The latest data released by the China Association of Automobile Manufacturers shows that in October, the monthly sales of new energy vehicles reached 1.715 million units, an increase of 20% year-on-year. The monthly sales accounted for 51.6% of the total monthly sales of new vehicles, surpassing 50% for the first time. This indicates that in China, the substitution of new energy vehicles for traditional fuel vehicles has entered a new stage.

The share of new energy vehicle sales has exceeded half for the first time, conveying three messages.

Firstly, there has been a continuous supply of new passenger vehicle models and continuous upgrades in product technology. Since this year, domestic passenger vehicle enterprises have accelerated the pace of technological iterations in electrification and intelligence. 800-volt silicon carbide platforms, long-range extended-range/parallel hybrid, end-to-end combination assistance driving from parking to parking, AI large model intelligent cabins... have been implemented on most mainstream models of major car manufacturers. Efficient, low-cost R&D, supply chain and intelligent manufacturing systems have provided strong guarantees for the intensive launch of new models. According to incomplete statistics, within one week from September 15th to 21st this year, 16 new energy passenger vehicles were launched. Under the continuous promotion of new vehicle effects, the sales share of new energy passenger vehicles in China steadily increased to 54.9% in October.

Secondly, the electrification process of commercial vehicles has accelerated.

Data shows that in 2024, the sales share of new energy commercial vehicles will be 14.9%; from January to October this year, this proportion has rapidly increased to 20.7%. The popularity of new energy commercial vehicles is inseparable from the continuous strengthening of policy "punches". Since this year, the scope and intensity of subsidies for the scrapping and renewal of old operating diesel trucks have been further expanded. In addition, the improvement in range due to technological breakthroughs, the popularization of ultra-fast charging technology, and the decline in battery costs have made the operational cost advantages of new energy commercial vehicles more obvious. The continuous construction of charging networks and the gradual improvement of charging and swapping station layouts provide strong support for the development of new energy commercial vehicles.

Thirdly, the monthly sales of new energy vehicles have exceeded those of fuel vehicles for the first time, posing new and higher requirements for the electrification and intelligence transformation of the automotive industry.

In the context of artificial intelligence accelerating the empowerment of the entire automotive industry chain, innovating and exploring the product form, manufacturing process, operation mode, competitive dimension and even development model of the AI automotive era, China's global leading advantages in the transformation of automotive electrification and intelligence can be continuously consolidated. Currently, the automotive industry is full of vitality, while continuously strengthening the market selection and elimination mechanism, effectively curbing "internal competition" and eliminating vicious competition, and breaking the "increased output and income without increased profit" vicious circle, the industry can achieve high-quality development.

Comprehensively improving safety standards is even more urgent. More than half of new vehicles have been electrified, and the penetration rate of combined assistance driving new vehicles exceeds 60%. This has raised the attention of the entire society to the safety of new energy vehicles. Improving the safety standards of motor vehicles, eliminating the breeding ground for potential safety hazards at the source, relevant departments of the state have taken actions. Since this year, the Ministry of Industry and Information Technology, the Ministry of Transport and other departments have successively organized the formulation of a series of mandatory national standards and draft standards for public consultation (hereinafter referred to as "new standards"), clearly stipulating that each time the combined assistance driving function is activated, the driver must have received relevant training, and real-time monitoring of the driver's hands on the steering wheel and whether the driver's gaze deviates from the road during driving. In response to the safety hazards exposed in traffic accidents, the "new standards" also propose mandatory requirements such as having to be equipped with physical buttons, zero-gravity seats must ensure that the seat belt effectively protects the occupants, hidden door handles need to be equipped with mechanical release functions, the thickness of emergency window glass cannot exceed 5mm, and the zero-to-hundred acceleration must not be lower than 5 seconds. We look forward to seeing more enterprises focusing their innovation efforts on addressing real consumer pain points such as preventing battery overheating, enhancing the safety of integrated assisted driving systems, and completely eliminating range anxiety. They will shift from "competing on acceleration, configuration, and price" to "competing on safety, technology, value, and experience", thus promoting the stable and long-term development of China's new energy vehicle industry.