CHINA’S auto industry supply chain faces profound changes as the electric and smart-car transition accelerates, breaking up the old supply system and bringing in new competitors.

“China’s electric vehicle (EV) penetration rate is already the highest in the world, and the entire automotive supply chain is undergoing an overhaul,” a state-owned investment company executive said. “Challenges and opportunities are both ahead.”

China accounted for 30 per cent of global new EV sales, followed by Europe with more than 20 per cent, while the share of the US was 8per cent in 2022, according to the International Energy Agency. At last month’s Shanghai international auto show, more than a third of the 1,400 cars showcased were EVs.