-combustion engine (ICE) sales and
stronger new-energy vehicle (NEV) demand, Industry Association deputy
secretary-general Chen Shihua said. She said higher oil prices are raising ICE
operating costs and enhancing NEV economics, while domestic automakers’
intensive R&D and rapid NEV model iteration—plus differentiated products—are
reactivating market potential. NEV exports are strong, reflecting industrial
upgrading and rising competitiveness supported by policy guidance and industry
coordination. China has a complete, efficient NEV supply chain with scale
economies and resilient suppliers; rapid iteration of vehicle OS, advanced
driver assistance and cockpit interaction features are more closely matching
overseas user needs and boosting product competitiveness.
