China Smart Connected NEV Industry Plan Accelerates EV Market Growth

China Advances Smart Connected NEV Industry Roadmap

China smart connected NEV industry plan development is gaining momentum as the country’s industry regulator prepares to accelerate the drafting and release of the 15th Five-Year Plan for the smart, connected new energy vehicle sector. Auto stocks in Hong Kong moved higher after the announcement, with several electric vehicle manufacturers recording strong gains. Companies including Nio Inc, Xpeng, and other electric vehicle players benefited from increased investor confidence surrounding future technology policies and industry expansion.

Shares of major electric vehicle manufacturers showed significant movement following the regulatory announcement. Li Auto recorded the strongest gains among EV startups, while BYD, Geely Auto, Chery, and GAC Group also posted positive market performance. Other technology-focused automotive companies, including Xiaomi, Leapmotor, and Seres, experienced notable increases, reflecting market expectations that future policies will support intelligent vehicle development, advanced driving technologies, and broader adoption of connected mobility solutions.

China Targets Advanced Vehicle Technologies and Standards

Guo Shougang, head of the Ministry of Industry and Information Technology’s equipment industry department, stated that China will accelerate breakthroughs in key core technologies, strengthen major standards development, improve international coordination, and expand vehicle-road-cloud integration applications. The upcoming plan is expected to support smart connected vehicle deployment, production access improvements, and wider road testing programs across China. These initiatives indicate continued government focus on integrating artificial intelligence, connectivity, and automation into future transportation systems.

The adoption of advanced driver assistance technologies has continued increasing across China's passenger vehicle market. According to industry data shared during the announcement, Level 2 combined driving assistance systems have achieved a penetration rate of 70.5 percent among passenger vehicles this year, while navigation-on-autopilot features reached 34.2 percent adoption. The growing deployment of these technologies highlights increasing demand for intelligent vehicle platforms and provides opportunities for automotive suppliers developing sensors, software, connectivity systems, and autonomous driving solutions.

Autonomous Driving Testing and Deployment Expands

The first batch of Level 3 conditionally autonomous driving models has started operating on roads within designated areas in China. Authorities have issued more than 20,000 testing and demonstration license plates for smart connected vehicles, opened over 57,000 kilometers of testing roads, and recorded more than 220 million kilometers of cumulative testing mileage. These developments demonstrate China's large-scale approach toward validating autonomous driving technologies before broader commercial deployment.

The 2026 World Intelligent Connected Vehicle Conference will bring together government organizations, technology companies, and automotive industry stakeholders to discuss future mobility development. The event is co-hosted by the Ministry of Industry and Information Technology, the Ministry of Transport, and the Beijing Municipal People's Government. Battery manufacturers such as CATL and vehicle manufacturers are expected to remain important contributors as China continues building its smart connected and new energy vehicle ecosystem.

Frequently Asked Questions

What is China smart connected NEV industry plan?
The China smart connected NEV industry plan is a strategic roadmap designed to accelerate intelligent vehicle development, autonomous driving technologies, and connected mobility infrastructure across the automotive sector. The initiative focuses on advancing core technologies, establishing standards, expanding vehicle-road-cloud integration, and supporting future new energy vehicle growth. It also aims to strengthen testing programs and improve adoption of advanced driving features across passenger vehicles.