The Central Economic Work Conference, convened in Beijing from December 11 to 12, stands as a pivotal event for shaping China's economic policies. At a critical moment characterized by the global industrial chain's restructuring and China's own economic transformation and upgrading, the conference put forward the policy of "pursuing progress while upholding stability, and enhancing quality and efficiency." This policy will fundamentally redefine the development path of China's automotive industry, exerting a profound influence on its growth trajectory and policy landscape.

Firstly, it calls for accelerating the strategic shift of the automotive industry from "scale expansion" to a "quality leap."

For over a decade, China has held the title of the world's largest automotive producer and market. However, challenges such as overcapacity and intense internal competition have left the industry vast but lacking in strength. The conference placed "fostering high-quality development" at its core and advocated for "leading the construction of a modern industrial system through technological innovation." This directive directly tackles the long-standing issues plaguing the automotive sector. Analysts predict that with the implementation of various relevant policies in the coming year, the pace of mergers and acquisitions within the domestic automotive industry will quicken, while the momentum of mere scale expansion will be curbed. This will encourage the industry to prioritize high-quality development.

Secondly, it aims to further break the vicious cycle of "internal competition" within the automotive sector.

The conference emphasized the need for strengthened regulation and standardized market behavior. It underscored the importance of regulating and guiding the healthy development of capital in accordance with legal frameworks. This foreshadows a significant crackdown on vicious competition in the automotive industry. Following the introduction of measures by relevant ministries to combat such competition, on December 12, the State Administration for Market Regulation unveiled the "Guidelines for Compliance with Pricing Behavior in the Automotive Industry (Draft for Comment)" to solicit public feedback. The objective is to standardize regulatory rules, clarify legal boundaries, and guide automotive production and sales enterprises to operate within legal confines.

Thirdly, it continues to promote policies aimed at expanding automotive consumption and unlocking its full potential.

The conference proposed adhering to a growth model led by domestic demand and building a robust domestic market. It stressed the implementation of targeted measures to stimulate consumption and the formulation and execution of plans to increase the incomes of urban and rural residents. Furthermore, it called for an expansion in the supply of high-quality goods and services, optimizing the implementation of the "Two Updates" policies, and eliminating unreasonable restrictions in the consumption sector to unleash the potential of service consumption. The "Two Updates" policies encompass a new round of large-scale equipment upgrades and consumer goods trade-ins. The consumer goods trade-in policy is particularly instrumental in continuing to expand automotive consumption.

Relevant statistics reveal that as of October 22 this year, over 10 million applications for automotive trade-in subsidies have been submitted nationwide, enhancing consumers' willingness to purchase vehicles and significantly boosting domestic automotive consumption. The conference's proposal to eliminate unreasonable restrictions in the consumption sector includes lifting vehicle purchase restrictions in certain cities, a measure conducive to expanding automotive consumption.

Fourthly, it seeks to further expand the consumption of new energy vehicles (NEVs).

The automotive industry plays a pivotal role in reducing carbon dioxide emissions. The conference proposed adhering to the "dual carbon" goals and promoting a comprehensive green transition. This initiative provides sustained momentum for the development of domestic NEVs. This year marks the culmination of the "14th Five-Year Plan," during which China's automotive industry has undergone a rigorous test amidst a three-year pandemic and achieved rapid growth, particularly in NEVs and automotive exports. However, it is crucial to acknowledge that the vicious "internal competition" within the automotive industry persists, with domestic automotive companies experiencing increased production but stagnant revenue growth, and domestic automotive consumption still falling short of expectations. Some issues remain quite acute.

The 2025 Central Economic Work Conference has charted a course for the automotive industry's development in 2026. Only by adhering to innovation-driven growth, deepening reform and opening up, and balancing development and safety can China seize the initiative in the global automotive industry transformation and achieve sustainable and stable development. (End)