Electric Vehicle Industry and Policy Water Carriers

In recent years, the development of new energy vehicles has marked a significant turning point and a milestone year for the industry. Image Source: Baidu Images Editor's Note The year 2017 witnessed remarkable growth in the global new energy vehicle market, with numerous strategies emerging to support the transition toward sustainable transportation. The shift toward comprehensive electrification has become an international consensus. Driven by technological advancements in electrification, intelligence, and connectivity, as well as business model innovations like sharing, service, and platform-based approaches, the new energy vehicle industry is no longer just about powertrain technology—it's about transforming the entire automotive landscape. Starting from this issue, *China Science and Technology Economic Weekly* will launch a special series on "China's New Energy Vehicle Revolution," exploring the evolution of electrification, intelligence, and shared mobility, while highlighting the broader trends shaping China’s new energy automotive industry. “We are witnessing a great automobile revolution,” said Chen Qingtai, President of the Centenary Association, at the 2018 China Electric Vehicle Centennial Party Forum. He emphasized that the momentum behind this transformation comes from rapid progress in new energy and information technologies, and the urgency stems from the need to reduce carbon emissions and protect the environment. According to Xu Heyi, Chairman of Beijing Automotive Group, the past year was a watershed moment for the new energy vehicle industry. “The technological and cost barriers between new energy vehicles and traditional automobiles have rapidly diminished. Market recognition has significantly increased, and the surge in production and sales has driven the expansion of the new energy ecosystem.” However, despite these achievements, China’s new energy vehicle market is still in the early stages of policy promotion, market acceptance, and long-term sustainability. Internal growth and innovation are essential for continued development. Industry Expansion In 2017, China produced 794,000 new energy vehicles and sold 777,000 units, accounting for 2.7% of total automobile output. This made China the world’s top producer for the third consecutive year. The personal car market saw rapid growth, with new energy passenger vehicles making up nearly 75% of sales. Technological advancements have also been impressive. The driving range of mainstream models now exceeds 300 kilometers, matching international standards. The energy density of battery cells from leading companies reached 2 Wh/kg, with prices dropping to 1.2 yuan/Wh—tripling since 2012. Major automakers have established robust R&D systems, investing over 8% of their budgets into new energy technologies, far exceeding the industry average. Infrastructure development is also progressing. By the end of 2017, China had built 214,000 public charging stations, a 51% increase from the previous year, with over 80% of new users installing private charging points. The Ministry of Transport aims to deploy 600,000 new energy vehicles in the transportation sector by 2020, with the 300,000 target already met by the end of 2017. Policy and Industry Synergy China’s new energy vehicle industry started late but has seen rapid growth due to increasing environmental awareness and supportive policies. The relationship between policy and industry development has been likened to water and boat—mutually reinforcing. The National Development and Reform Commission (NDRC) is working closely with other ministries to enhance coordination and improve policy frameworks, aiming for a healthy, sustainable development path. The Ministry of Transport continues to prioritize new energy vehicles in public transport, taxis, and logistics, with plans to expand their use further. In Qinghai, efforts are being made to advance lithium extraction technologies and establish a lithium battery research center. Governor Wang Liming emphasized the importance of securing high-quality lithium resources to support the growing new energy vehicle industry. Beijing Automotive Group aims to lead in new energy development, focusing on technology, industrial chain integration, and service ecosystems, striving to become a global leader in new energy automotive innovation. Looking Ahead Despite progress, challenges remain. Charging infrastructure, policy refinement, core technology breakthroughs, and after-sales services still need improvement. Minister Miao Wei outlined future priorities: strengthening coordination, promoting innovation, improving the policy environment, and enhancing openness. Academician Ouyang Minggao highlighted the importance of reducing energy consumption through lightweight design, low resistance, and efficient electric drive systems. He also emphasized the potential of intelligent charging and V2G microgrids for future energy systems. He envisioned a future where electric vehicles combine smart driving and intelligent charging, leveraging China’s advantages in the internet, photovoltaics, and electric vehicles to achieve a competitive edge.

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