Recently, Guangming Daily published an article highlighting the remarkable achievements of China's automotive industry.

According to data recently released by the European Automobile Manufacturers' Association (ACEA), in May 2026, monthly registrations of Chinese passenger cars across 31 major European markets surpassed those of Japanese automakers for the first time. Cui Dongshu, Secretary General of the China Passenger Car Association (CPCA), described this milestone as "a symbolic turning point driven by the structural transformation brought by the new energy vehicle (NEV) revolution."

Behind this milestone lies a series of impressive achievements. In 2025, China ranked No. 1 globally in three key areas: total automobile production and sales, new energy vehicle production and sales, and automobile exports. Today, China's automotive industry has firmly established itself as a global leader.

For decades, the global automotive landscape was dominated by Japan, Germany, and the United States. Japan built its reputation on lean manufacturing and fuel efficiency, Germany on engineering excellence and premium brands, and the United States on production scale and market strength. While China possessed the world's largest automobile market, it lacked the technological influence to match its market size. Today, however, a profound structural transformation is underway, with the global automotive industry increasingly turning its attention to China.

Why Is China Leading the Global Automotive Industry?

Choosing a New Path

While much of the world's automotive industry remained focused on conventional internal combustion engine vehicles, China began planning for the future of electric mobility decades ago.

From including electric vehicles in the national "863 Program" in 2001, to issuing successive industry development plans in 2012 and 2020, and now accelerating the formulation of a development plan for intelligent connected new energy vehicles under the beginning of the 15th Five-Year Plan, China has remained committed to this strategy for more than 20 years.

Despite technological uncertainties, significant investment requirements, and high risks, China continued to increase R&D spending, expand application scenarios, and build charging infrastructure nationwide. Today, these long-term efforts are closely aligned with the global transition toward green mobility.

This year, monthly electric vehicle sales reached record highs across 37 countries and regions worldwide. In the first quarter of 2026, Chinese new energy passenger vehicles accounted for more than 60% of the global market. From Bangkok to São Paulo, from Dushanbe to Berlin, Chinese vehicles are becoming an increasingly common sight on city streets around the world.

Overcoming Technological Challenges

China was once a follower in automotive technology, with many core technologies dependent on foreign suppliers. Today, however, breakthroughs in key technologies have transformed the country into a global innovation hub.

These advances include batteries capable of delivering driving ranges of up to 1,500 kilometers, AI-powered intelligent cockpit-driving integration systems, and advanced driver assistance solutions designed for Level 3 autonomous driving. From batteries and semiconductors to intelligent vehicle systems, China is driving innovation across the automotive value chain.

Alfonso Albaisa, Senior Vice President of Global Design at Nissan, noted that while traditional automakers typically require 36 to 55 months to design and manufacture a new vehicle, Chinese electric vehicle manufacturers can complete the process in just 24 months. China's pace of innovation continues to impress the world.

According to the 2026 Automotive Innovation Report released by Germany's Center of Automotive Management (CAM), BYD ranked first in the global automotive innovation rankings with 157 points, surpassing established manufacturers such as Volkswagen and Mercedes-Benz. It marks the first time since the evaluation began in 2005 that a Chinese automaker has taken the top position.

Building a Complete Industrial Ecosystem

China has established the world's most comprehensive new energy vehicle industrial chain, spanning upstream lithium resources, battery manufacturing, semiconductor development, and complete vehicle production.

According to the Global Automotive Supply Chain Competitiveness Report 2026, released in July, the number of Chinese companies among the world's top 100 automotive supply chain enterprises has increased to 20, surpassing the United States for the first time. This highly integrated industrial ecosystem provides a solid foundation for China's global leadership.

Meanwhile, China's automotive industry is evolving from simply exporting products to exporting entire industrial ecosystems.

Gotion High-Tech is investing US$1.3 billion to build a battery factory in Morocco. Chery has reached a cooperation agreement with Nissan, under which Nissan's Sunderland plant in the UK will manufacture passenger vehicles for Chery beginning in 2027. SAIC Motor is investing €200 million to establish its first European vehicle manufacturing plant in Spain, a project local officials have described as "the largest industrial investment in Galicia in decades."

China's automotive industry is no longer merely exporting vehicles—it is building manufacturing capabilities, supply chains, and long-term partnerships around the world, playing an increasingly important role in reshaping the future of global automotive cooperation.

Driving Toward a Shared Future

At a pivotal moment in the global energy transition, China has forged a new path toward sustainable development, overcome critical technological challenges, and achieved the historic transformation from a follower to a global leader in the automotive industry.

With every mile traveled, China's automotive industry is creating new opportunities—not only for itself, but for the world.

Source: Guangming Daily

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