How Henan is leading the charge in the new energy vehicle industry

On Nov. 9, 2024, a development and cooperation matchmaking event for the automobile industry was held in Zhengzhou, central China's Henan Province. Representatives from government, industry, and academia in the automotive field gathered to discuss global insights on automotive development, technological evolution, and industrialization pathways, jointly planning the future of Henan's new energy vehicle (NEV) and intelligent connected vehicle industries.

Photo shows a scene of the development and cooperation matchmaking event for the automobile industry held in Zhengzhou, central China's Henan Province, Nov. 9, 2024. (Photo/People's Daily Online)

The automobile industry is an important indicator of a country's industrial strength and capabilities. In recent years, China has been actively working to advance its NEV industry, achieving a transformative shift towards the holistic development of the entire industry supply chain.

In response to the accelerated development of automotive industry and supply chains, Henan Province has made NEVs a key focus for industrial chain clusters. Currently, Henan has attracted 17 complete vehicle manufacturing companies and over 600 automobile parts manufacturing enterprises above designated size, driving forward the integrated growth of vehicle assembly, parts production, and the aftermarket.

The NEV industry has grown from nonexistence to excellence, quickly becoming a new growth pole in Henan's economy. So, what advantages does Henan offer?

Policy: Strong government leadership

In 2022, the Henan provincial government issued guidelines for the further development of the NEV industry, aiming to reach an annual production of over 1.5 million NEVs and establish a 300 billion yuan ($41.7 million) NEV industry cluster by 2025, creating a nationally influential NEV industry base. In 2023, Henan designated NEVs as a key industry chain cluster and introduced a province wide action plan for developing the industrial chain, focusing on supporting NEV industry development, clarifying industry positioning, overall strategy, and primary directions, and advancing toward developed NEV regions in China.

Momentum: Innovation-driven development

Currently, Henan has established research institutes for NEVs, new energy power, energy storage battery materials, and automotive electronics, with a focus on electric drive systems, electronic control systems, and battery management systems. Henan is a national leader in areas such as intelligent connected buses, emergency braking systems, information security, and image recognition. The province has distinct advantages in NEV buses, pickup trucks, and cargo vehicles, positioning itself as a "nursery" for NEV technology.

Ecosystem: Rapid industry clustering

In recent years, Henan has continuously optimized the industry ecosystem, mapping out four key blueprints: industry chain, technology, talent, and equipment. It has fostered and attracted strong enterprises in critical areas, addressing gaps and weaknesses in the industry chain. Henan ranks among the national leaders in output for more than 10 types of components, including batteries and steering systems, forming a complete industry chain from raw materials to core components and whole vehicle support equipment and the Internet of Things (IoT), providing robust support for the industry's sustained and stable development.

Moreover, Henan boasts significant transportation and geographical advantages, abundant human resources, and strong consumer demand. With promising development prospects for the NEV industry, numerous automotive companies have invested deeply in Henan, making it a powerful engine for high-quality economic growth.

Statistics show that in the first three quarters of 2024, Henan's automotive export trade reached 23 billion yuan, an increase of 22.3 percent. Among this, electric vehicle exports accounted for 5.2 billion yuan, up 67 percent. Henan's NEV industry is now on a fast development track.