Despite efforts being made to improve efficiency and material substitution, the growth of the automotive sector has driven increasing natural resource consumption and waste. Leading players in China are proactively exploring new business models to find alternative avenues to growth and boost service-related revenue. As China’s automotive industry moves into a stable phase of development, a variety of new business models are facilitating decreases in natural resource use by generating value from service. For example: 1. Mobility as a service (MaaS): This encompasses on-demand car use – e.g. car sharing, peer-to-peer (P2P) sharing, and micro-mobility – and on-demand mobility services (e.g. ride-hailing, ridesharing, and demand-responsive transport/ridesharing). MaaS improves the accessibility of public transport and the efficiency of vehicle use. Many companies have launched driverless ride-hailing service and pilots in major cities across China. 2. Battery as a service: Battery swap services offered by manufacturers such as NIO reduce the need to deploy large numbers of charging piles and improve the efficiency of power grids. The presence of battery monitoring in the swapping process enables more effective identification and decommissioning of used batteries and promotes used battery recycling. 3. Subscription service: In recent years, many companies – e.g. NIO115 and Zeekr116 – have launched subscription car services to provide flexible options and meet different needs. Manufacturing and operations that have already occurred inevitably impact nature. Automakers should prioritize environmental protection and ecosystem restoration at the site of operations, incorporate potential impacts on nature into the assessment system and take measures to conserve and restore nature with Indigenous Peoples and local communities through the entire value chain. Automakers should cooperate with local governments, protected area management committees, non-profit organizations and other key local stakeholders to proactively protect, restore and invest in landscapes and watersheds in the vicinity of their operations and beyond. Before launching manufacturing activities, impact on nature should be incorporated into site selection processes. Where negative impacts have already occurred, restoration work should be undertaken to offset harm and reduce dependencies on nature. Geely Auto has stated that, in its Guiyang base, considerations around water, energy, land, forest and biodiversity are being integrated into plant design, production processes and operational management.117 A variety of new business models are facilitating decreases in natural resource use by generating value from service. Protection and restoration practices 3.3 Transform product offeringPriority action 3 3.4 Conserve and restore nature with Indigenous Peoples and local communitiesPriority action 4 31 Nature Positive: Role of the Automotive Sector – China Deep-dive

Nature Positive Role of the Automotive Sector China Deep dive