A New Era of Automotive Innovation, 100 Years After the Industry's Birth

Intelligent connected electric vehicles (ICEVs) are rapidly emerging as a key direction for the future of the automotive industry worldwide. This transition—from traditional vehicles to electric vehicles, and now to intelligent connected EVs—marks another major upgrade in the evolution of the auto industry.

China overtakes by changing lanes, capturing the crown jewel of modern industry.

China's intelligent connected electric vehicle industry is booming. China has ranked first in global automobile production and sales for 15 consecutive years (from 2009 to 2023). In 2023, annual automobile production reached 3016.1 million units and sales hit 3009.4 million units, representing year-over-year growth of 11.6% and 12%, respectively, setting a new historical record. On September 14, 2024, China's annual output of new energy vehicles surpassed 1000 million units for the first time. By 10 month of 2024, the market penetration rate of new energy passenger cars reached 52.9%, making China the world's largest electric vehicle market.

Complete industrial chain and the world's leading power battery manufacturer

China boasts the world's most complete new energy vehicle (NEV) industry ecosystem, spanning material R&D, engineering design, manufacturing management, and final assembly integration. Chinese battery technology leads globally. In the 25% growth of global EV battery installations over the past 10 months in 2024, six Chinese companies secured a combined market share of 65.5%.

Drive domestic demand and expand globally

China boasts the world's most complete new energy vehicle (NEV) industry chain, spanning material R&D, engineering design, manufacturing management, and final assembly integration. Chinese battery technology leads globally. In the first 10 months of 2024, global NEV battery installations grew by 25%, with six Chinese companies ranking among the top players and capturing a combined market share of 65.5%. NEV penetration in tier-1 cities has reached 46.5%-60% and continues to rise. Meanwhile, as economies develop and living standards improve in tier-2, tier-3, and lower-tier cities, demand for smart connected electric vehicles is surging. In 2024, NEV sales growth in tier-3 and below cities hit 63%, nearly 1.6 times the rate seen in tier-1 and tier-2 cities. Chinese smart connected EVs hold comprehensive advantages in pricing, technology, and brand strength internationally. In the first quarter of 2026, China exported 95.4 thousand NEVs—a year-over-year increase of 116.2%—successfully entering markets in Europe (market share: 8%) and Southeast Asia (market share: 49%-66%).

Thriving ecosystem, collaborative growth

Control of key raw materials upstream, global supply in the midstream, and diversified innovation downstream, supported by comprehensive infrastructure. The intelligent connected electric vehicle industry spans battery materials and rare earth resources upstream; vehicle manufacturing and core component supply in the midstream; and sales, after-sales services, and shared mobility downstream.

Guided by National Strategy, Soaring to New Heights

Dual-carbon goals drive industrial transformation with clear planning, combined subsidies and tax incentives, and comprehensive local policy support. The government has introduced a series of energy-saving and emission-reduction policies to encourage traditional automotive manufacturers to transition to new energy vehicles, while significantly increasing R&D investment in intelligent connected technologies.

A Capital Feast, One After Another

Over the past five years, China's intelligent connected electric vehicle (ICEV) sector has attracted massive capital inflows. From 2021 to 2024, the compound annual growth rate of primary market investment in this field reached 22.3%–25.5%, with financing exceeding 800 billion yuan in 2024. It ranked first in the advanced manufacturing sector and emerged as one of the most active segments in the capital market. Capital sources are diversifying and becoming more balanced, primarily driven by venture capital and private equity funds (~40%), state-owned enterprises and local government platforms (~35%), and industrial investors (~20%). Overseas capital (~5%) is accelerating its entry. Since 2023, the share of state-owned and industrial capital has continued to rise, providing more stable financial support for the industry.

Cutting-Edge Tech, Prime Investment Grounds

Advanced autonomous driving algorithms continue to iterate and break new ground. Semi-solid-state batteries are scaling up for mass production, while full solid-state battery R&D is advancing aggressively. Domestic substitution of automotive-grade chips is progressing steadily, with numerous hard-tech innovation companies showing significant growth potential. Meanwhile, the underserved market offers substantial incremental opportunities for automakers, digital after-sales platforms for new energy vehicles remain in a long-term high-growth cycle, and domestic brands are accelerating their global expansion. These multiple high-potential tracks provide investors with diverse, high-quality deployment choices.

Continuous investment to build strong barriers

Technical bottlenecks, global competitive pressure, and regulatory uncertainty. Established automakers in Europe, the U.S., Japan, and South Korea benefit from decades of manufacturing history and technical expertise. High trade barriers, shifting domestic subsidy policies, and other factors pose significant challenges to industry growth.

Long-term strategic vision

Invest based on industry history, align with policy guidance, achieve long-term value growth, diversify across the industrial chain, and build a balanced portfolio. Industrial capital should focus on cultivating core enterprise competitiveness, driving technological innovation, and expanding market reach to support sustainable business development.