At the "How to Ensure the Steady and Long-term Progress of China's Innovation Model?" forum during the 17th Annual Meeting of the New Champions, also known as the 2026 Summer Davos Forum in Dalian, GAC GROUP Chairman Feng Xingya delivered a speech.

Reflecting on the most impactful innovations of the past three decades, Feng highlighted the development of China's intelligent connected and new energy vehicles (NEVs) as the most representative. The journey has evolved from initial joint ventures and product introductions to China now commanding nearly 70% of the global NEV market, based on last year's sales of 16 million units. He stated that China has essentially led global development in the entire NEV sector, particularly in pure electric vehicles, emphasizing that such scale is unattainable without systemic innovation support given the industry's extensive supply chain.

He specifically noted that automobile export growth from January to May this year exceeded 60%, a figure he described as "beyond imagination." This indicates that Chinese NEVs, which have achieved product and technological advancements through innovation, are welcomed by global consumers, especially in meeting the worldwide demand for electrification, green initiatives, and low-carbon solutions.

Key Drivers of Innovation

Feng attributed this success to four primary factors.

1. National-Level Foresight and Planning

The development of new energy vehicles has a history of over 20 years, during which the government has played a crucial role in driving the industry's growth.

2. Sustained High R&D Investment by Enterprises

GAC GROUP has maintained its investment in independent research and development at over 10% of sales revenue for many years and currently remains above 7%, covering areas such as batteries, the three-electric systems (battery, motor, electronic control), intelligent cabins, and autonomous driving. Feng emphasized that investment in technological innovation is the foundation for enterprise development.

3. Industrial Chain Collaboration

Given the vast scale and enormous investment required by the automotive supply chain, support from all parties is essential. The emergence of companies in batteries, motors, electric drives, and intelligent connectivity, like CATL, has collectively supported the innovation of整车 (whole vehicle) manufacturers.

4. China's Robust Manufacturing Foundation

Previously, most battery production equipment was imported. Now, over 90% is manufactured locally in China, providing strong support for both component and vehicle manufacturers.

Concluding Remarks

In conclusion, Feng Xingya summarized that GAC GROUP is not only a participant in the intelligent connected and new energy vehicle sector but also a promoter and witness of the automotive industry's transformation. "If I were to summarize this point, I believe it is the combination of a 'proactive government' and an 'effective market'," he stated.