🇨🇳🚘China’s domestic auto market has undergone a dramatic transformation. Chinese car brands now command 65% of passenger car sales in China, up from 39% in 2019. Foreign brands—once dominant—have seen their market share plummet. German manufacturers, in particular, dropped from 24% to just 15% over five years. The shift reflects not only changing consumer preferences but the strategic success of China’s industrial policy.

Since 2009, China has poured billions into subsidizing New Energy Vehicles (NEVs), from electric to hydrogen models. This long-term support created a competitive ecosystem where Chinese manufacturers now control over 60% of the global battery market and around 65% of global EV sales. But the transformation goes deeper.

Foreign automakers, desperate to remain relevant, are embedding themselves into China’s industrial infrastructure. German firms are investing in local EV startups like XPeng, outsourcing R&D to China, and increasingly building more cars in China than in Germany. Tesla relies on its Shanghai Gigafactory as a global export hub. Renault’s Dacia Spring is built in China via Dongfeng, and Mercedes’ Smart brand is now fully China-based.

This marks a turning point: China is no longer just the world’s largest auto market—it’s the gravitational center of global automotive production. Design, supply chains, pricing, and innovation are increasingly shaped by decisions made in China.

In this new manufacturing reality, what strategies should Western automakers adopt to stay competitive in a China-centric auto industry?#AMAGE