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 support

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 is more closely matching overseas user needs and boosting product competitiveness.