The Central Economic Work Conference was held in Beijing from December 10th to 11th. The meeting summarized the economic work in 2025, analyzed the current economic situation, and arranged the economic work for 2026. Among the eight key tasks deployed, six are closely related to the automotive industry.

 

Adhere to the principle of domestic demand taking the lead and build a strong domestic market

 

We will further implement the special campaign to boost consumption

 

Expand the supply of high-quality goods and services

 

Optimize the implementation of the "two new" policies

 

Clear up unreasonable restrictive measures in the consumption field

 

Interpreting the "national subsidy" is undoubtedly the biggest driver of auto consumption this year, enabling local governments, automakers and dealers to work in concert. The simultaneous implementation of "local subsidies" and "factory subsidies" has further ignited the craze for car consumption. Data shows that from January to November, China's auto sales reached 31.127 million units, up 11.4% year-on-year. Among them, 14.78 million new energy vehicles were sold, up 31.2% year-on-year, and it is expected to reach a new high for the whole year.

 

In 2026, the "two new" policies will be further upgraded and optimized, providing a "reassuring pill" to the market. New solutions to consumption obstacles such as traffic restrictions and purchase restrictions are also expected, bringing about growth.

 

2. Adhere to innovation-driven development and accelerate the cultivation and expansion of new growth drivers

 

Carry out a new round of high-quality development actions for key industrial chains

 

Deepen and expand "Artificial Intelligence Plus", and improve artificial intelligence governance

 

In the first three quarters of this year, the sales volume of new passenger vehicles with combined driver assistance system (L2) in China increased by 21.2% year-on-year, and the penetration rate reached 64%. The intelligent driving function has become a selling point of new models and an important consideration for consumers when making a purchase.

 

China has the market environment and policy soil for the development of the "Artificial Intelligence +" industrial chain. According to relevant plans, by 2027, intelligent connected vehicles will enter the trillion-yuan consumption field. After the large-scale implementation of "vehicle-road-cloud integration", not only will the intelligent connected vehicle industry chain experience significant development, but related industries, including the transformation of transportation infrastructure and urban traffic governance, will also be driven.

 

3. Persist in reform and breakthroughs to enhance the impetus and vitality for high-quality development

 

Intensify the rectification of "involution" competition

 

Formulate and implement plans for further deepening the reform of state-owned assets and state-owned enterprises

 

Improve the supporting laws, regulations and policies of the Law on Promoting the Private Economy

 

Step up efforts to clear overdue payments to enterprises

 

Interpreting "involution" competition as a "roadblock" to the high-quality development of the industry, it not only leads to a decline in industry profits in the short term, but also affects technological innovation and product quality in the long run, weakening competitiveness. This year, the competent authorities have repeatedly strengthened constraints and supervision over disorderly competition, exaggerated promotion and overly long payment terms in the industry, creating a favorable industrial ecosystem.

 

At present, the reform of state-owned auto enterprises has entered a deep-water zone. It is necessary to accelerate the pace of electrification, cultivate and expand the intelligent connected business, and actively seek transformation. Meanwhile, some backward state-owned auto enterprises should face up to their own shortcomings, be good at leveraging external high-quality resources to enhance their competitiveness, and seek new impetus and vitality.

 

4. Adhere to opening up to the outside world and promote win-win cooperation in multiple fields

 

Encourage and support service exports, and actively develop digital trade and green trade

 

Improve the comprehensive overseas service system

 

Promote high-quality development of the Belt and Road Initiative

 

From January to November, China's auto exports reached 6.343 million units, up 18.7% year-on-year. It is expected that the total exports for the whole year will exceed 7 million units. Compared with the same period in 2021, the export scale has increased by more than three times. Chinese auto parts have also shone brightly globally. In the first three quarters of this year, China's auto parts export value reached 71.83 billion US dollars, up 4.5% year-on-year. Among them, the "going global" process of component enterprises in the "three-electricity" systems and intelligent driving fields is constantly accelerating.

 

China's auto exports are evolving from a single product export to an ecological export featuring capacity export, technology export and industrial chain collaboration. The green and intelligent "Chinese solution" is reshaping the global automotive industry development pattern through diversified "going global" paths.

 

5. Adhere to coordinated development and promote integration between urban and rural areas as well as regional interaction

 

We should promote the urbanization construction with county towns as important carriers and the all-round revitalization of rural areas in a coordinated manner
Looking back on the past few years, the promotion of new energy vehicles in rural areas in China has achieved remarkable results. The sales volume has increased from 400,000 units in 2020 to 7.6 million units in 2024, with a growth rate significantly higher than that of the urban market. As the growth rate of new energy vehicles in cities slows down, many automakers are investing more resources in county and rural markets.

 

The growth of consumption in the county and township auto markets is of great significance for the popularization of new energy vehicles, which helps to promote the transformation of China's consumption structure and facilitate sustainable consumption growth. In addition to developing more compatible products, the charging network and supporting services such as insurance and credit should also be simultaneously extended to the grassroots level to build a green, low-carbon, intelligent and safe travel system for county and rural residents.

 

6. Adhere to the guidance of "dual carbon" goals and promote comprehensive green transformation

 

We will further promote energy conservation and carbon reduction renovations in key industries

 

Accelerate the construction of a new energy system and expand the application of green electricity

 

Strengthen the construction of the national carbon emissions trading market

 

The automotive industry is an important player in implementing the "dual carbon" goals. Facing increasingly strict global trade green barriers, the "dual carbon" goals have also brought opportunities for Chinese automakers to shift gears and improve quality.

 

Looking ahead to the "15th Five-Year Plan" period, the automotive industry should pay more attention to the coordinated low-carbonization at the material end and make early plans when promoting the green and low-carbon transformation of the industrial chain. At the same time, efforts should be accelerated to formulate carbon footprint standards for new energy vehicles and power batteries, promote international mutual recognition of accounting methods and results, and lay a solid foundation for global development.

 

Originally published on China Automotive News Network on December 15, 2025