China's New Energy Vehicle Output Reaches 16.626 Million in 2025; Xiaomi Opens Munich R&D Center
China's new energy vehicle production surged from 1.4 million units in 2020 to 16.626 million in 2025, reflecting the industry's rapid expansion as cars evolve into smart terminals. Xiaomi established a European R&D center in Munich in early 2025 to bolster international collaboration and high-end vehicle development. Its SU7 Ultra completed testing at Germany's Nürburgring Nordschleife, showcasing progress in mechanical-digital chassis technology. Domestic substitution of key components, including chips, operating systems, and premium chassis parts, continues to advance.
2026 marks the opening year of China's 15th Five-Year Plan. The country's new energy vehicle production grew from 1.4 million units in 2020 to 16.626 million units in 2025, a significant expansion of the industry. Automotive products are evolving from traditional means of transport into intelligent terminals and mobile living spaces, with application scenarios continuously broadening to include driving, parking, and other emerging areas. This development trajectory is closely tied to the positioning of intelligent connected new energy vehicles, which integrate electrification, intelligence, and material innovation, making them high-tech products with substantial technical density.
In early 2025, Xiaomi Group established a European R&D center in Munich, Germany, to strengthen international technological cooperation. The center aims to consolidate global expert resources and advance the high-end development of automobiles. Xiaomi's SU7 Ultra completed testing on the Nürburgring Nordschleife in Germany, with its performance reflecting China's accumulated technical expertise in mechanical-digital chassis systems. Additionally, China's automotive industry continues to make progress in the domestic substitution of components, including vehicle-grade chips, operating systems, and premium chassis parts, with some high-end components already entering the stage of widespread adoption.
Why this event matters
The event has a measured impact on 2 industrys. The strongest current signal is positive for New Energy Vehicles, with intensity 70/100 and 80% confidence over a medium term horizon.
New Energy Vehicles
- Direction
- positive
- Intensity
- 70
- Confidence
- 80%
- Horizon
- Medium term
Auto Parts
- Direction
- positive
- Intensity
- 60
- Confidence
- 75%
- Horizon
- Medium term
Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.