Automotive industry in China

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Vehicle traffic in an expressway in Beijing Jingtong Expwy east of Sihui (20230828160357).jpg
Vehicle traffic in an expressway in Beijing

The automotive industry in Chinese mainland has been the largest in the world measured by automobile unit production since 2008. [1] [2] As of 2024, China is also the world's largest automobile market both in terms of sales and ownership.

Contents

The Chinese automotive industry has seen significant developments and transformations over the years. While the period from 1949 to 1980 witnessed slow progress in the industry due to restricted competition and political instability during the social revolution era, the landscape shifted during the reform and opening-up period. Foreign investment and joint ventures played a crucial role in attracting foreign technology and capital into China. American Motors Corporation (AMC) and Volkswagen were among the early entrants, signing long-term contracts to produce vehicles in China. This led to the gradual localization of automotive components, and the strengthening of key local players such as SAIC, FAW, Dongfeng and Changan, collectively known as the "Big Four". The entry of China into the World Trade Organization (WTO) in 2001 further accelerated the growth of the automotive industry. Tariff reductions and increased competition led to a surge in car sales, with China becoming the largest auto producer globally since 2008.

In the 2020s, the automotive industry in China has experienced a rise in market dominance by domestic manufacturers, with a growing focus on areas such as electric vehicle technology and advanced assisted driving systems. The maturation of technology and supply chains has also led foreign carmakers to seek partnerships with Chinese manufacturers. However, the industry also faced heightened scrutiny and restrictions from Western countries, partly due to the China–United States trade war.

Since 2009, annual production of automobiles in China accounted for more than 32% of worldwide vehicle production, exceeding both that of the European Union and that of the United States and Japan combined. [3] Although the majority of vehicles produced in China are sold domestically, exports reached 3.11 million units in 2022, accounting for 11.5% of total production. This makes the country the world's second-largest car exporter. [4] In 2023, China overtook Japan and became the world largest car exporter. [5]

Automobile manufacturers in China mainly consists of local manufacturers and Sino-foreign joint ventures. Since 2018, the Chinese government began allowing foreign manufacturers to produce cars without forming joint venture with a local partner. The main industry group for the Chinese automotive industry is the China Association of Automobile Manufacturers (CAAM, Chinese :中国汽车工业协会).

Manufacturers and brands

Chinese major automobile manufacturers headquarter locations Chinese major auto manufacturers headquarters locations.jpg
Chinese major automobile manufacturers headquarter locations

Before 2010, the traditional "Big Four" refers to the four major state-owned car manufacturers, SAIC, FAW, Dongfeng and Changan. Other Chinese car manufacturers, both from public and private sectors, like Geely, BAIC, BYD, Chery, GAC, Great Wall, JAC and Seres emerged as the major players with the expansion of Chinese automotive industry.

Central government controlled state-owned manufacturers

Local government controlled state-owned manufacturers

Privately owned manufacturers

Smaller startup manufacturers

Foreign and joint venture manufacturers

Following the Reform and Opening-up era, from 1994 to 2018, Chinese automotive policy mandated that foreign carmakers had to establish joint ventures with a Chinese counterpart to produce vehicles in the country, with the Chinese partner owning at least 50% of the venture. This measure was implemented to protect local manufacturers and provide it with the chance to bridge the technology gap and develop their brands. [6]

On 10 April 2018, President Xi Jinping announced a "large-scale" relaxation of foreign investment restrictions in the automotive sector. Shortly after President Xi's announcement, the National Development and Reform Commission (NDRC) announced on 17 April 2018 that foreign ownership limits on automakers would be phased out over a 5-year transition period. On 28 July 2018, China lifted foreign ownership restrictions on new energy vehicle production, which benefited American electric car manufacturer Tesla, Inc. The company established a plant in Shanghai, becoming the first foreign automaker to open a wholly-owned manufacturing facility in China. [7] [8]

The liberalization was followed by commercial vehicles in 2020 and passenger cars in 2022. The rule that prohibited foreign automakers from setting up more than two joint ventures in China was also lifted in 2022. Therefore, it became legally possible for the foreign automakers to buy out local partners from joint ventures. In 2022, BMW and Volkswagen had acquired 75% stake in their joint ventures, which enabled them to have the majority control of its Chinese joint ventures. [9] [10]

Foreign manufacturers

Tesla Model 3 made by Tesla's Gigafactory Shanghai Tesla Model 3 Longyan 01 2022-08-05.jpg
Tesla Model 3 made by Tesla's Gigafactory Shanghai

The following are foreign manufacturers that operate in China either through wholly-owned manufacturing plants or joint ventures where they own more than 50 percent of the shares.

  • Tesla
    • Gigafactory Shanghai (Tesla currently is the only fully foreign owned car manufacturer in Chinese mainland)
  • BMW
  • Volkswagen
    • Volkswagen Anhui (used to be joint venture with JAC, a majority 78.52% stake was acquired by Volkswagen in 2020)
  • Ford
    • Ford Beyond (Jiangling Ford Technology, Ford holds 65.32% majority of stake indirectly) [11]

Joint venture manufacturers

The following are foreign manufacturers that operate in China through joint ventures where they hold a maximum of 50 percent ownership.

Summary

CompanyMarquesForeign-branded JVs
Central state-owned manufacturers
FAW Hongqi, Jiefang, Bestune FAW-Toyota, FAW-Volkswagen (Volkswagen, Audi, Jetta)
Dongfeng Voyah, M-Hero, Aeolus, Forthing, Nammi Dongfeng-Honda (Honda, Lingxi), Dongfeng-Nissan (Nissan, Infiniti, Venucia), Dongfeng-Peugeot Citroën
Changan Changan, Deepal, Avatr, Kaicene Changan Ford (Ford, Lincoln), Changan Mazda, Changan Ford NEV
Local state-owned manufacturers
SAIC IM, Rising, MG, Roewe, Maxus, Baojun/Wuling (under SGMW) SAIC-Volkswagen (Volkswagen, Skoda, Audi), SAIC-General Motors (Buick, Chevrolet, Cadillac)
GAC Trumpchi, Aion GAC-Toyota, GAC-Honda
BAIC Arcfox, Beijing, Beijing Off-road, Foton Beijing-Benz, Beijing-Hyundai
Chery Chery, Exeed, Jetour, iCar, Luxeed, Jaecoo, Omoda Chery-Jaguar Land Rover
JAC JAC, JAC Yiwei, JAC Refine, Sehol
Privately owned manufacturers
Geely Geely, Livan, Lynk & Co, Zeekr, Volvo Cars, Polestar, Lotus, LEVC, Farizon, Radar, Ji Yue, Smart, Proton
BYD BYD Auto, Yangwang, Denza, Fangchengbao
Great Wall GWM, Haval, Wey, Tank, Ora Spotlight (Mini)
Seres Seres, AITO, Fengon, DFSK, Landian
Li Auto Li
Smaller startup manufacturers
Nio Nio, Onvo
Xpeng Xpeng
Leapmotor Leapmotor
Hozon Neta

Sales data

Chinese major automobile groups global sales (joint venture brands excluded) [12]
YearState-ownedPrivately owned
FAW Dongfeng Changan SAIC GAC BAIC JAC Chery Geely BYD GWM Seres Li Auto
20101,038,290607,0681,316,5571,424,51345,065682,895442,547750,456425,194521,761415,779226,198-
2011907,337654,991987,9911,433,38744,056664,812466,459729,497857,006454,676518,965243,053-
2012718,327611,446950,5681,659,97371,505683,991448,813653,476905,083462,512672,234202,991-
2013723,969709,470990,5561,884,112124,001866,994495,737561,062979,691514,188803,449205,019-
2014627,006715,3441,126,0112,051,240146,694864,783446,802570,718878,818446,329767,825277,000-
2015505,849690,5311,270,1542,272,961207,890827,170588,052575,1081,025,287451,868871,315275,316-
2016505,711779,2981,382,9172,533,586375,723988,109643,342682,4741,333,077510,1571,086,639381,636-
2017572,862810,4071,327,1682,811,224508,797837,129510,892604,7081,938,057421,1581,085,654400,038-
2018543,986664,3131,139,5402,957,136535,323701,754462,477752,7592,276,846528,2981,072,529347,837-
2019589,832661,5851,060,6762,621,117384,792743,614421,241747,8062,194,145467,9601,097,451325,3811,000
2020779,403725,4751,306,1692,575,775353,597790,241456,125731,1172,150,134431,4471,111,598273,59033,457
2021846,803819,1721,557,2822,845,309447,207760,476524,224961,9262,189,409749,3251,280,993266,61490,491
2022555,406743,0321,874,5692,779,123633,704570,681500,4011,232,7272,312,6131,881,6691,067,523267,246133,246
2023732,328671,7022,097,7942,804,845886,508821,033592,4991,881,3162,790,0003,024,4171,230,704253,181376,030
Chinese major EV startup ventures sales
Year Nio Xpeng Hozon Leapmotor HIMA [13] Xiaomi
201811,3484821,206---
201920,56516,60811,2121,000--
202043,72827,04115,50910,266--
202191,42998,15569,67443,121--
2022122,486120,757152,073111,16876,180-
2023160,038141,601127,496144,15595,279


History

China's automobile industry can be traced back to the early origin of Changan Automobile in 1862 when Li Hongzhang set up a military supply factory, the Shanghai Foreign Gun Bureau. [14] [15] The first automobile in China was purchased from Hong Kong in 1902 by Yuan Shikai and gifted to Empress Dowager Cixi. It was later put on display in the Summer Palace Museum. During the early twentieth century, major western automobile manufacturers such as the Ford Motor Company, General Motors, and Mercedes-Benz had plants operating in Shanghai.

However, the War of Resistance against Japanese Aggression of 1937 hampered the progress of the Chinese auto industry, as seen by the relocation of the Changan Automobile factory from Shanghai to Chongqing in the wake of the city's bombing and attack. [16] After the foundation of the People's Republic of China in 1949, plants and licensed auto design were established in China with assistance from the Soviet Union in the 1950s, marking the beginning of the country's rapidly expanding automobile sector. However, the Chinese automotive industry had small volumes for the first 30 years of the republic, not exceeding 100–200 thousand per year.

Since the early 1990s, the Chinese automotive industry has developed rapidly. China's annual automobile production capacity first exceeded one million in 1992. By 2000, China was producing over two million vehicles. After China's entry into the World Trade Organization (WTO) in 2001, the development of the automobile market accelerated further. Between 2002 and 2007, China's national automobile market grew by an average 21 percent, or one million vehicles year-on-year. [17] In 2009, China produced 13.79 million automobiles, of which 8 million were passenger cars and 3.41 million were commercial vehicles and surpassed the United States as the world's largest automobile producer by volume. In 2010, both sales and production topped 18 million units, with 13.76 million passenger cars delivered, in each case the largest by any nation in history. [18] In 2017, total vehicle production in China reached 28.879 million, accounting for 30.19% of global automotive production. [19] In the first half of 2023, China overtook Japan to become the world's largest exporter of automobiles, exporting 2.34 million vehicles compared to 2.02 million for Japan. [20]

As of at least 2024, China is the world's largest market both in terms of automobile sales and ownership. [21] :105

Historic production data and notable milestones of Chinese automobile industry [22] [23] [24]
YearProductionGlobal shareMilestones
195561Foundation of the First Automobile Works (FAW)
196022,574
197087,166
1978149,062Beginning of the Reform and Opening-up
1985443,377
1990509,242
19951,452,697
20023,250,0005.6%Accession to the World Trade Organization (WTO)
20055,710,0008.6%
200913,790,00025.0%Surpassing the United States as the world's largest automobile producer
201018,260,00024.2%The largest number of production by any nation in history
201524,500,00027.43%Became the world largest EV producer
201729,020,00030.19%
202227,021,00031.8%Surpassing Germany as the world's second largest car exporter
202330,161,00033.8%The highest production record in history, surpassing Japan as the world's largest car exporter
Historic sales volume of Chinese brand passenger vehicle
YearChinese brand passenger vehicle sales [25] Domestic share of Chinese brand passenger vehicle [25] Global passenger vehicle sales [26] Global share of Chinese brand passenger vehicle
20106,273,00045.6%58,239,49410.77%
20116,112,20042.2%59,897,27310.20%
20126,485,00041.9%63,081,02410.28%
20137,222,00040.3%65,745,40310.98%
20147,518,00038.1%67,782,03511.09%
20158,737,60041.3%68,539,51612.75%
201610,529,00043.2%72,105,43514.60%
201710,847,00043.9%73,456,53114.77%
20189,890,00042.1%70,498,38814.03%
20198,470,00039.2%64,033,46313.23%
20207,749,00038.4%53,915,92814.37%
20219,543,00044.4%56,437,80316.91%
202211,766,00049.9%57,485,37820.47%
202314,596,00056%65,272,36722.36%

Early industrialization (1928 to 1949)

The first Chinese built motor vehicle was a truck called the Ming Sheng. It was designed by Daniel F Myers and a prototype was made at the Liao Ning Trench Mortar Arsenal, Shenyang. The prototype was completed on May 31, 1931, for Zhang Xueliang. Prior to production commencing, the factory was bombed by the invading Japanese and production never commenced. [27] A fellow general, Yang Hucheng, patronized the inventor Tang Zhongming to make a new type of automobile engine powered by charcoal. In 1932 Tang founded the Chung Ming Machinery Co. Ltd. in Shanghai to produce the engines. Charcoal powered vehicles were mainly used during the War of Resistance against Japanese Aggression in China because of fuel shortages. [28] Tung oil was also used during the war as a petroleum substitute. [29] One source states that Du Yuming designed a car in 1937, but did not make it until 1943 after having been forced to move because of the war. No further information has been found about it. [30]

The socialist revolution era (1949 to 1980)

Jiefang CA10, first production vehicle of China, made by the First Automobile Works in 1956 Jiefang CA10 at PRC70 Exhibition (20191203152134).jpg
Jiefang CA10, first production vehicle of China, made by the First Automobile Works in 1956

The development of the Chinese automobile industry during this period was relatively slow due to the lack of free market competition and turbulence of socialist political movement like Culture Revolution. Except for a certain degree of development in the 1950s with assistance from the Soviet Union, the Chinese automobile industry remained closed and lagging behind until the period of Reform and Opening-up. Most domestically produced vehicles were primarily the Jiefang trucks for military or industrial department and the Hongqi sedans used by a limited number of government officials. The concept of private cars had not yet emerged in China during this period.

Hongqi CA72 (1959) Hongqi CA72 1959 (14669521938).jpg
Hongqi CA72 (1959)

Since the foundation of the People's Republic of China, several vehicle assembly factories were set up in the 1950s and 1960s. They were Beijing (today's Beijing Automotive Industry Holding Corporation), Shanghai (today's Shanghai Automotive Industry Corporation), Nanjing (later Nanjing Automobile (Group) Corporation, merged with SAIC), and Jinan (evolving into China National Heavy Duty Truck Group). The Second Automobile Works (later Dongfeng Motor Corporation) was founded in 1968.

Shanghai SH760 1964 Shanghai SH760 -- Shanghai Automobile Museum -- 2012-05-26.jpg
Shanghai SH760

The first Chinese production vehicles were trucks made by the First Automobile Works in 1956, called the Jiefang CA-10. [31] This was followed on March 10, 1958, by the 2½ ton light duty truck (NJ130), which was based on the Russian GAZ-51, was produced in Nanjing. The truck was named Yuejin (meaning "leap forward") by China's First Ministry of Industrial Machinery.

In June 1958 the Nanjing Automobile Works, previously a vehicle servicing unit of the Army, was established. Production continued until the last truck (NJ134) rolled off the assembly line on July 9, 1987. Cumulative production was 161,988 units (including models NJ130, NJ230, NJ135 and NJ134). The first production automobiles were the Dongfeng CA71, Hongqi CA72, Feng Huang (later known as the Shanghai SH760) all from 1958.

The reform and opening-up and foreign investment (1980 to 2000)

Chinese economic reform in 1978 have brought opportunities for the development of the Chinese automotive industry.

Impact of foreign cars

The passenger car industry was a minor part of vehicle production during the first three decades of China's socialist economy. As late as 1985, the country produced a total of only 5,200 passenger cars. Car sales increased dramatically, although they were almost entirely purchased by danweis (work units  private car ownership was virtually unknown at the time). [32]

As domestic production was very limited, import totals rose dramatically, despite a 260 per cent import duty on foreign vehicles. Before 1984, the dominant exporter of cars to China had been the Soviet Union. In 1984, Japan's vehicle exports to China increased sevenfold (from 10,800 to 85,000) and by mid-1985 China had become Japan's second biggest export market after the U.S. [33] The country spent some $3 billion to import more than 350,000 vehicles (including 106,000 cars and 111,000 trucks) in 1985 alone. Three taxi companies in particular thirsted for Japanese cars, such as Toyota Crowns and Nissan Bluebirds. [34]

As this spending binge began to lead to a severe trade deficit, the Chinese leadership put on the brakes through the adjustment of import and foreign exchange policies. [35] Customs duties on imported goods were raised in March 1985 and a new "regulatory tax" was added a little later. In September 1985, a two-year moratorium on nearly all vehicle imports was imposed. [35]

Emergence of joint ventures and the "market for technology" policy

In July 1979, China adopted its first Law on Joint Venture Using Chinese and Foreign Investment. This law was effective in helping to attract and absorb foreign technology and capital from developed countries like the United States, facilitated China's exports to such countries, and thereby contributed to China's subsequent rapid economic growth. [36]

Jeep Cherokee, made by first joint venture of China, Beijing Jeep. Original Beijing Jeep XJ Cherokee.jpg
Jeep Cherokee, made by first joint venture of China, Beijing Jeep.

While limiting imports, China also tried to increase local production by boosting the various existing joint venture passenger car production agreements, as well as adding new ones. In 1983, American Motors Corporation (AMC, later acquired by Chrysler Corporation) signed a 20-year contract to produce their Jeep-model vehicles in Beijing. The following year, Germany's Volkswagen signed a 25-year contract to make passenger cars in Shanghai, and France's Peugeot agreed to another passenger car project to make vehicles in the prosperous southern city of Guangzhou. [34] These early joint ventures did not allow the Chinese to borrow much foreign technology, as knock-down kit assembly made up the majority of manufacturing activities; [37] tooling may not have been allowed to slip past borders.

Volkswagen Santana, made by SAIC-VW, once was the most popular family sedan from 1990s to 2010s. Chinese VW Santana sedan2.jpg
Volkswagen Santana, made by SAIC-VW, once was the most popular family sedan from 1990s to 2010s.

Until the late 1990s, there were eight joint venture enterprises in China producing passenger cars, including Shanghai Volkswagen, FAW-Volkswagen, Beijing Jeep, Guangzhou Peugeot, Dongfeng Citroën, Changan Suzuki, Changhe Suzuki, and Southeast Motor.

The Five-Year Plan and progress in domestic supply chain

In April 1986, the "Seventh Five-Year Plan (1986-1990)" officially proposed: "To consider the automobile manufacturing industry as a crucial pillar industry." It had a profound and positive impact on the Chinese automotive industry by recognizing it as a key national pillar industry, driving rapid industry growth, fostering domestic market prosperity, enhancing international competitiveness, and promoting technological innovation and sustainable development. [38]

Hongqi Mingshi, rebadged Audi 100 Hongqi Luxury Sedan.jpg
Hongqi Mingshi, rebadged Audi 100

The Chinese automotive industry gradually moved away from the manual workshop model and embraced Western advanced technologies and quality control management. Over the course of a decade, through digestion and absorption, the localization rate of Chinese automotive components significantly increased. In 1997, the localization rate of the SAIC-VW Santana, one of the most popular sedan in China then, jumped from 60.09% six years prior to over 90%, with key components like the car body, engine, transmission, and front and rear axle assemblies all achieving localization. The localization rate of the FAW-VW Audi 100 reached 93%, while the Jetta achieved an 84.02%. The localization rate of the Citroën Fukang by FAW exceeded 80%. The improvement in the localization rate of complete vehicles was made possible by the emerging prowess of complementary enterprises in the industry chain. Renowned automotive components today, such as diesel engines from Yuchai Machinery Factory and automotive glass from Fuyao, had their beginnings during this period. [39]

Several enterprises entered the automobile industry since 1994. Some of them are originated from defense industry, such as Changan, Changhe, and Hafei; some were developed from old state-owned companies, such as BYD, Brilliance, Chery, and Changfeng. Others are private-owned companies, such as Geely and Great Wall Motors.

The explosive growth and expansion (2000 to 2020)

Entering the WTO

Geely Haoqin, first vehicle produced by Chinese private manufacturer Geely in 1998. 2003 Geely Haoqing (HQ) JL6360E1, front 8.12.18.jpg
Geely Haoqin, first vehicle produced by Chinese private manufacturer Geely in 1998.

With China's accession to the WTO in 2001, automotive tariffs began to be substantially reduced, leading to a decrease in the prices of imported cars. Foreign automotive giants brought a multitude of their latest models into China. According to WTO regulations, starting from 2006, the import tariffs on complete vehicles in China were lowered from the previous 30% to 28%. In 2010, they were further reduced to 25%. Tariffs on automotive components like transmissions, shock absorbers, radiators, clutches, and steering units decreased from 13.5% to 12.9% and eventually to 10%.

China's entry into WTO brought about increased competition from domestic and foreign automotive brands. Amidst this intense competition, the prices in the domestic automotive market continued to decline. The annual average reduction in car prices has exceeded 8%, with a particularly significant decrease of 13.5% in 2004. [40] [41]

The rapid growth

Wuling has been the most popular minivan brand during 2000-2020. Wuling Hongguang achieved a record-breaking annual sales of 750,000 in the Chinese market in 2014. Wuling Hongguang Sanming 01 2022-07-01.jpg
Wuling has been the most popular minivan brand during 2000-2020. Wuling Hongguang achieved a record-breaking annual sales of 750,000 in the Chinese market in 2014.

The Chinese automotive market experienced explosive growth after 2000. This growth is closely tied to China's economic development and the rise of the middle class. An increasing number of Chinese households can afford cars, leading to a surge in sales. China's automobile production surged from 2 million vehicles in 2000 to 29 million vehicles in 2017, marking a growth of over fourteen-fold within 17 years. Its global market share rose from 3% to 30%, achieving remarkable growth. China has become the largest auto producer in human history, surpassing the combined production of traditional developed countries like the United States, Japan, and Europe. [22]

In 2017, there were 300.3 million registered vehicles in China. [43]

Intensified competition

Haval H6, best-selling SUV for 100 consecutive months, still holding the highest monthly sales record of 80,000 units in Chinese market. Haval H6 II (cropped).jpg
Haval H6, best-selling SUV for 100 consecutive months, still holding the highest monthly sales record of 80,000 units in Chinese market.

In the 2010s, with the rapid growth of China's automobile production, China became the country with the most diverse range of automotive brands globally. It has the most brands and models, which made it the most competitive market in the world. [45] Apart from mainstream joint venture brands dominating the mid-to-high-end market, there was a substantial presence of local state-owned and private small and medium-sized automotive companies. However, after 2018, an increasing number of these smaller brands became 'zombie company' state, with many suspending production and operations, as market-driven consolidation accelerated. The number of Chinese automotive brands increased from just over 20 in the early 1990s to 84 in 2019. [46]

On February 29, 2016, the Ministry of Industry and Information Technology shut down 13 automobile manufacturers that did not meet mandatory production evaluations for two consecutive years. [47]

According to research by investment bank Goldman Sachs, newly opened Chinese car plants are the most robotized of such facilities worldwide. [48] [49]

The "corner overtaking" strategy with new energy vehicles

BYD Tang was the top selling plug-in passenger vehicle in China in 2016. BYD Tang 02 -- Auto China -- 2014-04-23.jpg
BYD Tang was the top selling plug-in passenger vehicle in China in 2016.

In 2009, the State Council of China issued the "Automobile Industry Adjustment and Revitalization Plan," which emphasized "Using new energy vehicles as a breakthrough, strengthening independent innovation to establish new competitive advantages." It explicitly outlined and anchored China's plan to use new energy vehicles as a catalyst to surpass the Western traditional automotive powerhouses, breaking their dominance in internal combustion engine technology. This strategy is commonly referred to as the "corner overtaking strategy" in the Chinese automotive industry. [51]

The strategy is considered a success. In 2010, China's sales of new energy vehicles (NEV) were only 5,000 units. By 2015, the sales had surged to 331,000 units. Since 2016, China has consistently maintained its position as the world's leader in terms of the total stock of NEVs and annual additions. The annual compound growth rate of production and sales of NEV has consistently remained at around 50%. In 2020, China achieved a milestone with NEV sales reaching 1.367 million units, accounting for more than 50% of global market share. [52] [53]

Progress towards global leadership (2020–present)

Since 2020, the Chinese automotive industry has entered a phase marked by the maturation and advancement of technology among local manufacturers. As a result, there has been a notable increase in the market share held by local manufacturers within the domestic market. Additionally, many foreign brands have sought partnerships with Chinese automakers to capitalize on their technological advancements and supply chain capabilities.

However, the market dynamics in China also led to a significant overcapacity and underutilization. In 2023, China's light vehicle production capacity was 48.7 million units, with a capacity utilization rate of 59%. [54] This condition prompted many Chinese carmakers to increase exports and expand sales overseas. [55] Chinese industry dominance in electric car production and the increasing export volume prompted many countries, mainly from the West, to impose restrictions and increase scrutiny on Chinese-made vehicles.

Increasing share of local manufacturers

Yangwang U8, a luxury high-performance SUV from BYD Yangwang U8 005.jpg
Yangwang U8, a luxury high-performance SUV from BYD

According to the China Passenger Car Association (CPCA), in the first half of 2020, the market share of local brands in the Chinese automotive market was at slightly more than 30 percent, with German and Japanese brands then at around 30 percent and 25 percent respectively. Two years later, in October 2022, the share of local car brands in China reached 51.53 percent. It was the first time in history that the monthly share of local car brands in China exceeded 50 percent. In contrast, the dominance of foreign brands are gradually declining. The share of German brands fell to 19.25 percent and Japanese brands fell to 18.94 percent in October 2022. Throughout 2023, the market share of local brands has remained at around 50 percent. [56] [57] These changes were attributed to the rapidly increasing popularity of new energy vehicles, and the failure of foreign brands to catch up with the shift. [58]

Li Auto manufacturing plant in Beijing. The company took over the plant from Beijing Hyundai which have had decreasing sales. Li Auto Beijing Manufacturing Base (20240329140107).jpg
Li Auto manufacturing plant in Beijing. The company took over the plant from Beijing Hyundai which have had decreasing sales.

As a result of these market dynamics, some joint ventures that were already facing challenges during the era of traditional fuel-powered cars are further marginalized. In May 2023, Zhu Huarong, chairman of Changan Automobile, predicted that "in the next 2-3 years, it is conservatively estimated that 60%-70% of brands will face closure and transfer." [54] Between 2018 and 2023, eight joint venture manufacturers opted to withdrew the Chinese markets. Other joint ventures with significantly decreased sales are scaling back their production capacity by closing and selling their underutilized manufacturing plants. The remaining production capacity has been acquired by their Chinese joint venture partners. [54]

Phasing-out of foreign joint ventures/brands during 2010–2020s
BrandJoint ventureForeign manufacturerChinese manufacturerActive years
Fiat GAC FCA StellantisGAC2010–2022
Jeep
DS Changan PSA Changan2011–2020
Mitsubishi GAC Mitsubishi Renault-Nissan-MitsubishiGAC2012–2023
Soueast Fujian Motor2013–2020
Renault Dongfeng Renault Dongfeng2013–2020
Acura GAC AcuraHondaGAC2016–2022
Mazda FAW Car-Mazda MazdaFAW2005–2021
Suzuki Changan Suzuki SuzukiChangan1993–2018

Technological advantage

A Nio Power Battery Swap station in China. Nio pioneered the battery swapping capability. NIO Power Battery Swap.jpg
A Nio Power Battery Swap station in China. Nio pioneered the battery swapping capability.

Amidst the fierce domestic competition in China's domestic market, the world's largest automotive market, the competitiveness of the Chinese automotive industry chain continues to rise, gradually gaining a leading position in technology. The reputation of Chinese carmakers has rapidly shifted, from being seen as making low-quality knock-offs to becoming true competitors for Western brands. Chinese automakers have established the building blocks for future competitiveness in EV technology, software, digitalization, factor cost and supply chain areas. [59] China's domestic brands are also leading the market in the development and implementation of advanced assisted driving systems, capitalizing on their early-entry advantages in the electric and intelligent vehicle sector. [60]

"Reversed" joint ventures of western manufacturers

Dacia Spring, built and rebadged by Dongfeng, is one of the most popular EV in Europe. 2023 Dacia Spring 1X7A6325 (2).jpg
Dacia Spring, built and rebadged by Dongfeng, is one of the most popular EV in Europe.
Smart #1, built by Geely's joint venture with Mercedes-Benz. It is developed based on Geely's EV technology. Smart 1 003.jpg
Smart #1, built by Geely's joint venture with Mercedes-Benz. It is developed based on Geely's EV technology.

In the 1990s, Chinese automakers pursued Western technology through joint ventures. However, a reversal occurred in the 2020s, with Western manufacturers now seeking technological assistance from Chinese counterparts and invested in China through joint ventures. Several Chinese electric vehicle startups have leveraged their technological advantages, attracting investments from traditional Western automotive giants such as Renault-Nissan, VW, BMW, Mercedes-Benz, Toyota and Stellantis.

Toyota bZ3, Toyota's first EV sedan is powered by BYD's battery, motor and ECU. FAW-Toyota BZ3 For Guangzhou International Auto Show 2022 Part 2.jpg
Toyota bZ3, Toyota's first EV sedan is powered by BYD's battery, motor and ECU.
  • In 2017, Renault-Nissan and Dongfeng set up a joint venture call "eGT New Energy Automotive" to produce A-segment EV. [61]
  • In 2019, Mercedes-Benz announced the establishment of a joint venture partnership with Chinese automaker Geely. [62] Geely acquired 50% of Smart brand to produce EV based on Geely's SEA platform. [63]
  • In July 2019, Renault Group announced a capital injection of 1 billion yuan to acquire a 50% stake in JMEV, an EV subsidiary of Jiangling Motors Corporation. [64]
  • In 2020, BMW and Great Wall Motor invested RMB 5.1 billion on a joint venture, Spotlight Automotive, to produce the Mini brand EV using the technology of Great Wall Motor. [65]
  • Mini Cooper SE, developed by GWM and manufactured by Spotlight Automotive, a joint venture between GWM and BMW. Mini Hatch (J01) Cooper S IAA 2023 1X7A0724.jpg
    Mini Cooper SE, developed by GWM and manufactured by Spotlight Automotive, a joint venture between GWM and BMW.
    In 2020, Toyota announced its joint venture with Chinese manufacturer BYD. The joint venture was set to assist technical know-how for Toyota's EV development and supply the battery, electric motor and electronic control unit for Toyota's EV. [66] Toyota bZ3, the first electric sedan of Toyota, was built under the assistance of BYD with its technology.
  • In July 2023, Audi and SAIC announced their partnership that the EV platform from IM Motors, the brand of SAIC, will be introduced into Audi's electric models. [67]
  • In July 2023, Volkswagen Group announced its investment of $700 million in XPeng, the EV startup venture from China, for purchasing 4.99% stake of the company. The VW will collaborate with XPeng to develop two VW brand electric models for the mid-size segment in the Chinese market in 2026. [68] [69]
  • In August 2023, Geely and Renault decided to set a joint venture Horse with each entity holding 50% stake, to manufacture internal combustion engined (ICE) and hybrid powertrains for Renault, Nissan and Mitsubishi vehicle with Geely's technology. [70]
  • In September 2023, Ford and Changan announced to establish a new joint venture Changan Ford NEV, to produce and distribute Ford vehicles based on Changan's technology of electric vehicle. Changan holds 70% stake in the JV while Ford holds 30%. [71] [72]
  • In October 2023, Stellantis announced its investment to Leapmotor at the price of 1.5 billion euro, acquiring 20% of Leapmotor for the support of technology to built EV. [73]
"Reversed" joint ventures/investment of western manufacturers
YearForeign manufacturerChinese manufacturerReversed joint venture / collaboration
2017 Renault/Nissan Dongfeng
  • Producing Renault and Dacia brand EV based on Dongfeng's technology
eGT New Energy Automotive (25:25:50)
2019 Renault JMCG
  • 50% of JMEV acquired by Renault
  • Developing and producing JMEV and Mobilize brand EV
JMEV (50:37)
2019 Mercedes-Benz Geely
  • 50% of Smart brand acquired by Geely
  • Producing Smart brand EV by Geely
Smart Automobile (50:50)
2020 BMW Great Wall Motor
  • Developing and producing Mini brand EV by GWM
Spotlight Automotive (50:50)
2020 Toyota BYD
  • Provide technical support for Toyota and supply the BYD-made battery, electric motor and electronic control unit for Toyota's EV.
BYD Toyota EV Technology (50:50)
2023 Volkswagen XPeng
2023 Audi IM Motors
  • Rebadging or technology transfer for Audi vehicles
2023 Stellantis Leapmotor
  • 20% of Leapmotor acquired by Stellantis
  • Rebadging/technology transfer for Stellantis vehicles
  • Setup of joint venture to sell Leapmotor vehicles globally
Leapmotor International (51:49)
2023 Renault Geely
Horse (50:50)
2023 Ford Changan
  • Developing and producing Ford brand electric vehicles by Changan
Changan Ford NEV (30:70)

Suppression and restrictions from the West

Starting in 2020, the export of China's automobile came to the fore in global market. While the Chinese government has allowed Western manufacturers to rapidly expand and develop within its market since the inception of its Reform and Opening-up policy for more than four decades, Chinese automobiles' presence in world market is often perceived by the West as "invasion" and "threat", which caused alert and suppression by some western countries.

United States: During Donald Trump's presidency, the U.S. imposes a stiff 27.5 percent tariff for Chinese-made cars and has buttressed that with the protectionist tax credits of President Joe Biden's Inflation Reduction Act, which incentivized electric car and battery production in North America. In addition, hostility toward China from leaders in both political parties of U.S. make it difficult for Chinese carmakers to penetrate the U.S. market. [74]

In November 2023, a bipartisan group of U.S. lawmakers wanted the Biden administration to further hike tariffs on Chinese-made vehicles and investigate ways to prevent Chinese companies from exporting to the United States from Mexico to protect the U.S. automobile industry. [75] In December 2023, the U.S. Government rolled out rules for electric vehicle tax credits to suppress Chinese car imports. Any car using parts that comes from company which has more than 25 percent of board seats controlled by China will be disqualified for a $7,500 subsidy. [76] [77]

European Union: In September 2023, European Commission President Ursula von der Leyen announced EU would launch an anti-subsidy investigation into Chinese electric vehicles, claiming "Global markets are now flooded with cheaper Chinese electric cars. And their price is kept artificially low by huge state subsidies. This is distorting our market" [78] though the average price of Chinese EV in EU market is significantly higher than they are in domestic market China. Chinese government believes that the investigation proposed by the EU is a practice of pure "protectionism," to protect the EU's own industry in the name of "fair competition." [79]

India: Outside the Western world, India has been keen to reject investment plans from Chinese car manufacturers due to escalation at the India-China border and a tougher stance towards investments from China. [80] Great Wall Motor initially proposed an investment of USD 1 billion and had plans to start manufacturing in 2021 by buying a former General Motors plant, before cancelling its plans in July 2022 due to failure of obtaining regulatory approvals. In July 2023, BYD Auto was forced to cancel its investment plans worth USD 1 billion to produce cars in India due to scrutiny from the Indian government, noting "security concerns", despite 16-year presence of BYD Company in the country. [81] MG Motor India had struggled to receive clearance from the Indian Government to obtain capital from parent SAIC Motor, until a local company JSW Group acquired a 35% share in the company. [82]

Western automobile industry and academia: Carlos Tavares, the CEO of Stellantis, a well-known criticizer of Chinese automobile industry, called the influx of Chinese car-makers an "invasion" and warned the "possibility of geopolitical tensions" with China in 2022. [83] [84] However, after Stellantis invested 1.5 billion Euro to acquired stakes of Chinese startup venture Leapmotor in 2023, he defended Chinese automobiles presence in the global market, states "we have to adopt a global mentality. We do not support a fragmented world. We like competition. To start a probe is not the best way to tackle those questions" [85] and "Stellantis could benefit from "Leapmotor's competitiveness both in China and abroad". [86]

Professor Jim Saker, the president of the Institute of the Motor Industry in the UK, describe Chinese cars in UK as "invasion by trojan horse" and alleges there are "major security issues" with Chinese cars, that "paralyzing a country." [83]

The emergence of Software-Defined Vehicle (SDV)

AITO M9, designed and supplied by Huawei's hardware and software solution and sold through Huawei/HIMA showrooms AITO M9 in Grandview Mall, Guangzhou 20240214-A.jpg
AITO M9, designed and supplied by Huawei's hardware and software solution and sold through Huawei/HIMA showrooms

Since 2020s, by collaborating with Chinese tech giants companies, like Huawei, Baidu, DJI etc. Huawei's partnership with automobile manufacturers has taken the form of three models, the standardized parts supply model, the "Huawei Inside" (HI) model, and the Harmony Intelligent Mobility Alliance (HIMA). [87] [88] Baidu and DJI provide autonomous driving system and hardware to auto manufacturers. [89] [90] Qihoo 360 invested the Chinese EV startup company Hozon Auto. [91] Geely collaborates with Baidu to set up joint venture brands and acquired Chinese smartphone company Meizu to empower its Polestar and Lynk & Co brands with its auto OS and AR system. Xiaomi is the first and the only Chinese tech company that is directly involved in car manufacturing and operates its factory in Beijing. [92]

Involvement of Chinese technology industry in the automotive industry
Tech companyManufacturerCollaborating brandNote
Huawei Seres AITO Harmony Intelligent Mobility Alliance (HIMA). Huawei provides a complete set of vehicle solutions and participates in product definition, design, marketing, user experience, quality control and delivery. While the manufacturers are responsible for vehicle manufacturing.
Chery Luxeed
JAC
BAIC BluePark Stelato
BAIC BluePark Arcfox Huawei Inside (HI) model. Huawei provide full-stack smart car solution and Huawei's smart cockpit to car manufacturers. In this mode, Huawei empowers vehicle intelligence through the supply of both software and hardware, but does not participate in the design, development, and marketing of the vehicles.
Changan Avatr
Dongfeng Voyah, M-Hero
Baidu Dongfeng Voyah Baidu empowers Dongfeng's electric vehicle brand, Voyah, by equipping it with Baidu's Apollo autonomous driving system.
Geely Jidu Auto / Ji Yue Baidu and Geely setup two joint venture companies, Jidu Auto for automotive technology solution and Ji Yue for car manufacturing.
DJI SAIC-GM-Wuling Baojun DJI provides autonomous driving system for SGMW's Baojun brand.
Qihoo 360 Hozon Neta Investment
Xiaomi Xiaomi Auto Directly invest and involved in car manufacturing.
Meizu Geely Lynk & Co, Polestar Meizu provides auto OS called Flyme Auto OS, and AR system.

Green vehicles

A Roewe eRX5 electric car charging. New energy vehicles in China are distinguished by its light green license plate. Roewe ERX5 EV charging.jpg
A Roewe eRX5 electric car charging. New energy vehicles in China are distinguished by its light green license plate.

China encourages the development of clean and fuel efficient vehicles in an effort to sustain continued growth of the country's automobile industry (see Fuel economy in automobiles). By the end of 2007, China plans to reduce the average fuel consumption per 100 km for all types of vehicles by 10%. The proportion of vehicles burning alternate fuel will be increased to help optimize the country's energy consumption. Priority will be given to facilitating the research and development of electric and hybrid vehicles as well as alternate fuel vehicles, especially CNG/LNG.

Environmental standards

On March 10, 2008, Beijing became the first city to require light-duty vehicles to meet China-4 emission standard, which was equivalent to Euro-4. Beijing shifted its emission standards to the fifth-stage standards for light-duty and heavy-duty vehicles in January 2013 and August 2015, respectively. On 12 April 2016, the Ministry of Environmental Protection (MEP) released the proposal for light-duty China-6 standard.

Electric vehicles (EV) and fuel cell vehicles (FCV)

Due to serious air pollution problems and ever-increasing traffic, alternative-energy vehicle production is an area of strong focus for the Chinese government, and several NEV-friendly policies have appeared at the national and local level as a result. In many cities, free licenses — otherwise a significant expenditure for traditional vehicles — are provided for electric vehicle owners, along with exemptions for registry lotteries. These kinds of policies have created strong interest in new energy vehicles within China.

New energy vehicle sales between January 2011 and March 2016, totaled 502,572 units, of which, over 92% were sold between January 2014 and March 2016. These figures include heavy-duty commercial vehicles such as buses and sanitation trucks. These figures only include vehicles manufactured in the country as imports are not subject to government subsidies. As of March 2016, the Chinese stock of plug-in electric vehicles consist of 366,219 all-electric vehicles (72.9%) and 136,353 plug-in hybrids (27.1%). [93] [94] [95] [96] [97] [98]

As of December 2015, China is the world's largest electric bus market, and by 2020, the country was expected to account for more than 50% of the global electric bus market. [99] China also is the world's leader in the plug-in heavy-duty segment, including electric buses, plug-in trucks, particularly sanitation/garbage trucks. [100] [101]

Cumulative sales of new energy vehicles in China between 2011 and 2021 NEV cum sales China from 2011.png
Cumulative sales of new energy vehicles in China between 2011 and 2021

A September 2018 update by CNBC included a prediction that the market share of China's electric vehicles will grow by 40% in the short term and that China expected total annual sales of electric and gasoline-electric hybrid vehicles to be 2 million by 2020. [113] The government was encouraging the purchase of such cars with a short wait time for a new license plate and with government-backed discounts of up to 40% on electric vehicles. [114] In 2018, new-energy vehicles accounted for about 3% of China's new car sales; that was expected to increase to over 30% by 2030 according to an estimate by the Japanese Mizuho Bank. [115]

In October 2018, Tesla purchased land for the construction of an EV manufacturing plant in Shanghai's Lingang area. [116] [117] By then, VW had already begun construction of its EV factory, with a planned annual capacity of 300,000 SAIC-VW MEB platform vehicles, starting with three battery-electric vehicles and two plug-in hybrids. [118] [119] [115]

As of 2022, major electric vehicle players in the Chinese industry include BYD Auto, Tesla China, SAIC-GM-Wuling, GAC Aion, and Changan Automobile. These five companies held more than 50 percent market share combined. [120] Chinese brands also account for about half of all EVs sold globally. [121]

Policies

The Chinese Automotive Industry Plan, announced on the main website of China's central government, said China aims to create capacity to produce 500,000 new energy vehicles, such as battery electric cars and plug-in hybrid vehicles. The plan aims to increase sales of such new-energy cars to account for about 5% of China's passenger vehicle sales. [122] At the 2010 Beijing Motor Show, more than 20 electric vehicles were on display, most of which came from native automakers. As of May 2010, at least 10 all-electric models have been reported to be on track for volume-production. [123] The first mass-produced plug-in hybrid car (BYD F3DM), all-electric minivan (BYD e6) and all-electric long-range bus (BYD K9) are Chinese.

In 2009, the Chinese government implemented policies to subsidize the purchase of plug-in hybrid and electric cars and buses in 10 cities. The per unit subsidies for passenger cars ranged between RMB 4,000 to RMB 60,000. In ten major cities such as Beijing and Xi’an, Chinese EV producers worked closely with taxi companies to formulate operational solutions that would improve core battery technologies, such as implementing multiple shifts. [124]

On November 2, 2020, the Chinese government introduced the "New Energy Vehicle Industry Development Plan (2021–2035)" to achieve a sustainable automotive future with reduced emissions. This plan is part of supportive policies aimed at strengthening the EV industry. On 21 June 2023, China unveiled a significant RMB 520 billion (US$72.3 billion) tax incentive package spanning four years to provide tax breaks for new energy vehicles. It offers a complete exemption from purchase tax for NEVs bought in 2024 and 2025, resulting in potential savings of up to RMB 30,000 (US$4,170) per vehicle. From 2026 to 2027, the exemption will be halved and capped at RMB 15,000 (US$2,078). This initiative aims to stimulate automotive industry growth amidst sluggish auto sales. Regions like Shenzhen and Shanghai have also introduced local initiatives to support the NEV industry, including financial support and implementation plans to drive growth in their respective regions. [120]

Production and supply chain

In terms of electric vehicle production, China has a significant advantage over other countries. The Chinese automotive industry holds a dominant position in the electric vehicle supply chain, with more than 600,000 EV-related enterprises operating in the country as of 2022. [120] Some 75 percent of the world's lithium-ion batteries are made in China and the country's EV manufacturing facilities are close to the source these components. China also houses more than half of the world's processing and refining capacity for lithium, cobalt, and graphite, which are essential materials for making EV batteries. 70 percent of the global production capacity for cathodes and 85 percent for anodes are also hosted in China. [120]

China's strength in EV supply chain resulted in reduced costs in logistics, labor, and land management. Additionally, economies of scale are enabled by its large domestic EV market. China's EV manufacturing sector enjoys a cost advantage of 20 percent compared to Western markets such as those in the U.S. and Europe. [120] In January 2023, according to an executive of French automotive supplier Forvia, Chinese carmakers can build an electric vehicle (EV) for 10,000 less than European carmakers, an overwhelming cost advantage that will put pressure on European manufacturers in their home market. Chinese manufacturers are able to produce electric vehicles with lower cost by having lower research and development costs, lower levels of capital spending and lower labour costs than European rivals. [125] The major disadvantage of Chinese electric cars in Europe is the limited capacity and high cost of shipping, according to research group Schmidt Automotive. [126]

Dealerships

A Mercedes-Benz dealership in Zhengzhou 20210627 Zhengzhou Lei Shing Mercedes-Benz dealership.jpg
A Mercedes-Benz dealership in Zhengzhou

In China, authorized car dealership are called 4S car shops. The 4S represents sales (整车销售), spare parts (零配件), service (售后服务) and survey (信息反馈). In most cases, brand-name new cars can only be purchased from 4S shops.

The profit of car dealers in China is quite high compared to the rest of the world, in most cases 10%. This is supposedly due to the 'non-transparent invoice price' as announced by manufactures and to the premiums they charge for quick delivery. Due to the lack of knowledge for most customers, dealers can sell add-ons at much higher prices than the aftermarket. For new cars in high demand, a high premium is added for instant delivery or just placing an order.

There is no regulation by either the government or associations but some retailers are members of the China Automobile Dealers Association (CADA). [127]

Exports

Great Wall Motor exports some cars to Russia as knock-down kits, to be assembled in a Haval factory in Tula Oblast. Haval Motor Manufacturing Rus 02.jpg
Great Wall Motor exports some cars to Russia as knock-down kits, to be assembled in a Haval factory in Tula Oblast.
MG ZS is most exported Chinese car model in 2023, with a total of 251,000 units exported. 2022 MG ZS Exclusive T-GDi 1.0 Front.jpg
MG ZS is most exported Chinese car model in 2023, with a total of 251,000 units exported.

As of 2012, exports of Chinese automobiles were about 1 million vehicles per year and rapidly increasing. Most sales were made to emerging economies such as Afghanistan, Algeria, Brazil, Chile, Colombia, Costa Rica, Ecuador, Egypt, Iraq, Iran, Libya, Mexico, North Korea, Peru, the Philippines, Russia, Saudi Arabia, South Africa, or Turkey [129] where a Chinese-made automobile such as a Geely, Great Wall, or Chery sells for about half of what a comparable model manufactured by a multinational brand such as Toyota does. Cars made in China by multinational joint ventures are generally not exported. The quality of Chinese cars is increasing rapidly but, according to J.D. Power and Associates in 2012, it was not expected to reach parity with multinational manufacturers until about 2018. [130]

Most of cars manufactured in China are sold within the country; in 2011, exports totalled 814,300 units. [129] China's home market provides its automakers a solid base and Chinese economic planners hope to build globally competitive auto companies [131] [132] that will become more and more attractive and reliable over the years. [133] In 2017, the country exported roughly 891,000 vehicles. [134] In that year, the value of exports was nearly $70 billion in auto parts and $14 billion in cars, while total imports (parts and vehicles) totaled about $90 billion. [135]

In 2022, Chinese car exports reached 3.11 million units, ranking second worldwide. Domestic sales still accounted for the bulk of the 27 million units produced. Electric cars sales totaled 679,000. [4] In 2023, China overtook Japan, becoming the largest car exporter in the world. The increased export numbers contributed to the growing demand for electric cars. [5]

Unlike local Chinese manufacturers, joint venture manufacturers were reluctant to export their vehicles from China due to having to share 50% of the profit with its local partner, as opposed to keeping a full profit by exporting from fully-owned plants elsewhere. [136] Notable exceptions in the early era included Honda, which formed China Honda Automobile in 2003 to produce vehicles for exports to Europe, [137] and SAIC-VW that exported Volkswagen Polo to Australia in 2004. [138] As a result of excess production capacity, low cost of production, and the more accessible electric car supply chain, [139] [136] some joint ventures such as SAIC-GM, [140] Changan Ford and Jiangling Motors (since 2018), [141] Beijing Hyundai (since 2018), [142] Yueda Kia (since 2018), [136] Dongfeng Honda and GAC Honda (since 2023), [143] [144] and others started shipping vehicles from China to overseas markets.

Export volume of Chinese automobile industry [25] [145]
YearTotalPassenger vehicleCommercial vehicle
2010544,900283,000261,900
2011814,000476,100338,200
20121,056,100661,200394,900
2013977,300596,300381,000
2014910,400533,000377,300
2015699,400345,400354,000
2016708,000477,000231,000
2017891,000639,000252,000
20181,041,000758,000283,000
20191,024,000725,000299,000
2020995,000760,000235,000
20212,015,0001,614,000402,000
20223,111,0002,529,000582,000
20235,220,0004,450,000770,000
The top-10 most-exported manufacturers in China [146] [25]
Rank202320222021202020192018
1 SAIC 1,090,000 SAIC 906,000 SAIC 598,000 SAIC 323,000 SAIC 285,000 SAIC 238,200
2 Chery 925,000 Chery 452,000 Chery 269,000 Chery 114,000 Chery 96,000 Chery 122,900
3 Geely 408,000 Tesla 271,000 Tesla 163,000 Changan 82,000 Dongfeng 86,000 BAIC 77,000
4 Changan 358,000 Changan 249,000 Changan 159,000 Geely 73,000 BAIC 80,000 JAC 74,800
5 Tesla 344,000 Dongfeng 242,000 Dongfeng 154,000 GWM 70,000 Changan 68,000 Dongfeng 73,800
6 GWM 316,000 Geely 198,000 GWM 143,000 Dongfeng 69,000 GWM 65,000 Changan 61,400
7 BYD 252,000 GWM 173,000 Geely 115,000 BAIC 54,000 Geely 58,000 Volvo 55,800
8 Dongfeng 231,000 JAC 115,000 BAIC 81,000 Volvo 41,000 JAC 45,000 GWM 47,000
9 BAIC 190,000 BAIC 110,000 JAC 74,000 JAC 37,000 Volvo 44,000 FAW 43,600
10 JAC 170,000 Sinotruk 83,000 Sinotruk 54,000 Sinotruk 31,000 Sinotruk 40,000 Brillance 43,400

^ The figures of SAIC includes the SAIC-GM and SAIC-GM-Wuling

Production

Automotive industry production capacity of China by province [147]
RegionProduction shareProvincialProduction volume in 2023Capacity utilizationChinese brandsForeign brands
Yangtze Delta 28.1% Anhui 2,250,74367.0% Chery, BYD, Changan, Sehol, JAC, Jetour Land Rover, Jaguar
Jiangsu 1,837,25239.3% Li Auto, BYD, Ora, Roewe, MG, Maxus, Deepal, HiPhi Volkwagen, Kia, Mazda
Shanghai 1,810,67969.6% IM Motors, Roewe, Rising, BYD Cadillac, Audi, Tesla, Buick, Mercedes-Benz
Zhejiang 1,368,00529.7% Geely, Zeekr, Geely Galaxy, Lynk & Co, Polestar, Aion, Neta, Leapmotor, BYD Volkswagen, Volvo, Ford
Central 14.8% Hubei 1,585,29441.4% Voyah, M-Hero, Aeolus, Trumpchi, Tank Honda, Nissan, Infiniti, Buick, Chevrolet, Dacia
Hunan 1,009,72042.1% BYD, Denza, Geely, Beijing Volkswagen
Henan 811,83637.4% MG, Jetour, Roewe, BYD, Fangchengbao Venucia
Jiangxi 431,24426.3% BYD, Trumpchi, JMC Ford
Chuan-Yu9.6% Chongqing 1,698,58634.9% Changan, Avatr, Deepal, Oshan, Tank, Jinbei, AITO, Seres, Landian, Livan Ford, Lincoln
Sichuan 782,92443.3% Zeekr, Lynk & Co, Kaiyi Volvo, Toyota, Volkswagen, Jetta
Pearl River Delta 13.2% Guangdong 3,418,74965.5% Trumpchi, Aion, BYD, Xpeng, Beijing Toyota, Honda, Nissan, Audi, Volkswagen
Jing-Jin-Ji 9.8% Tianjin 1,075,24471.1% Haval Volkswagen, Audi, Toyota
Beijing 912,00345.6% Changan, Beijing, Xiaomi, Li Auto Mercedes-Benz, Hyundai
Hebei 542,21435.0% Haval, Wey, Lynk & Co Hyundai
Northeast 10.5% Jilin 1,450,02065.0% Hongqi, Bestune Volkswagen, Audi, Toyota
Liaoning 1,197,28564.9% Chery BMW, Nissan, Infiniti, Buick
Heilongjiang 83,87652.4% Volvo, Ford
Other14.0% Shaanxi 1,255,30785.1 BYD, Yangwang, Denza, Smart  
Guangxi 882,89236.8% Guangxi Auto, Forthing Chevrolet
Shandong 849,46936.5% BYD, Wuling Volkswagen, Audi, Cadillac, Buick, Chevrolet
Fujian 287,02144.5% MG Mercedes-Benz
Shanxi 164,18854.7% Geely Geometry  
Inner Mongolia 89,77589.8% Chery  
Guizhou 51,52916.6% Geely  
Xinjiang 40,78940.8% Trumpchi Volkswagen
Hainan 12,8712.9% Haima  
Yunnan 3,3873.4% JMEV  

See also

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<span class="mw-page-title-main">Automotive industry</span> Organizations involved with motor vehicles

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<span class="mw-page-title-main">SAIC Motor</span> Chinese automotive manufacturing company

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BYD Auto Co., Ltd. is the automotive subsidiary of BYD Company, a publicly listed Chinese multinational manufacturing company. It manufactures passenger battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), collectively known as new energy vehicles (NEVs) in China. It also produces electric buses and trucks.

<span class="mw-page-title-main">Hafei</span> Chinese car manufacturer

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Chang'an Automobile Co., Ltd.(CCAG) is a Chinese state-owned automobile manufacturer headquartered in Jiangbei, Chongqing. Founded in 1862, it is China's oldest automobile maker. It is currently the smallest of the "Big Four" state-owned car manufacturers of China, namely: SAIC Motor, FAW Group, Dongfeng Motor Corporation, and Changan Automobile, with car sales of 5.37 million, 3.50 million, 3.28 million and 2.30 million in 2021 respectively.

<span class="mw-page-title-main">FAW Group</span> Chinese state-owned automobile manufacturer

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China (Guangzhou) International Automobile Exhibition, also called Guangzhou International Motor Show or Auto Guangzhou, is an auto show held by Guangzhou Zhanlian Exhibition Service Co., Ltd, in November and December every year in the Guangzhou International Convention and Exhibition Center, China. It is not a recognized international show by the Organisation Internationale des Constructeurs d'Automobiles.

Guangzhou Automobile Group Co., Ltd. is a Chinese state-owned automobile manufacturer headquartered in Guangzhou, Guangdong. Founded in 1954, it is currently the fifth largest automobile manufacturer in China, with 2.144 million sales in 2021.

<span class="mw-page-title-main">JAC Group</span> Chinese automobile and commercial vehicle manufacturer

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<span class="mw-page-title-main">BAIC Group</span> Chinese automobile manufacturer

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<span class="mw-page-title-main">Electric vehicle industry in China</span>

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In China, the term new energy vehicle (NEV) is used to designate automobiles that are fully or predominantly powered by electric energy, which include plug-in electric vehicles — battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) — and fuel cell electric vehicles (FCEV). The Chinese Government began implementation of its NEV program in 2009 to foster the development and introduction of new energy vehicles, and electric car buyers are eligible for public subsidies.

<span class="mw-page-title-main">BYD Qin</span> Compact sedan

The BYD Qin is a compact sedan produced by BYD Auto since 2012. The Qin started out as the plug-in hybrid version of the BYD Surui, and was introduced in the Chinese market in August 2012. Currently, the Qin is available as battery electric vehicle, as a plug-in hybrid and previously as an internal combustion engine vehicle.

The Fujian Motors Group is based in the Fujian Province, China and was founded in 1992.

Dongfeng Sokon Automobile known internationally as DFSK Motor, was a joint venture between Dongfeng and Seres Group, formed on June 27, 2003. It is now fully owned by Seres.

<span class="mw-page-title-main">Seres Group</span> Chinese vehicle manufacturer

Seres Group (赛力斯集团股份有限公司) is a Chinese company founded in September 1986 with headquarters in Chongqing, China. Born as a manufacturer of components for household appliances and shock absorbers, it currently produces cars, motorcycles and commercial vehicles as well as shock absorbers and internal combustion engines. In 2022, the company renamed to Seres Group from Sokon Group.

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