Core Viewpoint - The Chinese electric vehicle (EV) market is experiencing significant growth, with a focus on smart connectivity and competitive pricing strategies among manufacturers [3][4][7]. Market Trends - In January-February 2025, the production of new energy vehicles reached 4.454 million units, marking a year-on-year increase of 13.9%, with a cumulative penetration rate of 40.8% [3]. - The market is characterized by three main trends: increased focus on smart connected vehicles, practical promotional strategies, and a shift among joint ventures towards utilizing mature domestic products [3]. - The market share of cars (CAR) rose to 51.2%, with SUVs and MPVs at 38.0% and 3.8% respectively, while commercial vehicles like trucks and buses also saw growth [4]. Battery Market - In February 2025, the installed capacity of power batteries reached 33.7 GWh, a year-on-year increase of 88.7% [7]. - The average battery capacity per vehicle was 48.0 kWh, reflecting a 4.4% increase year-on-year [7]. - The market is dominated by square battery cells, which accounted for 98.2% of the total, while lithium iron phosphate (LFP) batteries made up 73.4% of the passenger vehicle market [8]. Battery Suppliers - The top three battery manufacturers held a combined market share of 75.0%, with the top ten accounting for 94.6% of the domestic demand [9]. - CATL remains the leader in installed capacity, with a year-on-year growth of 71.5% [9]. - Other notable suppliers include BYD and AESC, with significant growth rates observed across the board [9]. Electric Motor Market - In February 2025, the top ten electric motor suppliers accounted for 66.0% of the market share, with companies like BYD and Geely achieving self-supply capabilities [11]. - The only company to see a decline in supply was Tesla, primarily due to reduced sales of its Model series [11]. 48V Low Voltage System - The development of the 48V low voltage system is progressing from traditional 12V systems, with applications in smart chassis and intelligent driving [16][17]. - Major automakers are exploring the integration of 48V systems, with Tesla being the first to implement it in mass production vehicles [20]. - Challenges include increased costs and the need for a mature supply chain, as well as the requirement for new testing standards [18]. Company Strategies - Companies like BYD and Geely are actively developing 48V hybrid systems, while Tesla has fully integrated 48V systems into its Cybertruck [20]. - The industry is witnessing a shift towards more sophisticated electrical architectures to accommodate the new systems [18].