Ouyang Minggao Proposes Five New Models of Production Relations Driven by the NEV Productivity Revolution

On April 11, Academician Ouyang Minggao of the Chinese Academy of Sciences stated at the High-Level Forum on Intelligent and Electric Vehicle Development that the productivity revolution in new energy vehicles (NEVs) will drive adjustments in production relations. He reviewed the historical shifts in the global automotive industry’s center: from Europe to the United States, driven by Ford’s introduction of assembly-line manufacturing; and from the U.S. to Japan, closely tied to Toyota’s lean production system. He believes China’s emergence as the global automotive hub will similarly be accompanied by transformations in industrial models, value chain restructuring, and changes in production methods. Ouyang outlined five emerging models of production relation transformation: First is the vertical integration model led by electrification, centered on full electrification, empowered by intelligence, and leveraging global markets to achieve economies of scale and cost advantages, thereby integrating technology chains, industrial chains, and value chains. Second is the dual-engine model of domestic brands, simultaneously developing both internal combustion engine (ICE) vehicles and electric vehicles (EVs), as well as domestic and international markets. Relying on deep-rooted manufacturing capabilities and market experience, this model coordinates positioning across both tracks. In the coming years, ICE vehicles may evolve toward high-capacity hybrid electric vehicles (HEVs), while NEVs will advance toward pure battery-electric vehicles. Third is the internet-driven new entrant model, which blends internet thinking, smart-device-oriented marketing, and user-centric ecosystems. Electrification serves as the gateway to intelligence, and these companies may eventually shift from vehicle manufacturing to mobility services, expanding horizontally into embodied intelligence domains such as autonomous vehicles, drones, and humanoid robots. Fourth is the value-chain-oriented horizontal integration model, focusing on intelligence and brand marketing. It promotes cross-manufacturer brand alliances led by non-traditional automakers and explores resource integration pathways centered on battery swapping and vehicle-energy convergence to maximize asset value. Fifth is the state-owned enterprise (SOE) model combining independent development with joint-venture reform and transformation. Through institutional and systemic reforms, it enhances market competitiveness, leverages the holistic strengths and cross-sector synergies of state-owned automakers, and combines the stability of state-backed “mainstream forces” with the innovative dynamism of emerging players to advance mergers, reorganizations, and integrated development.