During a press conference held on October 23, the State Council Information Office shared insights on the development of the industrial and information sectors in the first three quarters of 2024. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology, reported that the overall performance of China’s automotive industry remains robust. The industry’s added value increased by 7.9% year-on-year, with production and sales reaching 21.47 million and 21.57 million vehicles, respectively, reflecting year-on-year growth of 1.9% and 2.4%. Notably, vehicle exports reached 4.312 million units, marking a significant 27.3% increase.

Zhao emphasized that the automotive sector has maintained steady growth, with revenue and total profit in the industry rising by 3.2% and 3% year-on-year, respectively, for the period from January to August. The new energy vehicle sector shows a particularly promising trend, achieving production and sales figures of 8.316 million and 8.32 million units in the first three quarters, indicating increases of 31.7% and 32.5%, respectively. In the last three months, sales of new energy passenger vehicles consistently accounted for over 50% of total sales, marking a significant breakthrough. Additionally, 928,000 new energy vehicles were exported, up by 12.5% compared to last year.

However, Zhao stressed the need to recognize the challenges facing the automotive industry, including insufficient domestic demand and increased uncertainties in overseas exports. He outlined the Ministry’s plans to enhance policy support to promote high-quality industrial development.

Firstly, he mentioned the implementation of various measures to boost automobile consumption. This includes policies for trade-ins of old vehicles, tax incentives for car purchases, and the continuation of initiatives that promote new energy vehicles in rural areas. There will also be a pilot program to fully electrify public sector vehicles and the development of guidelines for battery swapping models in new energy automobiles.

Secondly, there will be an optimization of the vehicle production access management policy. The Ministry aims to introduce a regulation on motor vehicle production access to establish a dynamic management mechanism and to implement self-inspection for vehicle product access. This will help stimulate the vitality of businesses and support group management in enterprises, encouraging quality improvements and competitiveness while fostering a positive ecological environment for industry development.

Thirdly, Zhao highlighted the importance of supporting technological innovation. By utilizing channels such as high-quality development initiatives and national key research plans, the Ministry will continue to promote breakthroughs in critical technologies, including key materials for power batteries and automotive chips. There will also be initiatives to conduct pilot programs for the access and road use of intelligent connected vehicles and to promote the industrialization of autonomous driving technologies.

Finally, Zhao discussed strategies to better serve the international expansion of automotive companies. This involves addressing trade barriers such as countervailing investigations and high tariffs, providing more support and convenience for automotive enterprises venturing abroad, and strengthening the connection and alignment of standards in areas like autonomous driving and carbon accounting to create a favorable growth environment.