Amid a transformation of electrification and intelligence, China’s auto market is undergoing an unprecedented change. It not only leads the world in NEV industrial chain but has also evolved into a global hub for automotive innovation—driven by technological breakthroughs, optimized product layouts, and the development of industrial ecosystems. According to Intelligent NEV Technology Trends and Market Outlook, a report by EV100 Plus, the industry is experiencing full-chain shifts from technological breakthroughs to market restructuring, outlining six key trends for intelligent NEVs.
1. China Emerges as a Global Hub for Automotive Innovation
Driven by the dual forces of electrification and intelligence, automakers and suppliers are accelerating the adoption of high-voltage fast charging; next-generation battery technologies are rolling out faster; advanced driving assistance systems (ADAS) are becoming standard across models; multimodal large models are advancing assisted driving; electrical and electronic architectures are shifting from distributed to domain-centralized and centralized; and domestic automotive chips are gaining momentum.
2. Domestic Brands Break Through with Diverse Product Strategies
China’s auto market is the world’s most competitive. In markets like Germany, the U.S., and Japan, the top 10 passenger car brands hold over 70% of the market. In contrast, China has more than 250 auto brands, with the top 10 capturing only 50%. This intense competition drives innovation. As seen at the 21st Shanghai International Auto Industry Exhibition, domestic brands are breaking through with diverse strategies, targeting premium and personalized segments.
3. Niche Markets Shift from Blue Ocean to Red Oceans
Full-size SUVs have become a new battleground. Rising living standards and higher vehicle ownership in China are fueling upgrade-driven demand. In 2023, trade-ins accounted for over 50% of car sales—the first time—boosted by incentives. Demand for larger space has surged, shifting preferences toward bigger SUVs. The share of C-class and above SUVs rose from 3% in 2020 to 15% in 2024. At this year’s Shanghai International Auto Industry Exhibition, AITO, ONVO, Deepal, and Zeekr launched new mid-to-full-size SUVs, sparking a new round of competition.
4. Joint Ventures Enter a New Phase of Electrification
Joint ventures are shifting from an “in China” model—with production and R&D based overseas—to “for China” approach. They struggled in the first wave of electrification: their fuel-vehicle market share dropped from 64% in 2020 to under 40% in 2024. Their early NEVs relied on fuel-vehicle compatible platforms or global models, leading to widespread product-market mismatches. In 2024, joint ventures held less than 15% of China’s NEV market. Yet they retain a large base of fuel-vehicle customers and strong brand equity, offering significant NEV potential. Responding to market changes, they are accelerating electrification. Toyota, Honda, Nissan, Mazda, Cadillac, Audi, and others unveiled new NEV lineups in Shanghai International Auto Industry Exhibition.
5. Safety Takes Priority in Combined ADAS
ADAS adoption continues to grow—L2 penetration in China’s passenger car market reached 55.7% in H1 2024. Even models under RMB 200,000 from Xpeng, Leapmotor, BYD, and Haval now include these systems as standard. Traditional joint ventures are catching up: the Audi A5L will feature Huawei Kunlun Intelligent Driving, while Honda, Nissan, and Cadillac are deepening ties with Momenta. At the same time, safety has become a core R&D and marketing focus. Ahead of the exhibition, on April 16, MIIT issued guidelines requiring automakers to fully test and validate ADAS functions, define system limits and safety measures, avoid exaggerated or false advertising, disclose information transparently, ensure production consistency, and strengthen safety for intelligent connected vehicles.
6. Intelligent Automotive Tech Drive Convergent Industries
The auto industry is expanding beyond traditional boundaries, forming a convergent ecosystem centered on intelligent connected vehicles. Technologies for intelligent cars, eVTOL, and humanoid robots share common foundations, integrated architectures, and cross-application use. Through technological application and scenario innovation, they are accelerating the industrialization of eVTOL and humanoid robots—while advancing automotive tech itself, moving from individual breakthroughs to systemic synergy.
