On December 29, 2025, the Ministry of Industry and Information Technology, the Ministry of Education, the State Administration for Market Regulation, and the National Data Administration jointly released the Implementation Plan for the Digital Transformation of the Automotive Industry (hereinafter referred to as the Implementation Plan).

As a cornerstone of China’s economy, the automotive sector – with its complex supply chains and broad economic impact – represents a key focus in the digital transformation of the manufacturing industry and high-quality development. The Implementation Plan has been formulated to advance the strategic objectives outlined in China’s 15th Five-Year Plan (2026 – 2030) and to implement the Action Plan for the Digital Transformation of Manufacturing Industry issued in 2024.

Stated in the Implementation Plan, China is currently facing three major hindrances in the digital transformation of automotive industry, particularly in the field of intelligent manufacturing of vehicles:

  1. Lack of a mature top-level design,
  2. Value of data as a factor of production is not fully realized, and
  3. Digital transformation for small and medium sized enterprises of parts and components is slow.

By fully unlocking the value of data as a factor of production and promoting deep integration of AI and automotive manufacturing, China aims to systematically address these three challenges. The Implementation Plan sets out two-phase development goals:

By 2027

Digital intelligence technologies will be deeply integrated and applied in the R&D, production, supply, sales, and service links of enterprises, significantly enhancing the maturity of intelligent manufacturing and production efficiency of enterprises, and gradually improving the industry supply and public service systems.

The Implementation Plan sets out detailed, quantified targets to illustrate this goal:

  • The maturity level of intelligent manufacturing capabilities of leading vehicle enterprises will be raised by one grade.
  • The digitalization level of parts and components enterprises will be significantly enhanced.
  • The popularization rate of R&D design tools will exceed 95%, and the rate of numerical control in key processes will exceed 70%.
  • The industry’s overall labor productivity will increase by 10% compared to 2025, and the product R&D cycle and delivery cycle will be shortened by 20%.
  • A replicable and scalable intelligent factory model will be created, and over 20 industry intelligent manufacturing system solution providers will be cultivated.
  • A digital transformation and intelligent manufacturing standards system, technology supply system, and talent training system that are in line with the industry’s characteristics and internationally advanced will be formed.

By 2030

The overall digital intelligence development of the industry will reach a relatively high level. Digitalization will be deeply integrated with core business processes, coordinated development will be achieved across small, medium and large enterprises, and the supplier system will be continuously optimized. A digital public service system matching the industry’s development level will be basically established, and the overall level of support and safeguards will be significantly enhanced.

To achieve these objectives, the Implementation Plan proposes six major actions:

  1. Diagnosis and Evaluation and Improvement Action
  2. Digital Transformation Empowerment Action for Small and Medium-sized Auto Parts Enterprises.
  3. Typical Scenarios and Artificial Intelligence Application Demonstration Action
  4. Ladder Cultivation and Matrix Construction Action for Industry Players
  5. Standards System Improvement and Interconnection Assurance Action,
  6. Key Technology R&D and Basic Capability Enhancement Action

Notably, two actions have mentioned the importance of standards.

Under Action No. 5, the Implementation Plan sets following 6 specific tasks:

  • Strengthen the Construction of Standard Systems and Develop Key Standards.
  • Improve the standard system for industry digital transformation and intelligent upgrading to achieve full coverage across all stages of the industrial chain.
  • Promote the development of foundational standards, such as scenario guidelines, data elements, AI applications, and talent competency evaluations.
  • Accelerate the formulation of urgently needed standards for digital collaborative design, intelligent production services, and smart supply chain management.
  • Ensure Data Interoperability through Standardization.
  • In accordance with the Guidelines for the Development of the National Intelligent Manufacturing Standards System and  Guidelines for the Construction of National Data Standards Systems, fully align with the development of relevant national standard systems.
  • Prioritize the formulation of key data standards with industry-specific characteristics, including data management, data exchange and usage control, metadata, product master data, data dictionaries, and data models, to ensure effective interconnectivity between internal and external systems within the industrial chain and secure data flow.
  • Enhance the automotive industry’s data classification and categorization guidelines to fully realize the value of automotive data elements.

In addition, Under Action No. 6, to upgrade the data security protection mechanism while supporting the technological innovation, the Implementation Plan also highlighted that it is urgent to accelerate the improvement of data security management system and standards for automotive industry. To achieve this, automotive-specific standards related to data governance – identification, cataloging, tiered protection, and risk assessment will be developing, affecting all major automotive manufacturers.

The proposed standardization work is a cornerstone for transforming China’s automotive industry, directly targeting its core challenges. It provides the essential top-level design by creating a unified technical framework, offering a common language for the entire supply chain. Crucially, it aims to unlock the value of data by mandating interoperability standards for data management, exchange, and security—breaking down silos to enable secure and efficient data flow. Furthermore, by establishing clear, replicable standards for intelligent manufacturing and data governance, the plan will accelerate the digital transformation of small and medium-sized enterprises (SMEs). This lowers integration barriers for parts suppliers, optimizing the broader ecosystem and driving industry-wide efficiency, innovation, and global competitiveness.

If you need more detailed information about the Implementation Plan, please feel free to contact SESEC via email(assistant@sesec.eu).

Source: https://www.gov.cn/zhengce/zhengceku/202512/content_7053271.htm