China's thriving EV industry takes green innovation global

Gliding effortlessly through 1.6-meter deep water, an electric vehicle (EV) navigating the pool amazed onlookers with its impressive capabilities. Nearby, a flying car resembling a large drone hovered overhead, mesmerizing the crowd below.

These cutting-edge vehicles and technologies were showcased here at the 10-day Chengdu Motor Show 2024 in southwest China's Sichuan Province, drawing car enthusiasts from around the globe to experience the latest innovations.

"The development potential of China's EV market is unlimited," Mark Rainford, founder of the YouTube channel Inside China Auto, told Xinhua at the motor show. "There's no market anywhere in the world for EVs like China right now, and as those cars make their way to every corner of the world, they'll drive innovation there too by default."

SETTING SAIL FROM HOME

From Aug. 30 to Sept. 8, about 130 Chinese and foreign car companies participated in the motor show, displaying over 1,600 vehicles. On the opening day, 63 brand press conferences unveiled 73 new models, including 27 new models making their global debut.

These vehicles ranged from new energy-intelligent connected cars and plug-in hybrids to high-performance luxury sedans and striking concept cars. This diverse array of innovations provided a vivid snapshot of the Chinese automotive industry's exploration and vision for the future of mobility, presenting customers with a wide range of choices.

An Xpeng X2 flying car is on display during Chengdu Motor Show 2024 in Chengdu, southwest China's Sichuan Province, Aug. 30, 2024. (Xinhua/Tang Wenhao)

"Today's EVs are smarter, more economical, and eco-friendly. I'm considering buying one for my family. Plus, features like voice commands and in-car entertainment really make my kids happy," Ms Shuai, a visitor at the show, told Xinhua.

Shuai's decision reflects a broader trend among Chinese consumers. In July, the retail penetration rate of new energy vehicles (NEVs) in China exceeded 50 percent for the first time, reaching 51.1 percent. This milestone marks a shift in the Chinese automotive market, with NEVs officially surpassing traditional fuel-powered cars to become the new mainstream, signaling a new phase of industry development.

Today, both EVs and traditional fuel-powered cars are evolving toward greater digitization, connectivity, and intelligence. Noting that the NEV industry is at a pivotal stage of development, Lu Fang, CEO of Chinese NEV brand Voyah, said that the key transformation underway is "the shift from standard NEVs to intelligent, connected ones."

The leap in smart technology by Chinese automakers not only meets the demands of the domestic market but also paves the way for their expansion into international markets, said Kurt Bachmaier, vice president of sales and marketing of Magna Steyr, an automobile manufacturer based in Austria.

"The electrification of the Chinese auto market is now leading the world," said Kajikawa Shinya, vice president of GAC Toyota Motor Co., Ltd.

WORKING IN TANDEM

In 2023, China exported 4.91 million vehicles, marking a year-on-year growth of 57.9 percent. Among these, 1.203 million were NEVs, representing a 77.6 percent increase. This milestone establishes China as the world's largest automobile exporter for the first time, highlighting that China's NEVs are earning strong recognition both at home and abroad.

Talking about the advantages of Chinese NEVs in the global market, Qin Lihong, co-founder and president of Chinese EV maker NIO highlighted China's well-established supply chain and abundant engineering talent, enabling domestic companies to respond quickly to market demands. Additionally, Chinese NEVs excel in intelligence and user experience, making them highly competitive in the market.

According to statistics from the Thai Automotive Industry Association, in 2023, the total number of registered EVs in Thailand reached approximately 76,000, accounting for 12 percent of all vehicle registrations. Notably, Chinese brands dominated the top four positions, and eight of the top 10 spots were also held by Chinese brands.

From exporting complete vehicles to building factories and establishing a presence locally, bringing benefits to local communities, China's NEVs are venturing further.

This year, Chinese carmaker BYD's factory in Thailand, regarded as a key automotive production hub in Southeast Asia, was officially completed and began production on July 4, with an annual capacity of about 150,000 vehicles.

New energy vehicles are displayed at the inauguration ceremony of BYD's new plant in Rayong province, Thailand on July 4, 2024. (Xinhua/Sun Weitong)

Chinese automakers are leveraging their advanced technological expertise to establish factories and form joint ventures in Thailand, benefiting both the Thai people and the local automotive industry, said Suroj Sangsnit, vice president of the Electric Vehicle Association of Thailand.

Sangsnit noted that China's expansion into the Thai EV market not only provides Thai consumers with more choices but also brings advanced technologies, which will help Thailand establish a complete EV supply chain and create local jobs.

China's leadership in the EV market not only fosters production collaboration between local Thai automotive companies and Chinese manufacturers but also accelerates the growth of supply chain industries such as batteries and charging stations, supporting Thailand in building a full-fledged EV ecosystem, said Rachanida Nitipathanapirak, vice president of the Strategic Department at the Thailand Automotive Institute.

"We need to be more cautious and share the future potential rewards and risks with partners," said Qin, indicating NIO is not just focused on exporting products but is also actively seeking strategic partnerships and local production capabilities to enhance its presence in international markets.

To date, NIO has established 54 battery swap stations and 21 charging stations across five European countries -- Norway, Germany, Denmark, Sweden, and the Netherlands. Also, NIO leverages its four research and development centers in Europe, including the Research and Development (R&D) Innovation Center and the Design Center in Germany, to drive technological innovation and application, working in tandem with its domestic R&D centers to bring advanced technologies to market.

A staff member (L) introduces a NIO vehicle to a visitor at a NIO House in Berlin, capital of Germany, May 16, 2024. (Xinhua/Ren Pengfei)

"We would say, and we've been very consistent in arguing, that China's EVs could be beneficial for Europe. They could certainly be beneficial for the transition to e-mobility in Germany," said Michael Schumann, chairman of the Board of the German Federal Association for Economic Development and Foreign Trade.

Noting that competition would accelerate progress towards objectives and benefit both the automotive industry and consumers, reduce carbon emissions, and facilitate the transition to EVs, Schumann said Germany should learn from the success of Chinese EVs, and that both sides should strengthen cooperation.

INDUSTRY FOR FUTURE

Energy transition has become a global consensus, with major economies around the world committing to achieve carbon neutrality by the mid-21st century. As the negative impacts of global warming on the environment and society become increasingly evident, reducing the carbon footprint has become a shared responsibility for governments and international organizations alike.

NEVs, by reducing reliance on fossil fuels, directly lower greenhouse gas emissions, playing a crucial role in meeting the global temperature control targets set by the Paris Agreement, not to mention the European Green Deal and China's carbon neutrality goal.

The rise of EVs offers a promising path towards a more sustainable and environmentally friendly transportation system. By reducing emissions, decreasing pollution, and promoting renewable energy, NEVs play a crucial role in the global effort to combat climate change and protect the environment, said Schumann.

Currently, many African countries are introducing policies to support green transitions and actively building related infrastructure, creating favorable conditions for the adoption of NEVs. For instance, the Egyptian government has implemented a zero tariff policy on EVs to boost sales, while the number of charging stations in the country has multiplied in recent years.

Similarly, Indonesia has rolled out various policies in recent years to encourage the development of EVs, guiding the automotive industry toward new energy solutions. Chinese automakers have actively expanded their presence in the Indonesian market, steadily increasing their market share.

This photo taken on Feb. 15, 2024 shows a vehicle on display at the booth of Chinese automaker Wuling during the Indonesia International Motor Show 2024 at Jakarta International Expo in Jakarta, Indonesia. (Xinhua/Zulkarnain)

Developing the new energy industry and promoting green, low-carbon transitions are common goals shared by countries around the world. Only by collaboratively advancing the construction of a global green production and supply chain can people achieve an optimal global capacity structure and enhance the overall impact of global green development.

"The export of Chinese electric vehicles will drive healthy competition worldwide, promote industry advancement and cost reduction, and ultimately improve the overall trajectory of the industry," said Herbert Diess, chairman of the supervisory board of Infineon Technologies AG, Germany's largest semiconductor manufacturer.

"We must commend China for its leadership in decarbonization industries. It is an inspiration and a path that we must follow," former Assistant Secretary-General of the United Nations Brice Lalonde said.