While other countries were not optimistic about new energy vehicles, we invested in their research and development. Therefore, we have a time advantage in both technological advancement and overall scientific research, giving China more development possibilities. my country's new energy vehicles utilize lithium batteries, resulting in more standardized application processes. However, China's time advantage in new energy vehicle development has led to increasing prejudice in some areas.
The global new energy vehicle market will continue to maintain a high growth rate over the next 5 to 10 years. It is projected that by 2025, the market size will exceed 12 million vehicles, maintaining an average annual growth rate of approximately 35%. China and the European Union will continue to be the main drivers of global new energy vehicle growth, while the US market will also become a new growth point, with sales expected to exceed 1 million vehicles this year or next. A three-way competitive landscape for the new energy vehicle market, comprised of China, Europe, and the US, will gradually take shape.
First, we must prioritize energy efficiency. This is also the core of national scientific and technological innovation, and energy efficiency means reducing carbon emissions—this is one aspect. According to a report released by the China Automotive Technology and Research Center and data from regulatory platforms, companies like BYD have performed exceptionally well in the area of energy efficiency in new energy vehicles, leading the new global trend in energy efficiency. Second, how do we achieve green energy? This involves integrating transportation and energy, integrating new energy vehicles and energy, and integrating transportation assets with energy. Third, the entire lifecycle of automobiles, including vehicle production, parts production, final use, and recycling, especially the green recycling of new energy vehicle power batteries, is also essential for development and a very useful approach.
Product advantages are becoming increasingly prominent. my country's new energy vehicle products are showing a trend of "both ends driving a comprehensive breakthrough in the middle," and Chinese automakers are leveraging the transformation towards new energy vehicles to achieve brand upgrades. Microcars are now largely electrified; for example, the Wuling Hongguang has monthly sales exceeding 30,000 units. High-end vehicles are gradually being dominated by electrified products, continuously increasing their appeal to consumers. Key breakthroughs are being made in core technologies. The "three electrics" technologies—batteries, motors, and electronic controls—are constantly improving. Power batteries have largely solved key issues such as range, safety, and lifespan, with core indicators such as energy density continuously improving and their compatibility with the overall vehicle product becoming increasingly better.
my country's new energy vehicle products are showing a trend of "both ends driving a comprehensive breakthrough in the middle," with Chinese automakers leveraging the transformation towards new energy vehicles to achieve brand upgrades. While the development of my country's new energy vehicle industry is promising, key concerns such as battery safety, driving range, fast charging, and cost remain unresolved. This points the way for the upstream power battery technology and industrial development. Developing power batteries that combine high energy density, ultra-safety, fast charging, long cycle life, and low cost is the goal of the lithium battery industry and the key to ultimately gaining global dominance in the power battery market.
The continuous advancement of technology is for better development, and this is no exception in its application. The West has led the direction of automobile development for a century, and now, with the emergence of new energy vehicles in China, there are new improvements. In any case, these are all manifestations of my country's development advantages, so people have more confidence in China's development. Energy development and the sustainability of many energy sources are issues that must be considered in current applications. Since we cannot sustainably develop unusable resources, we need to find development models that leverage resource advantages, and new energy vehicles are a concrete example of this.
To further accelerate the modernization of the new energy vehicle industry chain and supply chain, we will comprehensively utilize various policy resources and continuously promote the better use of the Industrial Internet to enhance the modernization of the new energy vehicle industry chain and supply chain. While focusing on domestic independent research and development, we will facilitate international cooperation channels and mechanisms, creating a favorable environment for open cooperation and R&D innovation. We will promote in-depth international cooperation in areas where my country is weak, such as chips and operating systems, and expand the breadth of cooperation in areas where my country excels, such as complete vehicles and batteries, further enhancing the international competitiveness of all links.
