BEIJING, Sept. 18 (Xinhua) -- The intelligent connected new energy vehicle (NEV) industry is anticipated to contribute greatly to the upgrading of China's automobile industry, along with continuous breakthroughs in core technologies in this sector amid the artificial intelligence boom.

The Ministry of Industry and Information Technology (MIIT) and eight other departments in early September jointly released a plan for the development of the intelligent connected NEV industry during the 15th Five-Year Plan period (2026-2030).

The plan proposes that, by 2030, China will further consolidate its advantages across the entire intelligent connected NEV industrial chain and join the ranks of the world's auto powerhouses.

Intelligent connected NEVs are the main direction for transforming and upgrading the country's automobile industry, are typical examples of new quality productive forces, and are key components in building a modern industrial system in China, the plan notes.

This move is valued as a future-oriented strategic layout for strengthening the automobile industry which has undergone decades of constant progress in scale and core technologies and brands, with technological capabilities acting as the major driving power.

In 2025, China's automobile production and sales respectively reached 34.53 million and 34.4 million units, up 10.4 percent and 9.4 percent year on year respectively. The industry has maintained over 30 million units for three consecutive years and ranked the first globally for 17 successive years.

Of the total, production and sales of NEVs respectively reached nearly 16.63 million and 16.49 million units, ranking the first in the world for 11 years straight.

The large-scale deployment of intelligent connected vehicle technology, notably, is reshaping the core competitiveness of China's automotive industry.

In the first three quarters of 2025, 64 percent of new passenger vehicles in China were equipped with Level 2 (L2) combined driver-assistance functions. In 2026, this rate has climbed to 70 percent, and more than 30 percent of automobile models provide navigation-assisted driving functions.

What's more significant, Level 3 (L3) conditional autonomous driving has run beyond closed-road testing into commercial application. It means China's industrialization of intelligent connected vehicle sector is accelerating on all fronts, including such major shift from technical validation to commercial deployment.

Continuous breakthroughs in key technologies are generating strong momentum for auto industry upgrading. Major advances have been made in diverse areas such as batteries, charging, automotive chips and intelligent driving systems.

More importantly, some of these innovative technologies have achieved large-scale commercial application in the Chinese auto market through rapid iterative innovation.

China has developed an automotive technology ecosystem sustained by emerging technologies, innovative development models and novel business models, which lay a solid technological foundation for the country to achieve its goal of becoming one of the world's auto powerhouses.

Looking ahead, the plan notes that by 2030, in the domestic market, new energy passenger vehicles and commercial vehicles will account for 70 percent and 40 percent respectively. Also, vehicles equipped with autonomous driving functions will be applied on a large scale.

By 2030, key auto technologies will be significantly improved, with average fuel consumption of passenger vehicles reaching 3.3 liters per 100 km, and average electricity consumption of all-electric passenger vehicles reaching approximately 11.5 kilowatt-hours per 100 km. Highly automated driving will be achieved in scenarios like expressways, urban express roads and other urban roads, according to the plan.

The plan points out that enhancing technological innovation capability is a key priority in intelligent connected NEV development. With critical areas focused on energy and power systems, intelligent chassis and intelligent connectivity, China will carry out strategic, forward-looking and pioneering R&D initiatives to drive the development of the next-generation technologies for intelligent connected NEVs.

During the 15th Five-Year Plan period, efforts will be made to uphold the bottom line of product quality and improve the safety and reliability of autonomous driving, said Xin Guobin, vice minister of the MIIT, at a recent media conference.

Policies concerning NEV insurance will also be optimized, while maintenance costs will be reduced to address consumer concerns and encourage consumers to purchase and use NEVs with confidence, he added.