As 2025 concludes China’s 14th Five-Year Plan, the auto sector has achieved breakthroughs in electrification, intelligence, and global expansion. This solidifies its leading global position. NEV market penetration has exceeded 50%, while domestic brands hold a steady 65% share of the passenger vehicle market. Leaders like BYD, Geely, Changan, and Chery are consolidating advantages through rapid tech iteration and stronger product appeal. Large AI models are integrating into vehicles. Features like city NOA and AI-powered smart cockpits are moving toward industrialization. Achieving intelligence parity between ICE and EVs is a key direction for global automakers. Accessible automotive technology is becoming a decisive factor for consumers.
Industry boundaries are blurring. Mainstream automakers are staking out high-relevance sectors like flying cars and humanoid robots. They are exploring technology transfer and a second growth curve. Meanwhile, China’s auto exports maintain robust growth. Global competitiveness is steadily improving, opening broader horizons for industrial development.
Looking to the 15th Five-Year Plan, the auto industry is entering a new multi-dimensional elevation stage. Technology is shifting from “driving assistance” to “full-domain intelligence.” The market is moving from “product export” to “ecological rooting.” Value creation is pivoting from “manufacturing profits” to “full-cycle services.” Competitive rules are transitioning from “scale competition” to “normative cooperation.” Against this backdrop, Gasgoo Automotive Institute hosted a themed salon titled “Smart Mobility Without Boundaries, Deep Global Integration: Multi-Dimensional Competition and Value Reshaping in China’s Auto Industry.” Executives from OEMs and ecosystem firms, plus technology and strategy experts, attended. They engaged in in-depth discussions on industrial trends and development paths.
Auto Industry Enters High-Quality Development Phase in 15th Five-Year Plan
Tina Zhou, CEO of Gasgoo, noted that the automotive sector is a pillar industry with an output value of about 12 trillion yuan. High-quality development is critical amid global economic pressure. While the industry maintains scale growth, companies face squeezed profits and intensified competition. Structural adjustment challenges persist. The next five years will see accelerated consolidation. This places higher demands on corporate systemic capabilities, global layout, and organizational resilience.
Industry boundaries are expanding as automobiles integrate with AI, new technologies, and diverse scenarios. Smart cockpits, robots, and aircraft are key innovation directions. Smart electrification is entering a second cycle. Competition is shifting from single-point technologies to systemic co-creation. High-quality development emphasizes product quality and market validation. Policy focuses on curbing hypercompetition and strengthening regulation. This ensures healthy industrial growth, pushing the sector from a manufacturing powerhouse to a technology and global operations powerhouse.
Domestic substitution of core technologies, industrial safety, and supply chain resilience upgrades will become dominant themes. Industrial cluster divisions will clear up. Globalization will pivot from simple exports to localized operations and institutional openness. Gasgoo Automotive Institute will leverage industry connectivity and upgraded AI capabilities. It will refine research methodology and strengthen data collection. The aim is to build a global automotive industry think tank platform over the next five years.
Tina Zhou | CEO, Gasgoo
2026 Passenger Vehicle Market: Breaking Through the Zero-Sum Game
The global economic recovery presents a divergent landscape. Developing nations are maintaining rapid growth. Markets in the Middle East, Southeast Asia, and Africa offer structural opportunities for Chinese auto exports due to friendly policies. Conversely, developed economies are under pressure. Rising trade protectionism, tariffs, and compliance requirements are increasing costs for Chinese automakers. China’s domestic market shows simultaneous volume and price increases. NEV penetration has exceeded 50%. Export scale leads the world. Domestic brands’ market share approaches 70%. The industry is shifting from scale-based competition to full-system rivalry.
Dong Jing, a market analyst at Gasgoo Automotive Institute, noted that industry revenue will grow in 2025. However, profit margins remain low with significant divergence among companies. Domestic sales are hitting new highs, driven by policies, hit models, and product upgrades. Trade-in programs serve as a key driving factor. Export volume is approaching 6 million units. The NEV share is continuously rising. Europe and the Middle East are main sources of incremental growth. Market growth is concentrated in entry-level and mainstream NEV models. The high-end market exhibits structural growth.
Looking to 2026, breaking through the market relies on refined overseas operations and powertrain optimization. BEV growth is slowing. Extended-range vehicles are becoming the primary source of incremental volume. Space for high-end NEV segments continues to expand. Domestically, brands are expected to increase market share. Leading enterprises will consolidate advantages through scale, technology, and global capabilities. This will drive a continuous rise in industry concentration.
Dong Jing | Market Analyst, Gasgoo Automotive Institute
Special Discussion on Market Hotspots
During the special discussion on market hotspots, guests from the core supply chain and research institutions exchanged views. China’s auto industry is entering market normalization and high-quality growth. They discussed the overall characteristics of the 2026 passenger vehicle market. Topics included market trends and key focal points for mainstream automakers.
Attendees explored the evolutionary path of the Chinese auto industry’s globalization. Discussions focused on progressing from “going global” and “going deep” to “moving up the value chain.” Combining experience with observations, guests shared understanding of global shifts and industrial logic. The atmosphere was lively and interactive.
AI Empowerment: The Endgame of Automotive Intelligence and Model Innovation
Wang Xianbin, partner and VP of the Gasgoo Institute, noted that attention on driver assistance systems is rising. L2 and above features are standard on nearly 60% of vehicles. Yet user awareness of functional boundaries remains insufficient. Safety trust needs improvement. Penetration in highway and urban scenarios is increasing. Features like memory parking are trickling down to mainstream models. Cockpit preferences are diverging. Multi-screen interaction, voice experience, and seat comfort remain core concerns. Younger demographics accept new technology more readily. The overall market is still “competing on specs and stacking hardware.” Industry concentration is low. Widespread adoption of smart cockpits will take time.
AI application presents a diverse landscape. Internet giants, tech firms, and OEM self-research run in parallel. AI is permeating R&D, testing, autonomous driving, and cockpit ecosystems. Through cloud and on-board synergy, data closed-loops and simulation applications are maturing. New forms like cockpit Agents and AI Boxes are being explored. Cockpit and driving integration is advancing cautiously due to cost constraints. AI demonstrates value in marketing, showroom experiences, and quality control. It is extending into chassis and battery sectors. AI is driving chassis control from on-board perception to cloud-road collaboration. It unleashes potential in charging and energy management. Vehicles will accelerate into “super mobile intelligent physical terminals.” Business models and scenarios will expand around mobility services and data value.
Wang Xianbin | Partner and Vice President, Gasgoo
Special Discussion on Intelligentization Hotspots
During the intelligentization hotspots discussion, guests from tech companies and ecosystem partners engaged in deep exchanges. The focus was “AI-Defined Cars.” Drawing on experience, guests explored AI’s impact on user mindsets and decision-making logic. Topics included user experience evolution and technical boundaries. They exchanged views on supply chain reconstruction and opportunities amid cross-industry integration.
Focusing on vehicles evolving into “super mobile intelligent physical terminals,” guests discussed software and data coordination. The conversation focused on service model innovation and business model reshaping. Insights were shared on extending automotive service value. The on-site discussion was spirited. Differing perspectives enriched understanding of automotive intelligence paths. It provided inspiration for future collaboration and innovation.
The “Smart Mobility Without Boundaries, Deep Global Integration” salon concluded successfully. Gasgoo Automotive Institute hosted the event amid in-depth exchange. The forum built consensus on industrial trends, market evolution, and intelligent transformation. It provided multi-dimensional paths for the auto sector’s high-quality development. Looking ahead, Gasgoo will link upstream and downstream sectors. It will work with partners to forge ahead through change. The goal is jointly driving China’s auto industry toward a new era of resilience and value.
