China has become the world’s largest and most vibrant market for new energy vehicles. Benefiting from the rapid development and progress of China’s new energy vehicle market, as well as its research, development, manufacturing capabilities, and related supporting industries, international automotive giants such as Mercedes-Benz, BMW, Audi, and others are deepening their cooperation with Chinese companies in the new energy vehicle industry chain.

With the accelerated integration of the global automotive supply chain, the new energy vehicle industry will enter a new cycle of innovation and iteration. Emerging formats and models represented by battery materials, battery structures, and innovative modes will further drive the industry's rapid development. Among them, Chinese companies’ supply chains possess global competitiveness, with advantages in production capacity, technology, cost, and customer base. It is expected that they will fully enjoy the growth dividends of the industry, with tremendous growth potential in the future.

China has been implementing the purchase tax exemption policy since 2014 to shore up the development of the NEV sector. In September 2022, it extended the preferential tax policy to the end of 2023.