Workers are busy at a production line of the new energy vehicle AVATR at a workshop of Changan Auto in Jiangbei District, southwest China's Chongqing Municipality, July 20, 2023. (Photo/Xinhua)

Chongqing - China's government work report, unveiled Wednesday at this year's annual session of the National People's Congress for deliberation, pointed out that under the AI Plus initiative, China will work to effectively combine digital technologies with the country's manufacturing and market strengths.

The report emphasized that the country will support the extensive application of large-scale AI models and vigorously develop new-generation intelligent terminals and smart manufacturing equipment, including intelligent connected new-energy vehicles, AI-enabled phones and computers, and intelligent robots.

Intelligent connected new-energy vehicles have become a standout feature of "Made in China" in the global industrial landscape. Chongqing, along with other cities, is taking the lead in this emerging sector.

During the two ongoing sessions in China, NPC deputies and CPPCC National Committee members discussed the development path of intelligent, connected new-energy vehicles and offered suggestions to accelerate the city's progress in this industry.

Toward high-end development

In 2024, the added value of Chongqing's automotive industry grew by 26.7 percent year-on-year, contributing 66.7 percent to the growth of the city's industrial enterprises above the designated size. Among these, new energy vehicle sales reached 953,200 units, a year-on-year increase of 90.5 percent. The share of "Made in Chongqing" major new energy models priced above 200,000 yuan ($27,618.4) reached 48.3 percent, up 21.6 percent compared to the previous year.

Notably, Chongqing brands such as Avatr and Aito have established a high-end automotive brand image in consumers' minds, while leading technologies like intelligent connectivity have been cultivated.

Thanks to its outstanding performance in the new energy vehicle sector, "Made in Chongqing" cars have shed their previous "low-end" label and are rapidly advancing toward high-end development.

Zhang Xinghai, Founder of Seres Group and a CPPCC National Committee member, believes that Chongqing's intelligent, connected new-energy vehicles are moving toward the high-end market. This will continuously drive the upgrade of the automotive industry chain and push for the transformation of the traditional supply chain.

From upstream parts suppliers to downstream sales and after-sales service companies, all will benefit, effectively promoting the optimization of the regional industrial structure. Zhang said this will form an industrial cluster centered around intelligent connected new-energy vehicles, attracting high-quality enterprises and talent while enhancing Chongqing's position in the global industrial chain.

"Through the industry's high-end development, I hope Chongqing's automotive enterprises will build world-class car brands. At the same time, they should continue to strengthen technological innovation and pursue the high-quality route, shifting from product-driven to brand-driven, creating a brand image with distinct recognition and unique charm, and continuously improving brand awareness and reputation as they expand into the global market," he added.

Enhance innovation

Currently, the intelligent vehicle industry is rapidly evolving, with car manufacturers intensifying competition.

"Today's competition is no longer just about price war; it's about innovation capabilities," said a representative from Chongqing Municipal Commission of Economy and Information Technology.

In 2024, Chongqing's automotive industry research and development (R&D) investment intensity reached 3.1 percent, 1.3 percentage points higher than the national average.

With government support, Seres is integrating into the "33618" modern manufacturing cluster system, focused on the high-end intelligent connected new-energy vehicle sector, and using technological innovation to create landmark achievements, said Zhang, adding that Seres always prioritizes technological innovation and R&D, with rigid annual investment targets. R&D is the core driving force for Seres.

Through innovation-driven growth, Seres' revenue exceeded 140 billion yuan in 2024, with 426,900 new energy vehicles sold, a 183 percent increase. Aito entered the top tier of high-end brands, and the Aito M9 saw over 150,000 units delivered, becoming the best-selling luxury car in the domestic market priced at 500,000 yuan.

"This year, we will continue to increase our R&D investment, attract global automotive talent, cultivate core technologies, and build an efficient, agile, and collaborative innovation ecosystem. We will steadily promote technological and product innovation in high-end intelligent electric vehicles," Zhang said.

Accelerating overseas market database development

In 2024, Chongqing's automotive exports reached 477,000 units, a 29.6 percent year-on-year increase, with a value of 43.11 billion yuan, up 30 percent. Of these, 60,000 electric vehicles were exported, a 96.5 percent increase from the previous year.

Chongqing-made cars going global owes much to new energy vehicles. Take Changan Automobile, for example. In the Oceania car market, Changan has focused on promoting new energy vehicles locally to avoid competing in the traditional fuel-powered vehicle market dominated by Japanese brands.

"The pure electric Deepal S07 is our first model to enter the local market," said Xu Hao, senior manager of Changan Automobile's Asia-Pacific Region. Xu added that the pure electric Nevo E07 is expected to launch locally in June, followed by the pure electric and extended-range Deepal S05 in September.

However, challenges also arise in the process of Chongqing-made cars going global.

Zhu Huarong, NPC Deputy and Chairman of Changan Automobile, highlighted in his suggestions that the overseas market's policies, regulations, climate, environment, and road conditions present challenges for companies adapting to these diversities. Additionally, cultural, habits, and customs differences create challenges for companies to meet local user needs.

To address these challenges, Zhu suggested accelerating the development of a common fundamental database for the overseas automotive market, covering aspects like policies, regulations, climate, environment, road conditions, culture, habits, and customs. 

He encouraged participation from enterprises, research institutions, and government departments in building this database, creating a unified automotive common database platform for enterprises to quickly access. This would thereby accelerate the globalization of Chinese car manufacturers. At the same time, the common database would be leveraged to expand in-depth consulting services and provide timely warnings to automakers, helping them avoid risks.

Embrace future NEV trends

In Zhang's view, the future of new energy vehicles will have three features: firstly, the penetration rate of new energy vehicles in the overall automotive market will accelerate; secondly, the intelligent process, characterized by features like automative driver assistance and AI+, will accelerate, with a large number of core smart electric technologies quickly being integrated into vehicles, continuously enhancing user experience and driving safety; thirdly, Chinese brands will gain great technological influence and market dominance in the high-end automotive sector.

With these new features, Zhang believed that Chongqing's car manufacturers should embrace "three accelerations" to seize opportunities and prepare for the future: firstly, accelerate breakthroughs in core technologies, increase investment in independent R&D, deepen cross-industry collaboration, improve the level of intelligence, and enhance product quality.

Secondly, accelerate industry collaboration by building an industry-leading supply chain ecosystem to collectively produce high-quality vehicles for customers. In the era of intelligent connected new energy vehicles, even the most powerful companies cannot face all challenges alone. The development model must shift from a "chain-based" approach to an "ecosystem-based" integration.

Thirdly, accelerate the global expansion of the automotive market, build world-class car brands, and establish a new image of high-tech, high-quality cars globally. Market strategies should be tailored to the market needs and regulatory standards of different countries and regions, launching products that are popular among users and continuously increasing the market share and brand influence of "Made in Chongqing" on the international stage.

By 2025, Chongqing aims to produce 2.6 million vehicles, 1.3 million of which will be new-energy vehicles.

(Chongqing Daily contributed to this report.)