According to the Zhitong Finance APP, IDC recently predicted the 2025 market based on the latest trends in the Technology industry and the recent development of the China Autos market. It mentions that as high-pressure fast-charging technology progresses from 4C to 4C+ and half-solid state Batteries achieve mass production, the shortfall in Energy supplements for Electric Vehicles is gradually being addressed. The development of Battery management technology has expanded the design freedom of Battery packs, giving manufacturers greater innovative space to solve issues related to Battery life and working conditions. IDC predicts that by 2025, the market scale of Electric Vehicles in the China Autos market will approach 14 million units.

Insight 1: The attributes of Mobility services are becoming more pronounced, with smart driving driving innovation in the Autos market's business model.

In China, under the backdrop of the Passenger Vehicle market entering the era of ownership, the model of providing services based on a single vehicle identification number for consumers will gradually transform, as manufacturers begin to offer services based on the owner’s lifestyle circle. The development of smart driving accumulates further potential for this transformation. In the first half of 2024, Luobo Kuai Pao transitioned from regional demonstration to urban-level application in Wuhan, in October, Tesla heavily promoted its autonomous driving fleet business at a conference, and in November, Pony.ai was listed on the Nasdaq. Major domestic dealer groups are also shifting from traditional luxury car brands to technologically robust new car-making forces, injecting new momentum into the development of the Mobility fleet business on the business model level.

Insight 2: The coverage of high-level driving assistance function scenarios is expanding, with smart driving functions demonstrating high user stickiness.

As the areas covered by urban high-level driving assistance functions continue to expand, fragmented scenarios where driving assistance functions were mature—such as highways, ring roads, and parking lots—are gradually being integrated, continuously enhancing the completeness of advanced driving assistance functions. Observing user behavior data shows that mature driving assistance function systems have formed high user stickiness; once users start to use these, they tend to turn on the function as much as possible. This will accelerate the coverage of autonomous driving algorithms in edge scenarios and enable further development of existing high-level driving assistance functions.

Insight 3: The proportion of Electric Vehicles continues to rise, with the application of Battery technology becoming increasingly flexible and diversified.

With the advancement of high-pressure fast charging technology from 4C to 4C+ and the mass production of semi-solid state batteries, the shortcomings in the energy supplement of Electric Vehicles are gradually being addressed. The development of Battery management technology has expanded the design freedom of battery packs, allowing manufacturers greater innovation space in solving issues related to battery life and operating conditions. Resources have also been appropriately allocated for the battery research and development of plug-in hybrids and extended-range electric vehicles among major power battery manufacturers. IDC predicts that by 2025, the market size of Electric Vehicles in China's automotive market will approach 14 million units.

Insight Four: The share of Plug-in Hybrid Electric Vehicles in Electric Vehicles will continue to rise.

As an important stage of electrification in the auto market, plug-in hybrid vehicles will continue to contribute the most prominent growth rate to the Electric Vehicles market in 2025, with their share in the Electric Vehicles segment continuing to increase. The iteration of the chassis Control System is rapidly bridging the functional and handling gaps between RBOB Gasoline vehicles and Electric Vehicles, making it smoother for gasoline vehicle users to transition to the Electric Vehicles market.

Insight Five: Range-extended electric vehicles will explore richer sub-markets.

Range-extended electric vehicles, firmly occupying the high-end SUV market, are subtly influencing consumers in China's Passenger Vehicle market while also proving the feasibility of the range-extended power mode in terms of technology. Brands such as Xpeng and IM have planned to launch range-extended models in 2025, and this power mode will secure a place across a wider variety of body shapes and price ranges.

Insight Six: Technological elements in the pure electric market continue to rise, expanding the influence of Internet Plus-Related companies.

The fierce competition among Electric Vehicle manufacturers not only leads to market consolidation around leading companies but is also dynamically shaping the usage scenarios for pure electric models. The strong entry of technology manufacturers adds new variables to the potential development directions of the auto market: Xiaomi Motors has made a good start in the 0.2 million level sedan market and has announced plans to enter the SUV market in 2025; Huawei will further improve its layout of the Wenjie series based on the Zhijie, Xiangjie, and Zunjie models. Consumer perspectives on vehicle use will continue to change, and the transformation of cars from mere transportation tools to spaces for travel will proceed.

Insight Seven: The impact of rear-seat audio-visual experiences on consumer car purchase decisions will continue to grow.

The long-term development of scenarios for electric vehicles is affected by various factors, including the commercialization process of Solid State Battery technology, the establishment of charging and swapping systems, and the coverage of public transport infrastructure for citizen travel scenarios, as well as the reshaping of user travel needs by remote communication applications. The development of scenarios like mobile office and remote Education is increasingly diminishing the rigidity of travel demands, shifting user needs from drivers to passengers. From working in the car to children watching movies inside, the rear-seat audio-visual experience will be given more consideration in the consumer's car purchase process. The impact of this factor is not limited to the design of the second-row screen but is also influenced by aspects like rear-seat space and seat comfort.

Insight Eight: Innovative multimodal interaction scenarios, centered around voice interaction.

The integration of motion recognition and voice interaction in the cockpit marks the initial completion of the transformation of human-computer interaction from information transmission to intelligent perception. The vehicle's ability to collect information in the cockpit is evolving from voice, facial recognition, and gestures to more complex dimensions like emotions and health conditions. The multimodal system is further developing around voice interaction to meet the diverse needs of segmented user groups more thoroughly. IDC data shows that the penetration rate of voice interaction features in China's passenger vehicle market approached 85% in 2023, and multimodal interaction will promote deeper development of interaction modes based on a wide coverage of functions.

Insight Nine: The eVTOL sector shows promising development trends in low-altitude airspace.

Multiple automotive companies, including traditional manufacturers and new forces, showcased their plans for the eVTOL field at the 2024 Guangzhou Auto Show. As one of the carriers of the low-altitude economy, eVTOL is expected to achieve multi-city pilot operations by 2025, allowing early exploration of integrated road and low-altitude transport. As one of the elements of future transportation, eVTOL will further enrich the consumer travel ecosystem and increase touchpoints between travel scenarios and consumers.

Insight Ten: Overseas expansion strengthens supply chain resilience.

Following China's automotive export volume ranking first globally in 2023, Chinese automotive manufacturers have engaged in more diversified overseas strategies, which include not only complete vehicle exports but also parts exports, overseas factory construction, and brand development.mergers and acquisitions.Furthermore, deep cooperation is being established with a network of Dealers worldwide. By 2025, more overseas manufacturers are expected to begin production successively, continuing to push for further internationalization of the entire supply chain system and creating a stronger collaborative effect between domestic and international markets.