More and more foreign companies are setting their sights on the new opportunities in China's new energy vehicle sector, continuously increasing their investment in China through project construction, research and development, and cooperation. 

 

Inside the production workshop of Audi FAW NEV Co., Ltd. in Changchun, Jilin, whole steel plates are swiftly transformed into various components by the stamping machine, while robotic arms operate flexibly and accurately on the assembly line. This is the first 9,100-ton super-large stamping production line in the Volkswagen Group system that is entirely designed and manufactured by Chinese companies. 

 

"The automotive industry is undergoing a transformation from traditional fuel-powered cars to new energy vehicles, and the Chinese market offers immense growth potential," said Shi Ruizhe, CEO of Audi FAW NEV Co., Ltd. "Audi is determined and willing to be part of this development process." 

 

The iterative updates of local technologies have given many foreign legacy car companies the impetus and direction for transformation in the face of competition, prompting them to actively adjust their strategies and seek win-win cooperation. 

 

BMW, which has been deeply rooted in China for many years, recently reached a partnership agreement with Huawei to deeply integrate the HarmonyOS ecosystem in China and introduce a range of digital services and diversified intelligent applications and functions. Mercedes-Benz is working hand in hand with its Chinese partners to drive electrification and digitization in the automotive sector. Tesla, in particular, has chosen China as the location for its first energy storage Gigafactory outside the United States, and the first batch of commercial energy storage batteries recently set sail from Shanghai Port to Australia onboard a cargo vessel.

 

"China's new energy vehicle market has tremendous potential, and the continuously improving business environment and well-integrated supply chains are key factors that drive foreign car companies to invest in China and establish a strong presence," said Gao Yuning, Vice Dean of the School of Public Policy & Management, Tsinghua University. 

 

From relying on "technology transfer for market access" in the era of fuel-powered cars to the current era of new energy vehicles, where annual production and sales have surpassed 12 million vehicles, China's automotive industry's innovative transformation has garnered global attention.  China has established a comprehensive and highly efficient industrial system, supplying 70% of battery materials and 60% of power batteries to the global market. 

 

Especially in recent years, the Chinese government has created a favorable development environment for the new energy vehicle market through policies such as purchase subsidies, support for charging infrastructure construction, and the establishment of intelligent connected vehicle demonstration areas. 

 

The National Development and Reform Commission recently announced that RMB 300 billion of ultra-long-term special government bonds will be allocated in 2025 to support the expansion of the consumer goods replacement program. The policy dividends have significantly unlocked consumption potential. 

 

Data from the Ministry of Commerce shows that in 2024, over 60% of purchases during the wave of replacing old vehicles with new ones were new energy vehicles.

 

Chinese consumers' openness to technological innovation and their focus on intelligent connected technology during the vehicle purchase process have provided foreign car companies with the direction for reform and the scent of new business opportunities.

 

"In the past, customers were more concerned about driving range and cost-effectiveness, but now they attach greater importance to the intelligent features of vehicles, such as intelligent cabins and automatic parking, which have become increasingly essential for consumers," said a salesperson at the Tesla Center in Changchun. 

 

According to data released by the China Passenger Car Association, the installation rate of Level 2 and above advanced driving assistance systems in new energy passenger vehicles reached 66.4% in the first half of 2024. 

 

Foreign car companies in China believe that continuously developing new models that cater to the needs and preferences of Chinese consumers is the key to future growth.  They are actively introducing intelligent driving technology, vehicle connectivity, and green travel solutions that align with Chinese consumer habits and preferences, aiming to achieve breakthroughs in the market.ign companies to increase their investment in China."

 

Audi's Global CEO, Gernot Döllner, emphasized that Audi is committed to integrating intelligence, connectivity, and sustainability into the brand's DNA, and will rapidly apply innovative technologies developed in China and jointly create new products with Chinese partners. 

 

FAW Group and the Volkswagen Group recently signed a strategic cooperation agreement. Starting in 2026, FAW-Volkswagen and JETTA brands will introduce 11 new models tailor-made for the Chinese market. "While covering all powertrain types, we are strategically focusing on the new energy vehicle sector to meet the evolving demands of Chinese customers," said Ralf Brandstaetter, CEO of Volkswagen Group (China). 

 

With a series of policies aimed at stabilizing foreign investment being implemented, foreign companies operating in China will gain access to more development opportunities. 

 

"From China, Link the Globe," Gao Yuning stated. "China's steady and open economic development provides the greatest confidence for foreign companies to increase their investment in China."