Opportunities and Challenges for China's Automakers during Transformation Empowered by Green Economy Development

As an indispensable part of the modern nationeconomy system, the green economy is becoming more significant and exerting more influence. It plays a key role in promoting sustainable and healthy economic development and strikes a balance between ecological environment protection and social and economic development, securing win-win results. Being one of the core driving forces of green economy development, new energy vehicle (NEV) companies contribute significantly to energy structure transformation and carbon emission reduction, pioneering the automotive industry in developing more environmentally friendly and efficient solutions. Empowered by the green economy development, Chinese NEV companies are facing unprecedented opportunities and challenges throughout the transformation. This paper analyzes the development issues of NEVs by discussing the limitations of the traditional automotive industry, the necessity of NEV development, and the challenges and opportunities. It is found that the traditional automotive industry is enduring issues such as high energy consumption and heavy pollution. The industry should be globalized with an improved supply chain. Measures such as promoting green economy development should be taken to address the imperfect supply chain as well as the environmental pollution and safety concerns associated with battery recycling, thereby shifting the automakers towards the new energy industry.