Data from the China Association of Automobile Manufacturers shows that in October China's new energy vehicle sales reached 51.6% of total new-car sales, with monthly penetration crossing the halfway mark — meaning for every two new cars sold, one is now an NEV. New energy vehicles have surpassed fuel vehicles to become the mainstream product and dominant force in China's new-car market.
As a key variable reshaping the competitive landscape and the supply-chain system, NEVs are driving a comprehensive reconfiguration of suppliers. Data from the China Automotive Battery Innovation Alliance shows that in the first ten months of the year China's power battery installed capacity reached 578.0 GWh, up 42.4%, continuing to lead the global market.
Battery, chips and software — the three key areas that combine importance with uncertainty — are becoming the focus of future industry competition and supply-chain development. Zhang Yongwei, chairman of the China EV100, analyzed that Chinese enterprises have built a first-mover advantage in technology and industry, and that regardless of where a vehicle is built, the share of Chinese components keeps rising, with importance no less than the complete vehicle.
Xia Guang, deputy dean of the School of Automotive and Transportation Engineering at Hefei University of Technology, argued that Chinese enterprises should build a new-generation intelligent chassis with high adaptability, safety, control and comfort to achieve supply-chain autonomy and technological leadership. Industrial clusters are forming around NEV supply chains as regions gather strengths.
Observers noted that building an open, shared and resilient supply-chain system is central to the high-quality development of the NEV industry, as the industry moves from rivalry over scale toward competition over ecosystem and resilience.
Source: Economic Evening News
