In 2024, China's production and sales of NEVs both exceeded 12 million units, solidifying the country's leading position in the global market. China has established a comprehensive industrial chain, supplying 70 percent of the world's battery materials and 60 percent of power batteries.

　　In recent years, the Chinese government has created a favorable development environment for the NEV market through policies and measures such as purchase subsidies, extensive charging infrastructure, and the construction of intelligent connected vehicle demonstration zones.

　　Data from the Ministry of Commerce showed that over 60 percent of vehicles purchased under the automobile replacement and renewal subsidy policy in 2024 were NEVs. As of Dec. 19, 2024, foreign brands accounted for more than 35 percent of the vehicles purchased through the policy.

　　The open-mindedness of Chinese consumers toward new technologies and innovation, coupled with their focus on intelligent networking technology, has created new avenues for reform and business opportunities for foreign car companies.

　　According to a Tesla salesperson in Changchun, northeast China's Jilin Province, in the past, customers paid more attention to cruising range and cost performance, but now they look at the intelligent configuration of vehicles, such as smart cockpits and automatic parking.

　　An increasing number of foreign car companies in China believe that developing new models tailored to the Chinese market is key to their future success. They are focusing on integrating smart driving, car networking and green solutions that align with the preferences and habits of Chinese consumers to achieve market breakthroughs.

　　Among them, Volkswagen Group signed a strategic cooperation agreement with China's First Automobile Works (FAW) in March to introduce 11 new models specifically tailored for the Chinese market, starting in 2026.