China’s automotive market grew further in 2024, driven by record EV adoption, aggressive vehicle price wars, and strong policy support. Government subsidies and stricter emissions rules accelerated the transition to EVs, while automakers like BYD and Tesla slashed prices, making cars more affordable. For example, the government is offering a nationwide trade-in subsidy of up to RMB 20,000 (about USD 2,750) to consumers who replace old vehicles with new electric cars.
Consumers favoured smart, connected vehicles, with homegrown EV brands like NIO and XPeng leading in AI-driven features. For example, NIO’s NOMI is an in-car AI assistant that uses natural language processing, facial recognition, and emotion detection to personalize settings, control vehicle functions, and even engage in conversational interactions. NIO recently upgraded Nomi with GPT-powered capabilities for more intuitive, context-aware responses and encyclopaedic knowledge. Meanwhile, surging exports increased China’s dominance in many car markets around the globe.
China's passenger vehicle (PV) sales grew by 2.1% year-over-year in 2024, according to Counterpoint’s Global Passenger Vehicle Model Sales Tracker. Out of these, almost 85% of the cars sold feature embedded cellular connectivity. China is expected to achieve 100% connectivity penetration in PVs in its home market by 2028, surpassing all other markets. This leap in connectivity has been driven by growing consumer demand for features like real-time navigation, remote diagnostics, advanced infotainment, and enhanced safety systems, which manufacturers are racing to incorporate into their vehicles.
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