China's new-energy vehicle (NEV) industry has entered a new phase driven by both market forces and technology, moving beyond policy-led growth, according to Wang Fang, chief scientist at the China Automotive Technology and Research Center (CATARC). Speaking at the opening ceremony of the 2026 Taida Forum on September 19, Wang said the industry's focus is shifting from penetration rates and market share to orderly development and profitable competition.
Wang disclosed key industry data: global NEV sales reached 20.7 million units in 2025, with a penetration rate of 23.6%. China accounted for 13.36 million units, or 70% of the global total, with a domestic penetration rate of 50%—the 11th consecutive year China led the world. Domestic brands held a 75% share of the Chinese market. The penetration of L2-level driver assistance in passenger cars rose from 25% in 2021 to 64.9% in 2025, and has since surpassed 70%, according to the report by Gasgoo, as carried by D1EV.
Batteries, charging, and intelligent connectivity
Wang identified three main competitive fronts: batteries, charging, and intelligent connectivity. In the battery sector, the industry is focusing on safety, energy replenishment, and solid-state technology. Solid-state batteries have become a new global competition track, with Japan and South Korea focusing on sulfide electrolytes, the United States on polymer electrolytes, and Europe on oxide electrolytes. Chinese companies are pursuing multiple routes in parallel.
On charging, some models now achieve peak charging power of 300 to 500 kW. As of June, the country's charging infrastructure exceeded 23 million units, with a rapidly increasing share of high-voltage platforms rated at 750V and above 1,000V. Wang stressed that fast charging is a coordinated effort involving vehicles, charging piles, and the grid, not a single-vehicle breakthrough. She cited kilovolt-level high-voltage architectures, full-lifecycle fast-charging safety, and flexible charging as core challenges.
Intelligent driving and going global
In intelligent connectivity, technology is evolving across four directions: intelligent driving, intelligent cockpits, chassis, and vehicle-road-cloud integration. Key areas include end-to-end large models, multimodal interaction, wire-controlled chassis, and C-V2X communication.
Wang also warned that Chinese NEV exports face accelerating barriers in tariffs, green standards, and data. During the intelligentization process, functional safety, expected functional safety, information security, and data security are non-negotiable foundations.
