China's Auto Sector Shifts Toward Quality with ICVs as Primary Engine for Growth

China's trillion-yuan auto plan focuses on precision alignment and intelligent connected vehicles (ICVs) to boost domestic demand. The plan aims to create 100 signature products and innovative enterprises, roll out pilot scenarios for new technologies, and expand new energy vehicle sales to rural markets. The shift from quantity to quality in production is driven by consumer preferences for diversified products, a mature supply chain, and falling costs. Domestic manufacturers are executing this strategy, with companies like Leapmotor, Zeekr, and Nio targeting specific markets and services. Authorities are also exploring the used car market and aftermarket services to unlock the sector's potential.