China’s automotive industry is poised for significant transformation as the government outlines a strategic plan focusing on intelligent connected new energy vehicles (NEVs). Released in early September by the Industry and Information Technology Ministry alongside eight other departments, the development blueprint covers the 15th Five-Year Plan period from 2026 to 2030. The plan aims to reinforce China’s leading position in the global automobile market by advancing breakthroughs in core technologies and expanding the intelligent connected NEV sector.
According to the plan, intelligent connected NEVs will play a central role in upgrading the country’s automobile industry, representing a key area of innovation driven by the booming artificial intelligence landscape. These vehicles are viewed as essential to developing a modern industrial system and are seen as new, high-quality productive forces capable of reshaping the automotive sector’s competitive edge.
China has already demonstrated substantial progress in the automotive market. In 2025, the nation produced 34.53 million vehicles and sold 34.4 million units, marking increases of 10.4% and 9.4% compared to the prior year. The industry has maintained production and sales above 30 million units annually for three years and has held the world’s top position for 17 consecutive years. Notably, NEVs accounted for nearly 16.63 million units produced and 16.49 million units sold in 2025, leading the global market for 11 straight years.
A significant factor driving this growth is the large-scale integration of intelligent connected technologies into new vehicles. During the first three quarters of 2025, 64% of newly sold passenger cars in China featured Level 2 (L2) combined driver-assistance systems, a figure that increased to 70% in 2026. Furthermore, more than 30% of automobile models now offer navigation-assisted driving functions, reflecting rapid adoption of advanced automation features.
One of the most notable developments is the transition of Level 3 (L3) conditional autonomous driving technology from closed-road testing to commercial use, signaling the accelerating industrialization of intelligent connected vehicles. This shift underscores the sector’s move from experimental stages toward widespread deployment, highlighting the government’s commitment to fostering technological innovation as a foundation for future growth.
Overall, the Chinese government’s plan sets ambitious targets to strengthen the country’s leadership in the intelligent connected NEV industry, which is expected to be a cornerstone in the broader effort to modernize the nation’s industrial base and automotive capabilities by 2030.