Introduction

Introduction

For China's automotive industry and its major automakers, 2026 marks a pivotal turning point and a period of consolidation.

Just four days into 2026, the Chinese auto market has already been flooded with a flurry of significant news. It is clear that this year will be one of immense importance and fierce competition for the Chinese auto market.

Several leading automotive groups have already acknowledged this reality. Mainstream automakers such as Geely, Chery, FAW, Dongfeng, Changan, SAIC, BAIC, and GAC have sequentially released their New Year messages, serving as both a retrospective of the past year and a proclamation for the future.

Embedded within these messages are strategic declarations that not only convey confidence to the external world but also galvanize the internal workforce. They articulate the thought processes and strategic directions of China's automotive industry amidst the waves of electrification, intelligence, and globalization.

However, there is a broad consensus that China's automotive industry is at a historic crossroads. A comprehensive transformation, driven by technological innovation, shaped by global competition, and underpinned by profound corporate changes, has reached its most critical phase (a stage of 'striving' to overcome challenges).

01 The Industry Will Bid Farewell to Extensive Growth

In the eyes of China's automotive industry leaders, the auto market in 2026 will be far from smooth sailing. Instead, it will present a landscape where opportunities and challenges are simultaneously magnified, profoundly reshaping industry norms. 2026 will be a year of unprecedented intertwining of opportunities and challenges, marking a more complex and critical new stage of competition characterized by the 'next phase of intelligence' and the 'deep waters of globalization.'

Geely directly states that 'geopolitical fluctuations, supply chain restructuring, and climate crisis response' are dramatically reshaping the global economic and governance landscape, with the automotive industry, as a key integrator of modern industry, bearing the brunt. This suggests that competition in 2026 will extend well beyond the market and product levels, intertwining with great power rivalries, trade rule changes, and green standard competitions. Supply chain security and resilience, access to critical resources, and adaptation to diverse market regulations will pose more daunting challenges than mere cost control.

Meanwhile, after years of rapid growth and fierce 'involution' in the domestic market, the focus is shifting from 'quantitative' expansion to 'qualitative' leaps and structural optimization. Simple price wars are unsustainable, necessitating that companies find new avenues for value creation.

SAIC's mention of 'severe internal and external challenges' and BAIC's judgment that 'competition will only intensify, and the situation will be more challenging' accurately reflect this dual pressure. A clear consensus is emerging that the 'Popularization War' (a battle for widespread adoption) in the first half of electrification is nearing its end, while the 'System War' (a battle for comprehensive system integration) in the second half of intelligence is fully underway.

Geely's assertion on this matter is highly representative: Electrification has entered a brutal deep-water zone of comprehensive competition in 'cost, technology, and scale,' meaning that first-mover advantages may be quickly overturned. No single advantage is sufficient to ensure success; only companies that achieve balanced breakthroughs in cost control, core technology iteration, and scale effects will survive.

The more decisive battle lies in intelligence. The focus of competition is shifting from showcasing isolated functions to providing users with seamless, proactive services in 'scenario intelligence'; from pursuing vehicle computing power to competing in 'global connectivity' ecological capabilities that integrate vehicles, roads, clouds, networks, and maps.

The deep integration of AI is accelerating the evolution of the car's value core from a traditional 'transportation tool' to a trinity of 'mobile intelligent terminal, energy storage unit, and digital space.' Geely defines this transformation as a 'complete reconstruction of thinking and business models,' testing companies' new abilities to integrate hardware and software, link diverse ecosystems, and achieve data-driven continuous evolution.

Furthermore, the technological evolution path presents a diverse and pluralistic pattern with unprecedented iteration speed. In 2026, there will be no 'one-size-fits-all' technological route.

The pure electric route will continue to push the limits of range, charging, and safety; hybrid power (especially extended-range) will maintain an important market presence with its advantage of no range anxiety, driven by technological innovation; clean energy routes such as hydrogen and methanol, as explored by FAW, Dongfeng, and Geely, will accelerate their exploration in commercial vehicles and specific scenarios.

Notably, cutting-edge technologies represented by solid-state batteries have seen FAW, Dongfeng, and GAC establish pilot lines, accelerating the transition from laboratories to industrialization thresholds, potentially triggering a reshuffle in the competitive landscape. Behind all technological routes, AI serves as the underlying driving force, deeply integrating into the entire process from R&D simulation and production manufacturing to user experience.

Moreover, globalization has taken on new connotations, entering the stage of 'deep-sea operations.' The simplistic and crude model of product export trade has become obsolete. Chery's concept of 'In somewhere, For somewhere, Be somewhere' accurately summarizes the new requirements: companies must truly integrate into local markets and become responsible localized corporate citizens.

This requires Chinese automakers to address new challenges of 'regionalization, localization, and fragmentation' in 2026 by constructing sustainable competitiveness through technology licensing, localized R&D and production, deep cooperation with local partners, as exemplified by Geely in Malaysia and Chery in Spain, and even the localization fusion of cultural and brand values.

SAIC's advocacy for upgrading from 'product going global' to 'value chain going global' reflects this trend. Meanwhile, risks brought by geopolitics necessitate higher flexibility and risk resistance in global supply chain layout and market strategies.

It can be said that in the vision of mainstream automakers, 2026 is a convergence point of 'breaking the deadlock' and 'laying out the future,' as well as the 'first battle year' for 'comprehensive transformation and development breakthroughs.' The core characteristic of the situation is that uncertainty becomes the norm, competition dimensions are unprecedentedly complex, technological transformation drives the reconstruction of business essence, and global deep cultivation requires systematic capabilities.

02 Consensus Amid Industry Transformation

Reviewing the New Year messages from various automakers, despite differing expressions and focuses, there is a high degree of consistency in attention and strategic orientation on some core issues, collectively reflecting the common challenges and collective choices faced by China's automotive industry.

If past competition was centered around scale and cost, today's competition has thoroughly shifted to the realm of technological depth. All messages unequivocally place technological innovation at the strategic core. This is no longer a vague 'emphasis on R&D' but is concretized into clear technological roadmaps and displays of hardcore achievements.

Geely unveils its 'Shendun Golden Brick Battery, Thunder AI Hybrid, and Global AI Technology System,' and prospectively lays out the 'Heaven-Earth Integration' ecosystem; Chery constructs a 'super technology shelf,' emphasizing an engine with 48% thermal efficiency and the Carmind intelligent agent; FAW announces breakthroughs in over 300 key core technologies, delving into solid-state batteries and embodied intelligence; Dongfeng showcases its Mach Hybrid, solid-state battery pilot line, and self-developed automotive-grade chips.

Changan demonstrates its intelligence progress with the 'Tianshu Intelligent Brand' and L3 autonomous driving license plates; SAIC focuses on 'egalitarian-driven advancement,' promoting the commercialization of solid-state batteries and digital chassis; BAIC showcases its full-stack intelligence capabilities with 'BAIC Yuanjing Intelligence' and the landing of L3 licenses; GAC elaborates on the technological advantages of 'Xingyuan Extended-Range' and the progress of all-solid-state batteries.

This confident display of technological details reflects the output period of Chinese automakers' R&D systems after years of investment. Technological discourse power is becoming the core support for brand elevation, meaning that competition has delved into the deep-water zones of basic materials, chip architectures, and algorithm platforms.

Subsequently, brand elevation has evolved from a strategic goal into specific market achievements, user reputation, and brand value perception. Chery takes pride in being J.D. Power's 'Quintuple Champion' and ascending into the Fortune Global 500, explicitly proposing a transformation from 'selling products' to 'strengthening brands.'

FAW consolidates the leading position of 'Hongqi' in the domestic luxury segment; Geely reviews its journey from bidding farewell to low-price competition with the 'Ningbo Declaration' to accumulating brand thickness; Dongfeng aspires to establish a global image of 'safety, reliability, and high-end'; Changan vows to 'forge a world-class automotive brand'; BAIC stabilizes its position in the market above 300,000 yuan through Xiangjie; GAC aims to break into the high-end market through brands like Hyper and Qijing.

In reality, the underlying logic of brand elevation has changed. It is no longer merely about stacking configurations and materials but is a comprehensive manifestation of technological leadership, design aesthetics, service experience, cultural connotations, and user emotional connections. Companies are attempting to find their unique brand narratives and values to win user value recognition and emotional resonance, thereby transcending price wars and achieving sustainable premium capabilities.

Going global is another highly consistent proposition, but its connotation has undergone profound evolution. The era of simple vehicle export trade is passing, with 'global operation' and 'localization survival' becoming the keywords.

Changan proposes 'no base, no overseas,' pursuing localization and systematization with its Rayong factory in Thailand as a fulcrum; Dongfeng constructs a '2+4' layout, seeking breakthroughs in Europe and Southeast Asia; GAC covers 86 countries with the 'local for local' model; BAIC's footprint has also spread to over 130 countries and regions.

This transformation means that Chinese automakers must face complex global geopolitics, diverse cultural customs, and differentiated regulatory standards, and construct matching supply chain, R&D, manufacturing, marketing, and service systems. Globalization capabilities have become the ultimate test of an automaker's comprehensive strength.

Facing external upheavals, internal system capabilities have become the key to victory. The New Year messages from several automakers coincidentally elaborate on internal reforms that touch the very core. This may be a more difficult but more fundamental transformation than technological breakthroughs.

GAC's 'Panyu Action' involves relocating its headquarters to the frontline, introducing the IPD process, reshaping organizational structures, and implementing professional manager reforms, aiming to create a process-oriented organization with unified force. BAIC's 'Three-Year Leap Action' and 'Obeya Room' model break down barriers between R&D, production, supply, and marketing, pursuing extreme user response speed. Chery initiates the 'Year of Excellent Management,' undergoing global organizational reforms. FAW deepens T/P sequence and CEO system reforms. SAIC is in the crucial period of 'comprehensive deepening reforms.'

The core goal of these initiatives is consistent: to construct a more agile, user-centric, technology-driven, and highly collaborative new organization. Behind this lies a thorough declaration of war against traditional big company ailments. This system revolution will determine whether companies can translate technological advantages into market victories and sustain innovation in a rapidly changing environment.

Overall, through these eight New Year messages, we not only witness the prosperity and confidence of China's automotive industry but also sense deep-seated anxiety, urgency, and a determination to win.

Consensus guides the direction, while differences determine success or failure. In a transformative era full of uncertainties, these leading automotive groups recognize that future competition will be a comprehensive contest of strategic resolve, technological depth, organizational vitality, and ecological tension.

Editor-in-Chief: Yang Jing Editor: He Zengrong

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