China is steering its auto industry toward Intelligent Connected Vehicles, aiming to generate 1 trillion yuan in consumption by 2027. Consequently, authorities are prioritizing these vehicles to shift the market from sheer volume to tailored supply models.
The Ministry of Industry and Information Technology introduced a plan emphasizing precise alignment between supply and demand. Specifically, the roadmap calls for 100 signature products, support for innovative enterprises, and pilot programs for new technologies in Intelligent Connected Vehicles. Furthermore, expanding rural sales of new energy vehicles is part of the plan.
Vice Minister Xie Yuansheng described the initiative as a transition from quantity to quality. He added that production should now meet diverse consumer needs, rather than just basic transportation.
This policy push coincides with a milestone in China’s new energy vehicle sector. For example, new energy vehicles accounted for 51.6 percent of all new car sales in October 2025. Moreover, production rose from about 1.4 million units in 2020 to more than 13 million units in 2024.
Consumer preferences are diversifying alongside this growth. In particular, families increasingly demand multi-purpose, spacious vehicles, while younger buyers prefer smart cockpits with voice interaction. At the same time, outdoor enthusiasts are fueling interest in electric off-road vehicles with long-range and steep-slope capabilities.
Domestic manufacturers are implementing precision strategies to meet these evolving demands. For instance, Leapmotor targets younger buyers with its Lafa5 compact coupe. Meanwhile, Zeekr integrates AI and advanced sensors into its 9X model. Similarly, Nio expands energy services with over 8,400 battery-swap and charging stations worldwide.
The Ministry of Commerce also seeks to expand the used car market and aftermarket services, including rentals and recreational vehicles, in order to increase domestic consumption.
Fu Bingfeng, executive vice president of the China Association of Automobile Manufacturers, said industrial applications of Intelligent Connected Vehicles will unlock broader market potential. Additionally, he stressed that innovative supply strategies will drive future growth.
Overall, Intelligent Connected Vehicles are transforming China’s automotive sector. Therefore, the government expects this strategy to link technology, consumer demand, and sustainable mobility growth.
