NANJING - Chinese new energy vehicle (NEV) manufacturer Li Auto on Friday inaugurated its first overseas research and development (R&D) center in Munich, Germany, in a milestone move signaling deepening ties between China and Germany in the burgeoning NEV sector.

The Munich center will adopt a localized and collaborative approach to R&D, working alongside Li Auto's Chinese team to drive the development of next-generation technologies, including those related to vehicle design, power semiconductors, smart chassis systems and electric drivetrains.

According to Li Auto, the center will also work to understand the European market and develop capabilities aligned with European automotive regulations and consumer preferences, with the aim of offering more convenient, comfortable and enjoyable mobility solutions to European families.

"This R&D center marks the official start of Li Auto's global strategy," said Ma Donghui, president of Li Auto. "It will also serve as a cornerstone of our artificial intelligence (AI) core strategy, with nearly half of our R&D investment currently directed toward AI technologies."

By the end of 2024, Li Auto had delivered over 1.1 million vehicles, and its annual delivery figure had surpassed 500,000 for the first time, solidifying its standing as a rising force in China, the world's largest NEV market.

According to data from the China Association of Automobile Manufacturers, China's NEV production totaled 12.88 million units in 2024, with sales nearing 12.87 million -- respective year-on-year increases of 34.4 percent and 35.5 percent.

Li Auto's new R&D center is considered groundbreaking as it represents a key step in the global expansion of China's NEV industry and will foster cross-national collaboration.

Qiu Xuejun, China's consul general in Munich, noted that the center will promote mutually beneficial cooperation between the Chinese and German auto industries.

"It will accelerate the green transformation process, aligning with the shared interests of both nations and supporting the global automotive industry's transition toward sustainability," Qiu said.

Germany's auto sector is also advancing its transition to green and intelligent mobility, seeking closer cooperation with China's NEV industry. Many German companies have expressed confidence in China's advanced manufacturing, R&D capabilities and market potential.

German auto giant Volkswagen has built its largest overseas R&D center in East China's Anhui province, focusing on electric vehicles and NEV technologies. The move was a strategic effort from the established multinational automaker to enhance its competitiveness in the Chinese market and strengthen its partnerships with local suppliers.

Bosch Group, another German multinational, launched its commercial-vehicle China headquarters in East China's Jiangsu province last year, signaling its strong commitment to China's NEV and intelligent driving sectors.

"We see China as a key strategic market for Bosch, playing an essential role in our global strategy. Our efforts have led to significant success, making China Bosch's largest market outside of Germany," said Stefan Hartung, chairman of the company's board of management.

"We are fully convinced that this new setup will pave the way for enhanced collaboration, ultimately contributing to a low-carbon transportation future, not only in China but globally," Hartung added.