In a recent interview, Wan Gang, honorary president of the China Association for Science and Technology and former minister of science and technology, reflected on China’s rise as a global leader in new energy vehicles (NEVs) and outlined the challenges and opportunities ahead for the industry. Wan, who played a key role as chief scientist of the national EV initiative under the 863 Program, traced China’s strategy back to three fundamental concerns at the turn of the century: growing dependence on imported oil, worsening urban air pollution, and the risk of technological reliance on foreign automakers.
Today, NEVs—encompassing pure electric, plug-in hybrid, and fuel-cell vehicles—make up a significant majority of China’s new car market. In July 2026, NEVs accounted for 60.4 percent of new vehicle sales, with total sales reaching 9 million units in the first seven months of the year, marking a nearly 10 percent increase compared to the previous year. Globally, China is responsible for nearly three-quarters of electric vehicle production, according to the International Energy Agency, and nearly two-thirds of global EV sales, as estimated by BloombergNEF.
China’s success stems from a diversified approach to electric mobility, with early investments in pure electric, hybrid, and fuel-cell technologies supported by extensive research, infrastructure development, and market cultivation. The transition from subsidy-driven growth to market-oriented competition has been facilitated by the falling cost of batteries and manufacturing efficiencies. Nearly 70 percent of battery-electric vehicles sold in China in 2025 were cheaper than comparable internal combustion models before incentives. Additionally, China commands over 80 percent of global battery cell production, with prices significantly lower than in North America and Europe.
Despite these achievements, Wan emphasized that the industry faces new challenges, including intensified competition and slowing profit margins, which fell to 1.5 percent in the first five months of 2026. He highlighted industry anxiety as a driver of "involution-style" competition and urged automakers to focus on clear market segmentation, improved customer service, and product quality rather than volume expansion alone. The Chinese government has responded by tightening regulations on disorderly pricing and encouraging competition based on technology and value.
Looking ahead, Wan stressed the importance of expanding overseas through localized production and better after-sales and marketing networks, particularly in Southeast Asian markets such as Thailand and Indonesia. He noted that trade barriers and industrial policies are encouraging Chinese manufacturers to establish local operations to better serve regional customers.
On technology development, Wan projects that pure electric vehicles will eventually represent about 65 to 70 percent of the combined pure EV and plug-in hybrid market, with plug-in hybrids maintaining a significant share. He expressed caution regarding all-solid-state batteries, expecting commercial-scale production around 2030 contingent on overcoming technical and economic challenges. Wan also sees a continued role for hydrogen fuel cells in commercial vehicles and highlights intelligent connected vehicles as a key future direction.
Twenty-five years after China’s major EV program began, Wan underscored that the focus has shifted from establishing global competitiveness to improving product quality, fostering sustainable competition, and strengthening international market presence. He envisions China’s NEV industry as a "collaborator, pioneer, and leader" in the global transition to cleaner mobility, while promoting openness to foreign investment and innovation within the domestic market.