On November 2, the “New Energy Vehicle Industry Development Plan (2021–2035)” (hereinafter referred to as the “Plan”) was officially issued, setting the tone and charting the course for the development of new energy vehicles over the next fifteen years. The Plan calls for intensifying efforts to master key technologies and fostering deep integration across industries, which will benefit technology‑driven enterprises along the new energy vehicle value chain. Companies such as Jinfei Kaida (002863) and Shuanghuan Transmission (002472), which serve as core component suppliers to automakers, have thus garnered strong market favor.
Since the beginning of this year, favorable policies for new-energy vehicles have been introduced at both the national and local levels. According to the latest data from the Ministry of Industry and Information Technology, cumulative investment across the domestic new‑energy vehicle industry chain has exceeded RMB 2 trillion, making it an increasingly important driver of growth. Moreover, new‑energy vehicle sales have ranked first globally for five consecutive years. The newly released “Plan” sets out that by 2025, new‑energy vehicles will account for roughly 20% of total new‑car sales; by 2035, battery electric vehicles will become the mainstream in new‑car sales, all‑electric vehicles will fully replace conventional ones in the public sector, fuel‑cell vehicles will achieve commercial deployment, and highly automated driving vehicles will be deployed on a large scale.
Boosted by favorable policies, on November 3, sectors such as new-energy vehicles and charging stations opened higher. As of the morning close, the new-energy vehicle sector was up 1.13%; the charging-station sector gained 0.99%; the fuel-cell sector rose 1.16%; and the auto-parts sector advanced 0.89%.
As one of the largest industrial chains, it spans numerous sectors, with upstream, midstream, and downstream segments encompassing positive and negative electrode materials, batteries, complete vehicles, charging stations, and more. Last month, the new-energy-vehicle sector index posted its highest monthly gain in nearly two years. Today, seven individual stocks—including Pader Technology, Hanyu Group, and Longxing Chemical—hit their daily upper limits, while auto‑parts stocks tied to complete vehicles also remained active; for instance, Shuanghuan Transmission (002472) saw its share price surge by over 8% at one point during the morning session, and Jinfei Kaida (002863) rose by more than 7% shortly after the afternoon opening.
Shuanghuan Transmission’s core business is mechanical transmission gears, and it is a leading gear manufacturer with years of technological expertise and state-of-the-art precision machining capabilities. As new‑energy vehicles demand higher levels of gear accuracy, quality, and added value, Shuanghuan Transmission leverages its strengths to capture market share, serving top domestic automakers such as SAIC, Geely, BYD, and GAC, while also launching projects with several high‑end foreign‑brand OEMs. Looking ahead, the company is poised to benefit from the automotive industry’s ongoing transformation and upgrading.
Jinfei Kaida (002863) primarily manufactures and markets aluminum alloy wheels, serving both the OEM and AM markets. In the OEM segment, as a Tier‑1 supplier to vehicle manufacturers, the company sells its products directly to automakers and has established stable, long‑term supply relationships with well‑known domestic and international automakers, including SAIC Volkswagen, SAIC‑GM‑Wuling, Suzuki, Daihatsu, Changan Automobile, Geely Automobile, Dongfeng Motor, and Dongfeng Peugeot‑Citroën.
The aluminum alloy wheel industry is closely tied to the overall health of the automotive sector, with its cyclical patterns largely synchronized with those of the auto industry. Demand for its products is influenced by macroeconomic conditions and shifts in automotive market demand. Jinfei Kaida is one of China’s leading companies in the aluminum alloy wheel sector, boasting a production scale and product quality that rank among the industry’s best. Benefiting from the sector’s growth, the company reported operating revenue of RMB 2.134 billion for the January–September period, up 2.68% year over year, and net profit attributable to shareholders of the listed company of RMB 55.5836 million, a year-on-year increase of 18.75%. Notably, Jinfei Kaida holds several core technologies, primarily focused on material development, mold design and engineering, and the advancement of new manufacturing processes—all key to achieving vehicle lightweighting. As lightweighting is a major driver of the new‑energy vehicle (NEV) industry, the company stands to benefit significantly from the anticipated surge in NEV demand going forward.
Industry analysts note that, at present, new‑energy vehicles account for less than 5% of total automobile sales in China. Based on the 20% target set in the Plan, new‑energy vehicle sales could reach 5.6 million units by 2025. Driven by the combined momentum of industrial development and supportive policies, the long-term growth trajectory of China’s new‑energy vehicle sector is firmly established.
Shanxi Securities believes that the official release of this policy is broadly in line with expectations, and its preference for new-energy vehicles remains unchanged. In the long term, the introduction of these measures will benefit the NEV sector and its related industrial chain. We recommend adopting a top-down approach, starting with high-quality segments within the supply chain, to identify promising investment targets. Specifically, we advise focusing on leading automakers with well‑developed capital‑chain deployments, premium component suppliers, and battery‑recycling companies.
