Just Transition in Hubei’s Automotive Industry: Pathways and Lessons

Faced with the rigid constraints of the “Dual Carbon” goals and the intensifying global technological competition, the transformation of Hubei’s automotive industry is no longer merely technological improvements but even more of a social experiment concerning the livelihood of millions and regional economic restructuring. Based on the case study of Hubei’s “Wuhan–Xiangyang–Shiyan–Suizhou” industrial cluster, this paper analyzes the logic of Just Transition of the automotive industry as it experiences capacity contraction of the traditional internal combustion engine (ICE) vehicles and explosive growth of new energy vehicles (NEVs) at the same time. The study finds that, leveraging the advantages of a new national system, Hubei province has built a four-dimensional just transition pathway that consists of “Institutional Guidance, Market Empowerment, Social Inclusion, and Regional Synergy”. Through forward-looking mechanisms such as “Skill Retraining Hubs” and “Skills Training On Demand” collaboration between enterprises and educational institutions, Hubei has successfully transformed employment pressure into incentives for industrial upgrading, achieving a paradigm leap from “meeting basic needs of laid-off workers” to “creating high-quality jobs”. Data show that in 2024, Hubei’s NEV production surged by 109%, confirming the practical efficacy of the “Development-Oriented Just Transition”. This paper aims to provide empirical support for national industrial transition policies and offer a replicable “Hubei Solution” for Global South nations trying to balance green growth with social justice.