China today stands at the forefront of the global new-energy and automated-vehicle revolution. Sales of new-energy vehicles (NEVs) including battery electric, plug-in hybrid, and fuel-cell models have surged in recent years, making China the world’s largest market for electric mobility. By the end of October 2025, NEV penetration had reached a historic 49.5%, highlighting the rapid replacement of traditional internal combustion engine vehicles (ICEs) with electrified drivetrains. Within the NEV segment, battery electric vehicles (BEVs) continue to dominate, while plug-in hybrids (PHEVs) have captured a growing share of buyers seeking extended range and affordability. The transition encompasses both passenger and commercial vehicles, though NEV passenger cars remain the primary driver of market growth. At the same time, China is advancing automated driving technologies, with widespread adoption of Level 2 and Level 2+ systems, rapid progress in Level 3 pilots, and targeted Level 4 deployments, signaling a future of mobility that is not only electric but increasingly intelligent and automated. 

This chart shows the penetration rate of Level 2 (L2) Autonomous Vehicles (AVs) from 2020 to 2024 in China. L2 AVs feature advanced driver-assistance systems (ADAS) that simultaneously control steering and acceleration/deceleration yet still require human supervision. L2 features have gone mainstream, rising from 16.2% in 2020 to 57.3% in 2024, now in over half of new vehicles. This rapid growth reflects strong consumer adoption, supportive regulations, and automakers’ emphasis on ADAS as a foundation for higher autonomy.

Source: China Association of Automobile Manufacturers