Regulating the New Forces: A Call for Enhanced Oversight in the New Energy Vehicle Industry

New Energy Regulations Require Serious Attention!

On September 24, the Ministry of Industry and Information Technology (MIIT) announced via its official website that the draft for the Mandatory National Standard for Automotive Door Handle Safety Technical Requirements and three other mandatory national standard amendments has been completed and is currently open for public opinion. This means that the hidden automotive door handles, often referred to as “death traps,” will undergo comprehensive rectifications. Since the spring of 2025, the new energy vehicle (NEV) industry has experienced one of the most intense regulatory storms in history.

On March 28, the MIIT released the Safety Requirements for Power Batteries Used in Electric Vehicles, which has been labeled as the “strictest battery safety regulation ever.” This new standard mandates that manufacturers ensure their power batteries do not catch fire or explode after thermal runaway—a lifelong commitment. On April 16, a meeting was held by the MIIT’s Equipment Industry Department, where it was emphasized that automotive manufacturers must refrain from exaggerated and false advertising and must clearly define the functional boundaries of the intelligent driving assistance systems. On June 9, the MIIT issued a notice regarding the supervision of consistency in production for road motor vehicle manufacturers and products for 2025, specifically addressing issues such as battery safety and exaggerated range claims in NEVs. In September, the MIIT sought public feedback on the Safety Requirements for Combined Driving Assistance Systems for Intelligent Connected Vehicles and the aforementioned door handle safety standards. Within a mere five months, a series of regulatory policies were implemented, covering multiple key areas of NEV safety.

The underlying logic of this regulatory storm is evident. The MIIT’s unusually frequent release of targeted regulatory policies is driven by a clear factor: the NEV market has grown significantly. Data indicates that from January to August 2025, China’s NEV production reached 9.382 million units, a year-on-year increase of 31.4%, with a cumulative penetration rate of 45%. According to the China Passenger Car Association, the retail market scale for narrow-bodied passenger vehicles in September is expected to reach approximately 2.15 million units, reflecting a month-on-month increase of 6.5% and a year-on-year increase of 2.0%. Among these, NEV retail sales are projected to be around 1.25 million units, with the penetration rate likely climbing to 58.1%, setting a new historical record. This signifies that NEVs have transitioned from an early market to a mainstream market, necessitating an upgrade in safety standards.

However, this “NEV regulatory storm” must adhere to the natural laws of a storm itself. A storm is a meteorological term describing a weather system characterized by strong winds or heavy precipitation. A unique phenomenon accompanies storms; for instance, after a tropical storm forms, there exists a high wind-speed area surrounding the eye of the storm, where wind speeds can reach 100 meters per second (358 kilometers per hour), while the eye itself remains relatively calm. Indeed, the MIIT serves as the “eye of the storm” in this regulatory upheaval—while the entire NEV market is tumultuous, the MIIT remains calm and collected. What we observe as a regulatory storm is merely a systematic shift from passive response to proactive defense.

For example, according to statistics from the China Society of Automotive Engineers, in 2024, battery thermal runaway incidents accounted for 67% of NEV fire incidents, while secondary accidents caused by bottom impacts accounted for 23% of the total. Consequently, the new battery safety regulations set to be implemented in April 2025 elevated the requirement of “no fire or explosion” from a recommendation to a mandatory standard, particularly introducing “bottom impact testing.” This new regulation constructs a safety protection system that encompasses mechanical, chemical, and electrical dimensions through a dual upgrade of “technical standards + testing scenarios.” This transition reflects a fundamental change in regulatory thinking, advocating that we should focus on “effectiveness over advertising.”

Moreover, a certain new car manufacturer reported a total of 11 charging self-ignition incidents in 2024, but conventional inspections only triggered responses after the eighth incident. Clearly, the “lagging nature” of the traditional sampling inspection system has been completely exposed in this case. Thus, a new screening mechanism involving “public opinion big data + hazard modeling” was introduced in the June 2025 production consistency checks. This new mechanism, incorporating real-time data from the national NEV monitoring platform, has improved regulatory response speed by 300%. This shift signifies a transition in regulatory thinking from merely “solving problems” when they arise to striving to identify and eliminate issues at their root through early warning mechanisms, even incorporating public engagement.

Additionally, data indicates that around 55% of accidents involving Level 2 intelligent driving assistance occur on highways, with over half stemming from driver misuse or abuse of the system. As a result, the safety requirements draft for combined driving assistance systems released in September strictly limits the “operational design conditions” of the system. To prevent accidents caused by driver misuse or abuse of the combined driving assistance system, the standard mandates that the system must be capable of detecting hand and line-of-sight disengagement while activated. This transition illustrates a shift in regulatory thinking from emergency measures for sudden issues to a systematic design integrating “data recording + status monitoring + function disabling,” aiming to establish a balance between technological innovation and safety ethics.

As the saying goes, “A cool eye looks at the world while a warm wind blows rain across the river.” Clearly, regulatory authorities possess the capability to perceive the essence of emerging phenomena, directly addressing critical issues and clarifying a comprehensive approach to solving problems at their roots. We believe these changes stem from the grand ambitions of China’s NEV sector.

As the cumulative penetration rate of NEVs in China nears 50% from January to August 2025, the number of defect recalls has surged by 212% year-on-year during the same period. This indicates that high penetration rates have significantly brought about high risks and complaints. This phenomenon is particularly pronounced in the power battery sector. Data from the power battery industry reveals that the iteration speed of fast-charging technology exceeds 150% annually, far surpassing the 80% annual improvement rate of material systems. This discrepancy has led to a surge in complaints regarding excessive battery capacity degradation after 300 fast charges. Therefore, the tightening of regulations also serves as a direct response to the “inward competition” within the industry.

Yet, isn’t curbing “inward competition” essential for better engaging in “external battles”? From January to August 2025, China’s NEV exports have performed exceptionally well, further driving the continuous growth of NEV production. The NEV industry is accelerating its global expansion, focusing on the “Belt and Road” market. Along the Belt and Road, Chinese NEV companies adopt differentiated strategies based on local market characteristics. For instance, they promote small vehicles in Southeast Asia, leverage EU member status to avoid tariffs in Eastern Europe, and advocate hybrid models in the Russian market to adapt to low-temperature environments. However, regardless of how products align with the market and application scenarios, any safety issue related to products could impact not only a single enterprise but also the reputation and sustainable development of “Made in China.” Take, for example, the latest draft for the door handle regulations, which creatively integrates mechanical redundancy (60mm×20mm×25mm operational space) with electrification needs. On September 17, Tesla’s design director, Franz von Holzhausen, stated in an interview that Tesla is redesigning its controversial door handle system. This redesign aims to enable passengers to operate the door more intuitively in “emergency situations.” This improvement addresses regulatory concerns regarding the safety of Tesla’s door system.

In fact, industry forecasts suggest that the redesign costs will only account for 1.2% of the total door cost, yet it enhances rescue efficiency by 40%. However, Chinese policies not only impact Tesla but are also influencing global manufacturing. According to the National Standardization Administration, as of February this year, China has led the formulation of seven international standards for NEVs. The innovative indicators born from this regulatory upgrade, such as “thermal runaway three-dimensional protection” and “fast charging cycle validation,” are being transformed into global standard proposals through the ISO/TC22 channels. Thus, the tightening of regulatory policies further solidifies our position as the global leader in the NEV sector, both from a market perspective and, more importantly, from a regulatory and standards standpoint.

Based on this, whether for Chinese users or global users, there should be anticipation for the effectiveness of this regulatory storm, and applause should be given for it. Perhaps, it will mark the beginning of a “quality leadership” era for the Chinese NEV industry. As former Minister of Industry and Information Technology, Miao Wei, stated in his book Striving to Overtake: The Chinese Solution for Intelligent Connected Vehicles, China’s leading position in NEVs relies on “changing lanes in racing,” but sustaining that lead after changing lanes is the real test. Perhaps this regulatory storm will also facilitate the transition of China’s NEVs from product export to standard export.