New Energy Vehicle Market Leads, Fasteners Face Opportunitie

Data recently released by the China Association of Automobile Manufacturers shows that China's automotive industry delivered outstanding results in 2025, with production and sales both exceeding 34 million units, reaching new historic highs and maintaining the global top position for 17 consecutive years. New energy vehicles have become the core growth engine, with production and sales both exceeding 16 million units. Domestic new car sales penetration exceeded 50%, marking China's official entry into a new development phase dominated by new energy, bringing structural growth opportunities to the upstream fastener industry.

In 2025, China's automotive production and sales reached 34.531 million and 34.40 million units respectively, growing 10.4% and 9.4% year-on-year, maintaining scale above 30 million units for three consecutive years. NEV production and sales reached 16.626 million and 16.49 million units respectively, with year-on-year growth approaching 30%. Chen Shihua, Deputy Secretary General of CAAM, stated that policy support, frequent new product launches, and sustained end-user demand drove production and sales beyond expectations. Passenger car production and sales both exceeded 30 million units, with Chinese brand passenger car market share rising to 69.5%, up 4.3 percentage points. Commercial vehicle production and sales returned to above 4 million units. Vehicle exports exceeded 7 million units, including 2.615 million NEVs.

The explosive growth of NEVs is reshaping the upstream supply chain. Compared to traditional fuel vehicles, NEVs impose more stringent requirements on fasteners, with lightweighting, high strength, and corrosion resistance becoming core demands. Industry data shows NEVs use 20-30% more fasteners per vehicle than traditional fuel vehicles, with significantly higher value. In battery pack structures, fasteners must achieve strength grades of 800-1000MPa and precision of ±0.5N·m.

The rise of Chinese brand passenger vehicles brings supporting upgrade opportunities for domestic fastener companies. As BYD, Nio, Li Auto, and other local automakers gain market share, more fastener companies are obtaining IATF 16949 quality system certification and entering core supply chains. Companies like Zhejiang Huayuan are supplying customized fasteners to popular NEV models.

Under industry upgrade trends, fastener technology iteration is accelerating. Smart manufacturing and digital quality traceability are becoming key competitive advantages. Under carbon reduction goals, environmental processes such as chromium-free passivation and hot-dip galvanizing alternatives are increasingly adopted. The widespread adoption of 800V high-voltage platforms and integrated die-casting body technology is creating demand for specialty fasteners with high-temperature resistance and anti-electrochemical corrosion properties. Smart fasteners, such as preload-monitoring bolts with integrated sensors, have begun small-batch trial installation in vehicles.

China's automotive fastener market is expected to exceed 82 billion RMB in 2025, with NEV-related fasteners accounting for 34%. Exports are expected to reach 18 billion RMB, primarily to Southeast Asia, the Middle East, and other Belt and Road countries. The 16th Shanghai Fastener Exhibition in June 2026 will focus on NEV applications, providing a platform for technology exchange and market matching.

Overall, the stable growth of China's automotive industry provides vast market space for the fastener industry. NEV, smart, and international trends are driving the fastener industry toward high-end transformation. Domestic fastener companies must seize technology upgrade opportunities, deepen specialization, and strengthen collaborative innovation with OEMs and tier-1 suppliers to secure more advantageous positions in the global automotive supply chain restructuring.