China's NEV industry shifts gears for global growth

Automechanika Shanghai 2025 opened this week with more than 7,000 exhibitors from around the world, strengthening its focus on new-energy technologies. The NEV section is 50 percent larger in this edition, highlighting advances in electrification, smart mobility and green transportation.

Across the exhibition halls, one message is clear: China's new-energy vehicle industry continues to gain momentum.

More than 2,000 Chinese and international companies are showcasing NEV innovations — from electric-drive systems and high-performance components to hydrogen fuel cells, charging and battery-swap technologies and new materials. Together, they demonstrate a supply chain that is increasingly mature, specialized and globally competitive.

Major auto suppliers from Japan, Germany and other traditional auto hubs are also stepping up their presence in China as the industry shifts toward electrification.

Wada Mitsuharu, general manager of Aisin Shanghai Trading Co. Ltd., told CGTN that China remains one of the company's most important markets.

"Building on our original equipment-level (OE) quality, we will continue strengthening our EV-related businesses," he said. "We operate certified service centers across all provinces in China and remain committed to providing reliable, high-quality services to customers."

Beyond major global automakers expanding their footprint in China, a central theme at this year's show is the rapid global expansion of China's auto supply chain. More Chinese suppliers are moving overseas, boosting their own growth while contributing to the worldwide shift toward electric and intelligent mobility.

Guan Mingyu, senior partner at McKinsey & Company and an expert on the automotive industry, said China's major auto players are accelerating progress in innovation, cost management, product quality and capital efficiency as they compete with traditional Western carmakers. He added that by 2030, the EV sector will undergo significant changes, with China's technological advancements and emerging standards expected to expand globally and help build localized supply chains across multiple regions.

"Our upstream and downstream partners are now spread across the world, particularly in new-energy businesses across India, Europe and the United States," Ying Hongliang, vice-president of Shanghai Edrive Co.,Ltd. told CGTN. "We are also looking for suppliers who can support our localized production needs in these markets. In fact, we stopped being a 'domestic-only' company many years ago. For example, when we worked with India's Tata, we set up a plant right next to theirs — bringing our entire supply chain with us."

China's NEV market continues to expand rapidly. According to the China Association of Automobile Manufacturers, the country sold 1.7 million NEVs in October, accounting for 51.6 percent of all new car sales. That means one in every two new cars sold in China is a new-energy vehicle — a milestone that underscores China's role as the world's most dynamic NEV market.