In a September 15 editorial, the Securities Times argued that China's auto industry is moving from "exchanging price for volume" to a "value-first" strategy, after nine ministries including the Ministry of Industry and Information Technology (MIIT) jointly released the "15th Five-Year Plan for the Intelligent Connected New Energy Vehicle Industry."
The plan sets the goal that by 2030 China's intelligent connected NEV industry will further consolidate its whole-chain advantages and enter the ranks of the world's top automotive powers. NEV passenger-car sales are targeted at 70% of the domestic market and commercial vehicles at 40%.
The editorial notes that "big" means sales, scale and penetration; "strong" means profit, brand and a voice in technical standards. To leap from an auto giant to an auto powerhouse, China must move from scale-led to value-led, and from following or running alongside to global leadership.
China's NEV production and sales have ranked first in the world for 11 consecutive years. BYD's NEV sales top the globe, and CATL has led the world in power-battery market share for nine straight years. The plan underscores technology setting the rules as the industry sheds the "price war" mentality for a value-based future.
Source: Securities Times
