Strategic Intelligence: China Impact in Automotive
Description
Strategic Intelligence: China Impact in Automotive
Summary
China has established itself as the largest automotive market, surpassing the US in vehicle sales in 2009 and Japan in vehicle exports in 2023. GlobalData projects light vehicle sales in China to exceed 27 million units in 2025, a feat only achieved twice before, in 2016 and 2017. This immense market size has driven demand for a diverse range of vehicles, as international automakers tailor their offerings to meet Chinese consumer preferences.Chinese manufacturers have taken over the home market, capturing 60% market share of domestic passenger car sales in 2024. But what is increasingly clear is that China’s auto industry is no longer competing within its borders, as exports surge into Europe, Southeast Asia, and Latin America.
China’s reach in automotive expands well beyond its borders
China has established itself as the largest automotive market, surpassing the US in vehicle sales in 2009 and Japan in vehicle exports in 2023. GlobalData projects light vehicle sales in China to exceed 27 million units in 2025, a feat only achieved twice before, in 2016 and 2017. This immense market size has driven demand for a diverse range of vehicles, as international automakers tailor their offerings to meet Chinese consumer preferences. In an unprecedented move, Audi co-developed the E5 Sportback with SAIC Motor without using Audi’s four rings logo, under a distinct China-only marque.
Meanwhile, Chinese manufacturers have taken over the home market, capturing 60% market share of domestic passenger car sales in 2024. But even with strong home sales and rising market share, China’s auto industry is undergoing a painful shakeout that will cull weaker plants and marginal EV startups, cut excess capacity and slow near‑term output; the result should be a leaner, more profitable group of OEMs, battery makers and suppliers.
What is increasingly clear is that China’s auto industry is no longer competing within its borders. As exports surge into Europe, Southeast Asia, and Latin America, pressure will mount on foreign OEMs not only to cut costs but also to adapt to Chinese-driven standards in areas like EV architecture and shorter development cycles. This global diffusion of China’s manufacturing model underscores that the competitive battle is no longer confined to market share in China, but to the future structure of the automotive industry worldwide.
Key Highlights
This report offers a comprehensive analysis of China's Impact on the automotive industry including -
Summary
China has established itself as the largest automotive market, surpassing the US in vehicle sales in 2009 and Japan in vehicle exports in 2023. GlobalData projects light vehicle sales in China to exceed 27 million units in 2025, a feat only achieved twice before, in 2016 and 2017. This immense market size has driven demand for a diverse range of vehicles, as international automakers tailor their offerings to meet Chinese consumer preferences.Chinese manufacturers have taken over the home market, capturing 60% market share of domestic passenger car sales in 2024. But what is increasingly clear is that China’s auto industry is no longer competing within its borders, as exports surge into Europe, Southeast Asia, and Latin America.
China’s reach in automotive expands well beyond its borders
China has established itself as the largest automotive market, surpassing the US in vehicle sales in 2009 and Japan in vehicle exports in 2023. GlobalData projects light vehicle sales in China to exceed 27 million units in 2025, a feat only achieved twice before, in 2016 and 2017. This immense market size has driven demand for a diverse range of vehicles, as international automakers tailor their offerings to meet Chinese consumer preferences. In an unprecedented move, Audi co-developed the E5 Sportback with SAIC Motor without using Audi’s four rings logo, under a distinct China-only marque.
Meanwhile, Chinese manufacturers have taken over the home market, capturing 60% market share of domestic passenger car sales in 2024. But even with strong home sales and rising market share, China’s auto industry is undergoing a painful shakeout that will cull weaker plants and marginal EV startups, cut excess capacity and slow near‑term output; the result should be a leaner, more profitable group of OEMs, battery makers and suppliers.
What is increasingly clear is that China’s auto industry is no longer competing within its borders. As exports surge into Europe, Southeast Asia, and Latin America, pressure will mount on foreign OEMs not only to cut costs but also to adapt to Chinese-driven standards in areas like EV architecture and shorter development cycles. This global diffusion of China’s manufacturing model underscores that the competitive battle is no longer confined to market share in China, but to the future structure of the automotive industry worldwide.
Key Highlights
- China’s impact in the automotive industry stretches across vehicle manufacturing, supply chains, electrification and batteries, and emerging automotive technology, including autonomous vehicles and software-defined vehicles.
- This report covers the key technology, macroeconomic and regulatory trends around the topic and dives into deeper industry analysis of China's domestic market forecast, global forecast for Chinese car brands, regional expansion of Chinese car brands, overcapacity, localization outside of China and China's lead in the automonous vehicle theme.
This report offers a comprehensive analysis of China's Impact on the automotive industry including -
- A technology briefing
- Technology, macroecnomic, and regulatory trends
- Leading companies in the China Impact theme
- Industry analysis and forecasts
- A thematic scorecard ranking companies in the China Impact theme
- As China's impact on the automotive industry continues to develop, several compelling reasons emerge for stakeholders to invest in this dynamic sector.
- This report is essential reading for senior executives as it outlines key trends and strategies that can help businesses navigate the evolving landscape of China's automotive impact and capitalize on emerging opportunities.
Table of Contents
41 Pages
- Executive Summary
- Thematic Briefing
- China has become a central force in automotive
- Vehicle manufacturing
- Batteries
- Autonomous vehicles
- Players
- Trends
- Technology trends
- Macroeconomic trends
- Regulatory trends
- Industry Analysis
- Market size and growth forecasts
- Domestic market sales forecast
- Global forecast for Chinese brands
- Sales forecast for regional expansion
- Overcapacity
- Localization outside of China
- China to lead the autonomous vehicle theme
- Timeline
- Companies
- Public companies
- Privatecompanies
- Sector Scorecard
- Future mobility sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1 Technology trends
- Table 2 Macroeconomic trends
- Table 3 Regulatory trends
- Table 4 Public companies
- Table 5 Privatecompanies
- Table 6 Glossary
- Table 7 GlobalData reports
- List of Figures
- Figure 1: ho are the leading players in the China impact theme?
- Figure 2: China now prefers domestic car brands
- Figure 3: Markets outside of China will gain importance as domestic demand slows
- Figure 4: Chinese brand volume by region
- Figure 5: China production by manufacturer
- Figure 6: BYD manufacturing plant expansion
- Figure 7: China is set to take the lead in the autonomous vehicles theme
- Figure 8: The China impact in automotive story
- Figure 9: Who does what in the future mobility space?
- Figure 10: Thematic screen
- Figure 11: Valuation screen
- Figure 12: Risk screen
- Figure 13: Our five-step approach for generating a sector scorecard
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