In recent years, the rapid development of new energy vehicles has driven the swift growth of the "three-electrics" system—namely, power batteries, electric motors, and electronic control systems—fueling the expansion of the auto parts market. At the same time, the widespread adoption of intelligent connected vehicles has increased demand for high-tech automotive components such as in-car electronics and sensors. These technological advancements have not only broadened the product lines in the auto parts market but have also enhanced the overall industry’s added value, creating more profit opportunities for automotive parts manufacturers.

The growth of the new energy vehicle parts market is primarily driven by technological innovation. As new energy vehicle technology continues to evolve, so do its components. For instance, in battery technology, improvements in energy density and cost reductions have continuously enhanced the range and cost-effectiveness of electric vehicle batteries. In electronic control systems, the increasing level of intelligence has optimized performance and stability, providing a better driving experience for new energy vehicles.

Trends in the Lithium Battery Industry Chain

As of February 2025, the global lithium battery industry chain is showing a divergence in trends. While the prices of lithium carbonate and lithium hydroxide continue to experience slight declines, the European new energy vehicle market has seen a stronger-than-expected recovery, with sales growing by 26% year-on-year. Meanwhile, the cost pressure on anode materials continues to rise, with the annual price increase of low-sulfur petroleum coke and needle coke exceeding 30%-70%. The industry urgently needs a pricing mechanism to mitigate cost pressures.

In January and February 2025, production scheduling data in the lithium battery industry chain was impressive, with lithium carbonate, batteries, and cathode materials recording cumulative year-on-year production scheduling increases of 54%-122%. Notably, in February alone, battery and electrolyte production scheduling saw a year-on-year surge of over 120%, while other segments also experienced growth of over 60%. The high prosperity of the industry is mainly driven by low global lithium battery inventories, increased subsidies for China’s electric vehicle market, and the combined demand from energy storage in China, the U.S., and Europe.

In January 2025, new energy vehicle sales in ten European countries reached 182,000 units, marking a 26% year-on-year increase and bringing the penetration rate to 24%. Analysts attribute this growth to automakers accelerating their electrification transition to avoid fines for failing to meet carbon emissions regulations. In contrast, the U.S. market performed relatively weakly, with new energy vehicle sales reaching only 115,000 units in January, reflecting a modest 9% year-on-year growth, primarily due to declining Tesla sales in its home market. Meanwhile, the Chinese market remained stable, with wholesale sales of new energy passenger vehicles reaching 889,000 units in January, a 28% year-on-year increase, achieving a penetration rate of 42%, in line with market expectations.

According to data from 'Fortune Business Insights', the global electric vehicle motor market was valued at $17.15 billion in 2023 and is projected to grow from $23.75 billion in 2024 to $73.9 billion by 2032, with a compound annual growth rate (CAGR) of 15.2% over the forecast period.

As a key component of the drive system, the electric vehicle motor shaft plays a crucial role in transmitting the torque generated by the motor, directly affecting vehicle performance, safety, and comfort. Thanks to the rapid expansion of the new energy vehicle market and advancements in motor shaft technology, global sales revenue for new energy vehicle motor shafts is expected to grow from ¥7.7 billion in 2022 to ¥23.8 billion in 2029, with an annual compound growth rate of 17.5%. The continued prosperity of the electric motor market will further drive the demand for related components.

The rapid development of the global new energy vehicle industry is fueling the growth of key components such as power batteries, electric motors, and electronic control systems while also promoting the adoption of smart connected vehicle components. Technological innovation remains the primary driver of market expansion, and as the battery, motor, and electronic control systems of new energy vehicles continue to upgrade, the demand for related parts will further increase. In the global market, the stronger-than-expected growth in European new energy vehicle sales and the stable development of the Chinese market present significant opportunities for the new energy vehicle parts industry. Looking ahead, the new energy vehicle parts market is expected to maintain its high-growth trajectory, providing broader development prospects for the entire industry chain.