Core Insights - The electric vehicle (EV) market in China has entered a new phase of comprehensive market development, with significant advancements in power system innovation supporting the low-carbon and electrification transition of the automotive industry [1][2]. Industry Overview - In 2024, China's automotive production and sales are expected to exceed 31 million units, with exports reaching 5.86 million units, maintaining the global lead [1]. - New energy vehicle (NEV) sales have reached 12.87 million units, with a penetration rate surpassing 40%, and the overall NEV market penetration has now reached 44% [1][2]. - In the first five months of the year, the automotive industry in China has shown strong growth, with production and sales reaching 12.83 million and 12.73 million units, respectively, reflecting year-on-year increases of 12.7% and 10.9% [1]. Technological Advancements - Significant breakthroughs in power system technology have been achieved, with hybrid dedicated transmission efficiency improving and hybrid engines reaching thermal efficiencies of 46%, a 13 percentage point increase since 2020 [3]. - Diesel engines have also improved, achieving thermal efficiencies over 48%, marking a 4.3 percentage point increase since 2020 [3]. - Electric drive technology has seen peak power density of drive motors exceeding 7000 watts per kilogram, and high-performance motor controllers based on silicon carbide devices achieving power densities of 45 kW per liter, nearly a 50% improvement since 2020 [3]. Characteristics of Power System Innovation - The automotive power system is evolving towards higher efficiency, integration, and intelligence, characterized by three main features: 1. Deeper system integration and multi-domain fusion, enhancing the compactness and efficiency of power systems [4]. 2. Innovations in materials and processes, with the introduction of silicon carbide, carbon fiber, and advanced manufacturing techniques like 3D printing, improving vehicle performance and production efficiency [5]. 3. Empowerment of power systems through artificial intelligence, enabling intelligent control and enhanced performance under extreme conditions [5].