The new energy vehicle industry has broad room for development, and Chinese and foreign automakers need to deepen their collaboration through complementary strengths, sharing resources, and addressing risks collectively, industry representatives said at a recent congress.

"The global NEV market is steadily growing. We should take the opportunity to expand opening-up, encourage domestic and foreign automakers to deepen cooperation, and jointly build an open, inclusive, cooperative and integrated development for the industry," said Wan Gang, president of the China Association for Science and Technology. He was speaking at the World New Energy Vehicle Congress in late September in Haikou, Hainan province.

In the first half of 2025, global NEV sales reached a new high, exceeding 9.75 million units with a year-on-year growth of 31.3 percent, accounting for 21.4 percent of total vehicle sales, said Wan, who is also the president of the congress.

China led the market with 6.94 million units sold, up 40.3 percent year-on-year and with a 44.3 percent penetration rate. Meanwhile, Europe's NEV market recovered with a 24.7 percent year-on-year growth. The United States' market maintained its growth with a 4.1 percent increase. The three major markets have demonstrated the momentum of the global NEV industry.

NEV sales are expected to reach 16 million units in China this year, accounting for half of total auto sales, Zhu Huarong, chairman of China Changan Auto Group, predicted at the congress. By 2030, the global penetration of NEVs is expected to increase from 25 percent in 2025 to 40 percent, he said.

Over two-thirds of German automakers plan to continue investing in China, focusing on R&D, production and marketing, said Hildegard Mueller, president of German Association of the Automotive Industry.

She said at the congress that China and Germany's auto industries have complementary strengths, and deepened cooperation can accelerate innovation and achieve a "one plus one is greater than two" effect.

German automakers excel in safety standards, while Chinese stand out in large-scale market application, rapid product iteration and charging infrastructure — this complementarity creates favorable conditions for electrification transition, Mueller said.

China's digitalization in the NEV sector presents advantages, offering opportunities for co-creation, said Jochen Goller, BMW's board member responsible for customer, brand, and sales at the congress.

BMW has also partnered with Chinese firms like Momenta to develop advanced driving assistance systems, and collaborates with tech companies including Huawei and Tencent to build in-vehicle intelligent systems, digital ecosystems and app stores.

Oliver Thoene, a member of the board of management of Mercedes-Benz, stated that Mercedes not only maintains cooperation with Chinese automakers such as BAIC, but seeks cross-border cooperation with tech firms and startups, including partnering with Huawei to explore intelligent connected vehicles.

Volkswagen China brought together three of its brands — Volkswagen, Audi, and Porsche — at the congress' exhibition to showcase the newest achievements in electrification and intelligent connectivity.

Porsche launched a new-generation infotainment system tailored for China at the exhibition.

Shanghai-based SAIC Motor is advancing the renewal of its joint-venture brands, having signed an extended cooperation agreement with Volkswagen to co-develop new products. It also partnered with Audi to build a new electric architecture and launch the latest technologies, Wang Xiaoqiu, chairman of SAIC, said at the congress.

Facing diversified development of NEVs, he stressed that Chinese and foreign auto enterprises should learn from each other, openly cooperate and oppose decoupling, jointly tackle challenges such as high-power charging, battery swapping, and vehicle to grid technology, unify standards for charging interfaces and communication protocols to reduce compliance costs, and establish a fair benefit-sharing mechanism for all players along the industry chain.

China has strong competitive advantages in terms of supply chain transformation, cost advantages, and economies of scale, said Wang Xiaojuan, director of the institute for external cooperation at Geely.

She highlighted using technology as a bridge for broader cooperation with European car manufacturers to help them accelerate electrification and adopt intelligent technologies.

Officials attending the WNEVC also revealed supportive measures for the sector. Xiong Jijun, vice-minister of industry and information technology, said China will optimize policies such as the NEV purchase tax, advance the "NEVs Going to the Countryside" campaign, and regulate industry competition to maintain a fair, orderly market environment.

Efforts will be made to accelerate breakthroughs in technologies such as high-performance chips, operating systems, large language AI models, and new batteries to enhance the momentum of industrial development, Xiong added.

The NEV industry faces challenges including the low-temperature adaptability and safety, the construction of charging and battery swapping networks lagging behind some regions, and international protectionism and unilateralism disrupting the stability of global industry and supply chains, he said.

caoyingying@chinadaily.com.cn