While most of the cars manufactured in China are sold within China, exports – accounting for 11.5% of total production – reached 3.11 million units in 2022, making the country the world's second biggest car exporter.[4] 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.[5] China's home market provides its automakers a solid base and Chinese economic planners hope to build globally competitive auto companies[6][7] that will become more and more attractive and reliable over the years.[8]
The main industry group for the Chinese automotive industry is the China Association of Automobile Manufacturers (中国汽车工业协会).
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 are fast emerging as the major players with the expansion of Chinese automotive industry.
Central government controlled state-owned manufacturers
FAW (ChinaFirst Automobile Works Group Corporation, Chinese: 中国第一汽车集团有限公司) is a Chinese state-owned automotive manufacturing company headquartered in Changchun which is directly under the control of Central Government of China. Founded the 15th July 1953, It is the oldest car manufacturer of the People's Republic of China. Currently FAW sells products under there different brands including Hongqi, Jiefang, and Bestune. FAW also operates joint ventures with Toyota, Volkswagen and Audi.
Dongfeng (Dongfeng Motor Corporation, Chinese: 东风汽车集团有限公司) is a Chinese state-owned automobile manufacturer headquartered in Wuhan, Hubei, which is directly under the control of Central Government of China. Originally known as Second Automobile Works when it was founded in 1969, FAW and SAW were the two major manufacturers before the Reform and Opening-up of China. It current owns Voyah, M-Hero, Aeolus, Forthing, Dongfeng Nammi and operates joint ventures include Cummins, Honda, Nissan, Infiniti, and Stellantis (PSA Peugeot Citroën).
Changan (Chang'an Automobile Group, Chinese: 重庆长安汽车股份有限公司) is an automobile manufacturer headquartered in Chongqing, and is a state-owned enterprise controlled by China South Industries Group Corporation, an enterprise under the control of Central Government. It is the oldest automobile manufacturer in China which can be traced back to 1862 of Qing Dynasty. Changan designs, develops, manufactures and sells passenger cars sold under the Changan Auto, Deepal, Oshan and Kaicene brand. Changan operates joint venture companies include Avatr, Ford and Mazda.
Local government controlled state-owned manufacturers
SAIC (Shanghai Automotive Industry Corporation, Chinese:上海汽车集团股份有限公司) is a Chinese state-owned automotive manufacturing company headquartered in Shanghai. It is controlled by the Municipal Government of Shanghai City. SAIC sells vehicles under a variety of brands. Brand names include IM, Rising Auto, Maxus, MG, Roewe, Wuling, Baojun, Yuejin. Joint venture brands include Buick, Chevrolet, Iveco, Škoda, Volkswagen.
GAC (Guangzhou Automobile Corporation, Chinese: 广州汽车集团股份有限公司), is a Chinese state-owned automobile manufacturer headquartered in Guangzhou and controlled by the Provincial Government of Guangdong Province. GAC sells passenger cars under the Trumpchi and Aion brand operates foreign joint-venture with Honda and Toyota.
JAC (Anhui Jianghuai Automobile Group Corporation, Chinese: 安徽江淮汽车集团股份有限公司) is a state-owned enterprise based in Hefei, Anhui Province and controlled by the Provincial Government of Anhui. It owns the brands of JAC,JAC EV, Sehol.
Chery (Chery Automobile, Шаблон:Zh), a Chinese state-owned automobile manufacturer based in Anhui and controlled by the Municipal Government of Wuhu City. They have a foreign joint venture with Jaguar Land Rover for the production of Jaguar and Land Rover cars in China. They also sell cars under the Chery, Exeed, Jetour and iCAR brand.
Private owned manufacturers
BYD (BYD Auto,Шаблон:Zh), is an auto manufacturer based in Shenzhen, founded by BYD Company which are known for their batteries and electric buses. It is currently the biggest EV manufacture of the world. It operates brands include BYD, Denza, FangChengBao, Yangwang.
Geely (Zhejiang Geely Holding Group, Шаблон:Zh), is the one of the biggest privately owned automobile manufacturer headquartered in Taizhou, Zhejiang. Currently one of the fastest growing automotive groups in the world, Geely is known for its ownership of the Swedish luxury car brand Volvo Cars, its performance counterpart Polestar, and the British sports car company Lotus. In China, their passenger car brands include Geely, Livan, Lynk & Co, Zeekr, Volvo Cars, Polestar, Lotus, LEVC, Farizon, Radar, Ji Yue and operate joint venture with Proton and Smart.
GWM (Great Wall Motor, Шаблон:Zh), private company famous for manufacturing SUVs headquartered in Baoding, Hebei. Great Wall sells vehicles under the brands of Haval, Wey, Tank and Ora. It operate a joint-venture called Spotlight Automotive with BWM Group to produced electric Mini vehicle.
Seres (Seres Group, Шаблон:Zh), is a private manufacturer headquartered in Chongqing. It used to be famous for producing light commercial vehicles and budget passenger vehicles. Backed by Chinese tech giant Huawei, Seres is transforming to producing premium electric vehicle since 2021. It owns the brands of Seres, AITO, Fengon and DFSK.
Chinese major automobile groups global sales
(joint-venture brands excluded)[9]
Since the initiation of reform and opening-up in China, almost all major international automobile manufacturers have entered the Chinese market through joint ventures. China has improved its industrial capabilities by absorbing advanced foreign technologies and management practices. Since 2010s, some foreign manufacturers and brands gradually exited the Chinese market due to their lack of competitiveness, such as Suzuki, Mitsubishi, FCA (Jeep, Fiat, Chrysler), Renault, PSA (DS) etc.
Foreign manufacturers
Until 2017, Chinese automotive policy required that a foreign carmaker must form a joint-venture with a Chinese carmaker if the former plans to sell its electric vehicles, with the Chinese carmaker owning 51% of the joint venture. However, since 2017, the Chinese government had indicated that it would liberalize foreign control in the automotive sector, allowing full ownership by foreign companies.[11]
In 2017, Tesla has been allowed to set up a plant in Shanghai city, make it the first foreign automaker to open a wholly owned factory in China. In 2022, BMW and Volkswagen had acquired 75% stake in their joint ventures, which enables them to have the majority control of its Chinese joint ventures.
Tesla
Gigafactory Shanghai (currently the only fully foreign owned car manufacturer in Mainland China)
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[12])
Joint-venture manufacturers
Since the Reform and Opening-up in 1980s, Chinese government only allowed a foreign car manufacturer to partner with at most two Chinese car companies to produce cars locally. This restriction is to be loosened by 2022, and is already loosened for 'new energy' vehicle corporations. Volkswagen, for example, has already established three joint ventures (VW-JAC has been majority acquired by VW).
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.[13][14] 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.[15] 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, it 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.[16] 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.[17] In 2017, total vehicle production in China reached 28.879 million, accounting for 30.19% of global automotive production.[18] In 2023, China overtook Japan and became the world largest car exporter.[19]
Historic production data and milestones of Chinese automobile industry[20][21][22]
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.[25] 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.[26] Tung oil was also used during the war as a petroleum substitute.[27] 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.[28]
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.
The first Chinese production vehicles were trucks made by the First Automobile Works in 1956, called the Jiefang CA-10.[29] 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 tremendous 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 unitsШаблон:Sndprivate car ownership was virtually unknown at the time).[30]
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 US.[31] 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.[32]
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.[33] 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.[33]
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.[34]
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.[32] 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;[35] tooling may not have been allowed to slip past borders.
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.[36]
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-VWSantana, 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-VWAudi 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.[37]
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.[39][40]
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 fourteenfold. 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. [21]
In 2017, there were 300.3 million registered vehicles in China.[42]
Intensified competition
Файл:Haval H6 II (cropped).jpgHaval H6, best-selling SUV for 100 consecutive months, still holding the highest monthly sales record of 80,000 units in Chinese market. [43]
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. [44]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.[45]
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.[50]
The strategy is 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 globe market share.[51][52]
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 a true rival for Western brands. Chinese automakers have established the building blocks for future competitiveness in EV technology, software, digitalization, factor cost and supply chain areas.[53]
With the accelerated electrification of the Chinese automotive market, some joint ventures that were already facing challenges during the era of traditional fuel-powered cars are further marginalized. They are opting not to intensify their efforts in the Chinese market and instead choosing to exit the fierce competition. Their existing production capacity is being acquired by their Chinese joint venture partners, who are using it to expand production capacity for their own independent new energy vehicles. This phenomenon reflects the ongoing dynamic of gains and losses between different brand camps in the current Chinese automotive market.
Phasing-out of foregin joint ventures/brands during 2010-2020s
China's domestic brands are 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.[54]
As in the 1990s, Chinese automotive manufacturers sought western technology for joint ventures, a reversal occurred in the 2020s. Western manufacturers, began seeking technological support from Chinese manufacturers and rush to invest in China through establishing joint ventures. Dozens of Chinese EV startup ventures have raised with technological advantages which attracted the investment from traditional Western auto giants. Renault-Nissan, VW, BMW, Mercedes-Benz, Toyota and Stellantis.
In 2017, Renault-Nissan and Dongfeng decided to set up a joint venture call "eGT New Energy Automotive" to produce A-segment EV. [55]
In 2019, Mercedes-Benz announced the establishment of a joint venture partnership with Chinese automaker Geely.[56] Geely acquired 50% of Smart brand to produce EV based on Geely's SEA platform.[57]
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.[58]
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.[59]
In 2020, Toyota announced its joint venture with Chinese battery giant 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. [60]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.[61]
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.[62][63]
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. [64]
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%.[65][66]
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.[67]
"Reversed" joint ventures/investment of western manufacturers
Developing and producing Ford brand electric vehicles by Changan
Changan Ford NEV (30:70)
Suppression and hostilities 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 put a premium on car and battery production in North America. In addition, hostility toward China from leaders in both political parties of US make it difficult for Chinese carmakers to penetrate the U.S. market.[68]
In November 2023, a bipartisan group of U.S. lawmakers want 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 US automobile industry.[69]
In December 2023, the US 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.[70][71]
EU - 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",[72] 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."[73]
UK - Professor Jim Saker, the president of the Institute of the Motor Industry in the UK, describe the Chinese car in UK as "invasion by trojan horse" and alleges there are "major security issues" with Chinese cars, that "paralyzing a country."[74]
Western automobile industry -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.[74][75] However, after Stellantis invested 1.5 billion Euro to acquired stakes of Chinese startup venture Leapmotor in 2023, he defended Chinese automobiles presence in globe 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"[76] and "Stallantis could benefit from "Leapmotor's competitiveness both in China and abroad".[77]
Collaborating with Chinese tech giants companies, like Huawei, Baidu, and DJI etc., Chinese manufacturers are increasingly offering new advanced safety features, autonomous driving functionality, internet access, futuristic infotainment options, they are essentially evolving into an entirely new category – that of software-defined vehicles (SDVs).[78][79]
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).[80][81] Baidu and DJI provide autonomous driving system and hardware to auto manufacturers.[82][83]Qihoo 360 invested the Chinese EV startup company Hozon Auto.[84]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 only Chinese tech company that directly involved in car manufacturing and operates its factory in Beijing.[85]
Chinese tech companies' involvement in auto industry
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.
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.
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. Major cities like Beijing and Shanghai already require Euro-3 emission 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.
The Chinese Automotive Industry Plan, announced on the main Web site 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.[86] 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.[87] 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.
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. Шаблон:As of, 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%).[88][89][90][91][92][93]
Шаблон:As of, 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.[94] China also is the world's leader in the plug-in heavy-duty segment, including electric buses, plug-in trucks, particularly sanitation/garbage trucks.[95][96]
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.[97] 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.[98] 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.[99]
The country has a significant benefit over others. Some two-thirds 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. In October 2018, Tesla purchased land for the construction of an EV manufacturing plant in Shanghai's Lingang area.[100][101] 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.[102][103] Toyota Motor had already launched sales of an EV branded under Guangzhou Automobile Group; the two companies have a joint venture in China.[99]
Production
Automotive industry production capacity of China by province[104]
As of at least 2024, China is the world's largest market both in terms of automobile sales and ownership.[105]Шаблон:Rp
In China, authorized car dealership are called 4S car shops. The 4S represents Sales (整車销售 ), Spare parts (零配件), Service (售後服务) and Survey (信息反馈).
In most cases, brand-name new cars can only be purchased from 4S shops. For new cars in high demand, a high premium is added for instant delivery or just placing an order.
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.
There is no regulation by either the government or associations but some retailers are members of the China Automobile Dealers Association (CADA).[106]
Шаблон:As of, 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[108] 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.[109]
Most of cars manufactured in China are sold within the country; in 2011, exports totalled 814,300 units.[108] China's home market provides its automakers a solid base and Chinese economic planners hope to build globally competitive auto companies[6][7] that will become more and more attractive and reliable over the years.[8] In 2017, the country exported roughly 891,000 vehicles.[110] 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.[111]
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.[19]
Export volume of Chinese automobile industry[23][112]
Year
Total
Passenger vehicle
Commercial vehicle
2010
544,900
283,000
261,900
2011
814,000
476,100
338,200
2012
1,056,100
661,200
394,900
2013
977,300
596,300
381,000
2014
910,400
533,000
377,300
2015
699,400
345,400
354,000
2016
708,000
477,000
231,000
2017
891,000
639,000
252,000
2018
1,041,000
758,000
283,000
2019
1,024,000
725,000
299,000
2020
995,000
760,000
235,000
2021
2,015,000
1,614,000
402,000
2022
3,111,000
2,529,000
582,000
2023
5,220,000
4,450,000
770,000
The top-10 most-exported manufacturers in China[113][23]
↑Шаблон:Cite webCumulative global sales totaled over 1 million highway legal plug-in electric passenger cars and light-duty vehicles by mid-September 2015.
↑Шаблон:Cite webDownload EVS in China (full report). See Table 2: Chinas's EV Sales by Brand, 2011-2013, pp.19.
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