Key Takeaways
- China’s auto industry is moving from pure scale growth to high‑quality development during the “15th Five‑Year Plan,” driven by new‑energy vehicles (NEVs) and intelligent connectivity.
- By 2026 the market will see >250 new passenger‑car models, with NEVs comprising over 87% of launches; export growth is expected to stay near 10% despite geopolitical and raw‑material headwinds.
- Three core trends will shape the future: electrification (>50% penetration, 17 M units by 2030, domestic brands >60% share), intelligence (AI‑driven algorithms replacing rule‑based systems, driver assistance becoming standard by 2030, a trillion‑yen vehicle‑energy‑road‑cloud ecosystem), and ecosystem integration (the car evolving into an Internet‑of‑Everything hub).
- Deepal, now four years old, is on track to hit 1 million annual sales; March 2026 recorded 31,742 units (+87.8% MoM), the L06 rose 70%, and the S05 surpassed 190,000 global sales.
- Technologically Deepal holds >1,500 patents, has produced >1 million Yuanli Super Integrated Electric Drives, and secured China’s first official L3 autonomous‑driving license, with large‑scale public trials imminent.
- Product strategy highlights the L06 – China’s first magnetorheological‑suspension vehicle under ¥150,000, standard LiDAR and a 3‑nm chip – and the forthcoming S07 Huawei Qiankun Laser Edition featuring City NCA (Navigation on Autopilot).
- Deepal is deepening collaborations with Huawei and CATL, with a major partnership announcement slated for next week, aiming to democratize advanced technology.
- As the source of Changan Group’s electrification and intelligence technologies and a core engine for its global expansion, Deepal pledges continued innovation to build a youthful, mid‑to‑high‑end NEV brand and urges the industry to foster fair discourse and development, helping China shift from a major player to a global automotive powerhouse.
Industry Shift under the 15th Five‑Year Plan
Peng Qianlei emphasized that China’s automobile sector is transitioning from a phase of sheer scale expansion to one of high‑quality growth. The “15th Five‑Year Plan” positions new‑energy vehicles and intelligent connectivity as the dual engines propelling this transformation. Frontier technologies—solid‑state batteries, artificial intelligence, and low‑carbon manufacturing—are identified as catalysts for industrial change, while the value chain is moving toward full‑chain integration. Global outreach continues to deepen, reflecting Beijing’s ambition to evolve from a manufacturing hub to a technology‑driven automotive leader.
Differentiation Landscape Expected in 2026
Looking ahead to 2026, Peng forecast a critical period of market differentiation. More than 250 fresh passenger‑car models are slated for launch, with new‑energy vehicles accounting for over 87% of the mix. Although China’s auto export growth is projected to hover around 10%, the sector faces headwinds from geopolitical tensions and rising raw‑material costs. These dynamics will compel manufacturers to sharpen their value propositions, focusing on technology, user experience, and cost efficiency to survive the intensifying competition.
Three Core Trends Shaping the Future
Peng distilled the industry’s future into three intertwined trends. First, electrification has already surpassed a 50% penetration rate; the market is on track to reach 17 million units annually by 2030, with domestic brands now commanding over 60% share. Second, intelligence is being redefined by AI‑driven algorithms that are displacing traditional rule‑based systems; driver‑assistance features are expected to become standard by 2030, spawning a trillion‑yen ecosystem built on vehicle‑energy‑road‑cloud integration. Third, the ecosystem trend sees the automobile evolving from a mere transportation tool into a connected hub for the Internet of Everything, enabling services that span energy management, smart‑city interaction, and personalized mobility.
Deepal’s Sales Momentum and Milestones
Celebrating its fourth anniversary, Deepal reported strong sales momentum. The brand is on pace to achieve a cumulative 1 million‑unit sales milestone this year. March 2026 alone saw 31,742 units sold—an impressive 87.8% month‑on‑month increase—driven by a 70% jump in L06 deliveries and the S05 surpassing 190,000 global sales since its launch. These figures illustrate Deepal’s rapid market acceptance and its ability to convert technological advances into consumer demand.
Technological Achievements and Autonomous Driving Progress
On the technology front, Deepal has amassed more than 1,500 patents and produced over 1 million units of its Yuanli Super Integrated Electric Drive, a core component underpinning its powertrain efficiency. Notably, the company secured China’s first official L3 autonomous‑driving license, positioning it at the forefront of self‑driving readiness. Peng announced that large‑scale public trials of the L3 system are slated to commence soon, signaling a move from restricted testing to real‑world validation.
Product Strategy: Democratizing Advanced Tech
Deepal’s product lineup exemplifies its commitment to making cutting‑edge features accessible. The Deepal L06, China’s first vehicle equipped with magnetorheological suspension, is priced under ¥150,000 and comes standard with LiDAR and a 3‑nanometer in‑vehicle chip—a combination once reserved for premium models. Looking ahead, the impending S07 Huawei Qiankun Laser Edition will introduce City NCA (Navigation on Autopilot), bringing laser‑guided smart‑driving capabilities to a broader audience. These moves underscore Deepal’s strategy of bundling high‑end hardware and software at mass‑market price points.
Ecosystem Partnerships and Collaborative Innovation
To sustain its technology‑led growth, Deepal is cultivating a robust ecosystem through deep collaborations with industry leaders Huawei and CATL. joint efforts span battery technology, AI‑based vehicle‑cloud platforms, and intelligent chassis systems. Peng revealed that a major strategic partnership announcement is scheduled for next week, expected to further integrate hardware, software, and services across the mobility value chain. This collaborative approach aims to accelerate innovation cycles while sharing development costs and risks.
Deepal’s Role within Changan and Vision for Global Leadership
Peng positioned Deepal as the source of Changan Group’s electrification and intelligence technologies and a core engine for the group’s global expansion ambitions. He pledged that Deepal will continue to leverage innovation to forge a youthful, mid‑to‑high‑end new‑energy brand that resonates with younger, tech‑savvy consumers. Furthermore, he called on the broader automotive industry to improve the public discourse environment and ensure fair competition, arguing that such conditions are essential for China’s automotive sector to evolve from a major player into a genuine global powerhouse.