Cui Dongshu: Cars to Evolve into Durable Electronics, with Tech Innovation Replacing Luxury Concept

At the 4th Future Mobility Pioneers Conference, Cui Dongshu, Secretary-General of the China Passenger Car Association, stated in his speech that China's automotive industry is accelerating its shift from "trading market access for technology" to "exchanging technology for market share." Independent R&D, mastery of core technologies, overseas brand expansion, and global leadership have become defining characteristics. As electrification and intelligent connectivity deepen, vehicles are transforming from traditional mechanical products into durable electronic consumer goods—and under AI-driven evolution, they will eventually become cognitive intelligent agents. Cui emphasized that intelligent cockpits—not autonomous driving—will become the core determinant of user experience and product appeal. With technological innovation replacing historical brand prestige, the foundational positioning of traditional luxury cars is eroding. He predicts the term "luxury car" will eventually disappear, replaced solely by technology-based premium classifications. Chinese automakers, he added, will follow in the footsteps of China’s home appliances and smartphones, going global through smart electrification and achieving large-scale expansion. Data shows that China’s auto sales reached 26.19 million units in 2025, with new energy vehicle (NEV) penetration hitting 61% in April and domestic brands accounting for 80% of total sales. In exports, NEVs from Chinese brands represent 50% of total volume, and among exported premium models, 94% are NEVs. Price ranges have significantly widened: A0-segment vehicles start around RMB 50,000, while C-segment and premium SUVs range from RMB 300,000 to RMB 800,000—a six- to seven-fold difference—primarily driven by variations in intelligent cockpit experiences. Cui also noted that global annual vehicle sales currently stand at approximately 90 million units, far below theoretical demand, mainly because most of the world’s population still cannot afford cars. Chinese automakers already hold 60% and 70% global market shares in battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), respectively, and dominate NEV adoption across segments: 80% electrification in the A0 segment and 66% in the C segment. Development cycles have shortened from four years to just one, enabled by AI-driven parallel development and rapid iteration. He revised his forecast for China’s domestic auto market in 2025 downward—from an initial projection of a 1% decline to an 11% drop—but raised his export growth expectation from 18% to 50%. Despite overall market pressure, high-income consumers continue to support premium demand, with domestic brands capturing significant share in the above-RMB-300,000 price bracket. Cui stressed that, powered by AI, software-defined vehicles, and data-driven innovation, China’s auto industry could reach annual production exceeding 50 million units—accounting for over 50% of global output—and emerge as a pivotal force driving China’s manufacturing sector onto the global stage.