China has built the most comprehensive supply chain in the world.
By the end of 2025, both the production and sales volumes of automobiles in China exceeded 34 million units, reaching new historical highs, according to data released on Wednesday by the China Association of Automobile Manufacturers (CAAM).
According to the data, last year, the production and sales of new energy vehicles (NEV) amounted to 16.626 million and 16.49 million units, respectively.
China maintains its status as the world's largest automotive market. The penetration of new energy vehicles continues to grow, and the pace of intelligent transformation is steadily accelerating. On the other hand, more companies are feeling very real and sustained pressure: selling more does not necessarily mean earning more. In some cases, the more cars are sold, the harder it becomes to make a profit. Price competition is intensifying, industry profitability is constantly shrinking, and corporate investments continue to rise — while payback periods are becoming longer. Terms such as "involution," "anti-involution," and "qualitative development" are no longer just fashionable words in industry discussions; they have become an inevitable reality.
It is against this backdrop that the period of the "15th Five-Year Plan" is mentioned more frequently.
But the key question remains: what does the 15th Five-Year Plan actually mean for China's automotive industry? Does it signify the beginning of a new growth cycle — or the onset of a deeper, structural restructuring of the entire industry?
Experts from the Gasgoo Automotive Institute point out that the automotive industry in China is at an exceptionally important historical moment. Over the past ten years, the industry has undergone profound and rapid transformations:
In terms of market scale, China has ranked first in the world for many years, and total sales are expected to reach a new record.
In terms of technological directions, electrification and intelligence are advancing at the forefront of the global automotive industry, increasingly setting the pace rather than merely following it.
In terms of the industrial system, China has built the most comprehensive automotive supply chain in the world — which is also the fastest in response and adaptation.
However, as the industry enters the period of the 15th Five-Year Plan, the key question it faces is changing. The focus is shifting — from whether it is possible to produce and sell cars, to whether the industry can ensure long-term, healthy, and sustainable development. At the same time, the center of gravity is moving beyond domestic competition to a new phase defined by global competition and cooperation.
High-quality development has ceased to be just a slogan for the Chinese automotive industry. It has become a concrete requirement, jointly shaped by political direction, regulatory pressure, and market dynamics.
Against this backdrop, several trends are simultaneously unfolding:
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The growth of the domestic market is slowing down, and the industry is entering a phase of structural restructuring.
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The penetration of new energy vehicles continues to grow, but competition is noticeably intensifying.
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Clear signals of "anti-involution" are emerging, accompanied by tightening and more sustained regulatory oversight.
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Going global has become a common consensus, even amid growing uncertainty in the global environment.
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AI and software are deeply integrated, transforming automotive products and redefining the boundaries of the automotive industry.
Thus, the period of the "15th Five-Year Plan" is not a continuation of the previous growth logic. It represents a phase of systemic restructuring for the Chinese automotive industry.
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