Electric Vehicle Industry Embraces Smart Upgrades and New Development Patterns Amid Dual Circulation Strategy

Science and Technology Daily: The Electric Vehicle Industry’s Intelligent Upgrade and the New Development Pattern Brought by “Dual Circulation”

On May 20, during the 2021 China (Wuxi) Electric Vehicle Industry Development Conference and the 15th China Wuxi International New Energy Electric Vehicle Exhibition, Zhou Wendong, the Secretary of the Xishan District Committee of Wuxi City, stated, “With the spillover of new energy vehicle technology, the mandatory certification for electric bicycles, the enforcement of new national standards, and a surge in overseas demand, intelligence and digitization are becoming key areas for development. Particularly, as technology applications evolve and old products are replaced on a large scale while exports continue to expand, companies are entering a period of significant development opportunities.”

Gao Yanmin, Director of the Consumer Goods Department of the Ministry of Industry and Information Technology, emphasized that the electric vehicle industry is at a critical juncture for development. With the construction of the new “dual circulation” development pattern, the electric vehicle industry is expected to play an increasingly important role in boosting domestic consumption and increasing exports. “In particular, the national policies for ‘six guarantees and six stabilizations’ have proposed constructing a new development pattern based on ‘dual circulation.’ These measures are strategic deployments aimed at advancing our open economy to a higher level amidst significant changes in both domestic and international environments. Therefore, the electric vehicle industry must seize this historical opportunity, focus on meeting the people’s needs for a better life, actively engage in ‘dual carbon’ actions, and innovate across the entire industry chain in areas such as industrial structure, growth methods, and production processes, thus promoting ongoing innovation, transformation, openness, and progress to achieve high-quality industrial development,” said Yao Jingyuan, a special researcher at the State Council’s Counsellors’ Office.

Deng Xue, General Manager of the Research Department at Zhongjing Company, pointed out that the national planning and innovation pathways for reducing emissions from passenger vehicles are very clear, transitioning gradually from policy-driven (subsidies) to market demand-driven models. “It can be said that China’s new energy passenger vehicle sector is in the early stage of explosive growth. Currently, the industry shows a development pattern where new players lead, traditional automakers gradually increase their efforts, and internet companies enter the market. In the future, leading companies will stand out more prominently, and industry concentration will accelerate. The manufacturing technology for electric vehicles has a low threshold and lighter assets; therefore, the industry remains relatively fragmented. However, due to the upgrade in consumer demand, an upward trend in concentration is already observable,” said Deng. He added that in the future, companies with strong brands, scale, and especially core technologies will capture a larger market share.

Gao Yanmin suggested that the electric vehicle industry should leverage digitalization, networking, and intelligent methods to enhance management efficiency, increase product innovation capacity, and gradually achieve green and low-carbon development. Additionally, it is important to continue implementing the “three-product” initiative—enhancing product variety, improving quality, and creating brands. Companies should focus on meeting the people’s needs for a better life by deeply exploring and expanding niche markets, continuously developing high-end or cost-effective products to further meet the diverse needs of the market.

Notably, Wuxi’s Xishan District has become a leader in the development of the electric vehicle industry after years of meticulous cultivation. Currently, it is home to 190 complete vehicle manufacturing companies and 450 supporting enterprises, forming a collaborative industrial chain that includes components such as controllers, shock absorbers, frames, motors, hubs, and plastic parts. The annual production of complete vehicles exceeds 14 million, accounting for 40% of the national electric vehicle output. In the first quarter of this year, the electric vehicle industry cluster in the district achieved operating revenue of 8.878 billion yuan, a year-on-year increase of 108.3%.

“We are steadfast in implementing an innovation-driven core strategy and a dominant strategy for industrial strength, vigorously attracting advanced high-end projects, and building innovative cooperation platforms. We continue to implement the ‘strengthen chain, supplement chain, and extend chain’ projects, gathering a number of innovative brand enterprises to create a strong market competitive advantage,” Zhou Wendong stated.

Moving forward, Xishan aims to seize new development opportunities by following the strategy of “industrial clusters + specialized parks” and formulating targeted support policies. The district will strongly support leading enterprises in enhancing resource integration and technological advancement across key links of the industrial chain, striving to cultivate globally competitive and leading “chain master enterprises.” This will enhance control over the industrial and supply chains, promote the development of key areas such as vehicle integration, motors, batteries, and electronic control systems, and create a complete and high-end industrial map, fostering an industrial community that is “progressive, orderly, and ecologically sound.” By the end of the “14th Five-Year Plan,” the scale of the industrial cluster is expected to exceed 100 billion yuan.