Editor's Note

The auto industry has navigated an extraordinary 2025, advancing steadily while promoting stability through proactive policies. These policies have effectively boosted consumption, unlocked incremental potential, strengthened endogenous growth drivers, and improved the competitive environment, giving enterprises a sense of gain. The industry has united to combat 'involution,' with companies boldly breaking new ground, experiencing both successes and challenges amid competition and cooperation. Focused on action and ecological co-construction, the auto industry has achieved refined development through innovation and orderly transformation.

Drawing lessons from the past to guide the future, Auto Business has launched the major feature 'Cover Story: Progress 2025 – Top 10 Annual Reviews in 10 Categories for the Auto Industry.' This marks the sixth consecutive year Auto Business has presented the 'Top 10 in 10 Categories' annual review for the auto industry.

This feature consists of 10 articles, covering 'Top 10 Annual Hot Topics,' 'Top 10 Annual New Policies,' 'Top 10 Annual Personnel Changes,' 'Top 10 Annual Quotes,' 'Top 10 Annual Brand Highlights,' 'Top 10 Annual Financing Highlights,' 'Top 10 Annual Events in Intelligent Connected New Energy Vehicles,' 'Top 10 Annual Supply Chain Highlights,' 'Top 10 Annual Events in Localization of China's Auto Industry Going Global,' and 'Top 10 Annual Events in the Global Auto Industry.' Today, we release the ninth article. Stay tuned.

In 2025, China's auto industry going global will enter a new phase: survival will no longer depend solely on sales volume and speed but on the ability to establish a stable, compliant industrial presence overseas and develop sustainable capabilities that withstand cyclical and policy changes.

China's auto industry going global is undergoing a fundamental shift: relying solely on product competitiveness and price advantages is no longer sufficient for long-term survival. Local manufacturing, local R&D, local supply chains, and even local brands are becoming new prerequisites.

In 2025, more and more Chinese automakers and supply chain companies are moving beyond exports, embedding themselves deeply into the industrial structures of target markets through joint ventures, technology investments, contract manufacturing, and system co-construction. From Southeast Asia to Europe, from Latin America to Russia, 'localization' is no longer optional but essential for survival. This wave of going global is no longer just about selling cars but about reorganizing the global auto industry.

 1

Chinese Automakers Collectively Restructure Overseas Localization Strategies

In 2025, several leading Chinese automakers have upgraded their overseas strategies to a new phase centered on 'localized system ecosystems,' marking a transition from product trade to in-depth global operations. Great Wall Motors, for example, has shifted from 'commodity exports' to building a 'comprehensive ecosystem for R&D, production, supply, sales, and service going global.' SAIC Motor has proposed the 'Glocal Strategy,' meaning 'global thinking, local action,' aiming to create localized system ecosystems and transition from product exports to standard exports. Chery Automobile emphasizes deep integration and win-win cooperation with local industries and societies, seeking a global layout of the entire supply chain. Meanwhile, BYD, Geely, and other companies are promoting the localization of technology, supply chains, and manufacturing capabilities by establishing overseas production bases, R&D centers, and joint ventures. This collective strategic shift fundamentally aims to address increasingly complex international market environments by building sustainable localized operational capabilities, transforming China's industrial advantages into lasting brand value and systemic competitiveness in the global market.

Auto Business Commentary

Chinese automakers' collective shift to 'systemic going global' marks their globalization advancing from the basic (primary) stage of 'product exports' to the advanced (advanced) stage of 'industrial capability and commercial ecosystem exports.' This is not merely a defensive strategy against trade barriers but a long-term approach to building complete value chains overseas, including R&D, manufacturing, and branding. It aims to solidify China's manufacturing and technological advantages into sustainable global brand equity and industrial influence.

 2

Chinese Auto Companies Transition from Rule Adaptation to Rule Co-Creation

In 2025, as autonomous driving, cybersecurity, and software updates become common regulatory focuses globally, China is participating more deeply in the work of the United Nations WP.29 (World Forum for Harmonization of Vehicle Regulations). Around key issues like autonomous driving systems, cybersecurity, and OTA management, Chinese institutions and industry players are more systematically engaging in international regulatory discussions, coordination, and technical validation, incorporating large-scale application experiences from the Chinese market into the global automotive regulatory evolution. Meanwhile, China's participation in the international regulatory system is extending from regulations to technical standard-setting. In 2025, international standard projects such as ISO 25354, ISO 25355, and ISO 11585-2, with deep involvement from Chinese experts, have entered review and advancement stages in working group meetings of the ISO Technical Committee on Road Vehicles. These standards focus on evaluation methods for driving assistance systems and testing frameworks for autonomous driving performance, marking China's transition from merely adopting international standards to substantially participating in building global automotive technical evaluation systems.

Auto Business Commentary

Localizing rules and compliance is the least visible yet most decisive aspect of China's auto industry going global. Local manufacturing addresses 'whether to land,' while embedding in international regulatory and standard systems determines 'whether to survive long-term.' As China's auto industry shifts from rule implementer to participant in rule discussions, validation, and even standard-setting, localization truly evolves from physical presence to institutional presence.

 3

CATL and Stellantis Form Deep Alliance in Europe

On November 26, 2025, CATL and Stellantis, the world's fourth-largest automotive group, officially broke ground on a battery mega-factory in Zaragoza, Spain, through their joint venture. With a total investment of €4.1 billion, this project is not only China's largest single investment in Spain but also received funding support from the EU and Spanish government. The factory, planned for an annual capacity of 50 GWh, will focus on producing cost-effective lithium iron phosphate batteries and is scheduled to commence production in March 2028. The Spanish Minister of Industry praised it as a testament to both sides' 'firm commitment to sharing technology and jointly building a green energy ecosystem in the era of electrification.' From an industry perspective, this collaboration holds dual strategic significance. For Stellantis, it is a key move by its new CEO to ensure core battery supply and advance electrification transformation.

Auto Business Commentary

This collaboration exemplifies a global strategy of 'technology for market access.' CATL exchanges its leading battery technology for Stellantis' European production capacity and market access, marking an upgrade from a simple supplier-customer relationship to a deep capital, technological, and manufacturing alliance. This not only circumvents potential trade barriers but also elevates China's industrial chain advantages from product exports to technology standards and manufacturing system outputs, reshaping Europe's local supply chains and signaling a shift in global supply chain dominance toward technology holders.

 4

Nissan Leverages Dongfeng's R&D System to Create China-Made Models for Global Markets

In 2025, Nissan Motor has taken a landmark step in its long-term collaboration with Dongfeng: upgrading China from a key sales market to a global R&D and export hub. The core of this strategy is fulfilling the commitment to 'in China, for China, and for the world,' planning to export new energy vehicle models developed in China globally. The collaboration quickly materialized. In June, both sides established a joint venture with a registered capital of RMB 1 billion dedicated to export operations, targeting annual exports of 100,000 units. The initial global models include the plug-in hybrid pickup Frontier Pro PHEV and the all-electric sedan N7, both debuted at the Shanghai Auto Show and designed/developed in China. More notably, Nissan's CEO publicly stated a willingness to 'integrate Dongfeng into Nissan's global production ecosystem' and explore sharing production capacity at global factories like its Sunderland plant in the UK to manufacture these China-led models.

Auto Business Commentary

Nissan's collaboration with Dongfeng marks a profound shift in the global automotive industry's value chain structure. Multinational giants now officially recognize China not just as a market but as a core hub for global R&D and manufacturing. By producing China-led models at global factories, they effectively reverse the value chain from 'technology import' to 'technology platform export,' providing a new paradigm for China's auto industry to participate in and even lead the next phase of global industrial division.

 5

Geely Binds Renault in Brazilian Market Through Platform Collaboration

In 2025, Geely and Renault Group's global strategic partnership achieved a critical milestone in the South American market, marking a deepening from capital ties to technology sharing and market co-expansion. On November 3, both sides signed a definitive agreement for Geely to acquire a 26.4% stake in Renault Brazil, becoming a minority shareholder. Subsequently, on November 18, the joint venture 'Renault Geely Brazil' officially launched at the Elton Senna Industrial Park in Brazil, announcing an investment plan of R$3.8 billion (approximately RMB 5.1 billion). The core of this collaboration is technological synergy and localized production. Immediate results included the sale of Geely's EX5 and EX2 electric vehicles through Renault's dealership network in Brazil. A deeper plan involves localizing two new models based on Geely's advanced GEA new energy architecture for launch in the second half of 2026. Additionally, the joint venture will co-create a new new energy technology platform, planning to launch a Renault-branded model based on it in 2027.

Extended Reading: Renault and Geely's 'Triple Leap' in Collaboration: Logical Reconstruction!

Auto Business Commentary

This collaboration marks a turning point for Chinese automakers from 'market for technology' to 'technology for market.' Geely uses its core GEA pure electric architecture as a strategic asset to exchange for Renault's local production capacity, channels, and brand equity in Brazil, achieving 'technology equity.' This is not merely a regional alliance but signifies that technology exports are now paralleling capital exports, forming a crucial approach for China's auto industry to participate in and reshape global value chains, offering a new paradigm for industrial cooperation.

 6

Contract Manufacturing Accelerates Localization of Chinese Brands

In 2025, partnering with international or local professional manufacturers for contract manufacturing has become a key strategy for Chinese automakers to accelerate globalization, aiming to enter target markets through a more flexible and efficient 'asset-light' model. Typical cases include GAC Group's collaboration with global automotive contract manufacturer Magna, utilizing Magna's high-standard European manufacturing base to produce models for the European market, aiming to swiftly gain quality trust and local identity in Europe. Similarly, in December, XPENG Motors announced a partnership with Malaysian auto parts manufacturer EPMB, with its subsidiary handling assembly of G6 and X9 (including extended-range versions) models in Malaysia, planned for sequential production in the first half of 2026 to rapidly establish local production. This 'ship-borrowing' contract manufacturing model enables Chinese brands to bypass the lengthy cycles, massive investments, and complex operational risks of building factories in unfamiliar markets.

Auto Business Commentary

Chinese automakers' adoption of contract manufacturing marks their globalization strategy entering a new 'asset-light experimentation' phase. This is not merely a risk-averse interim measure but a precise probe to swiftly acquire local production capabilities, compliance certifications, and channel trust in target markets at minimal cost. It upgrades from mere product exports to exporting brands and management standards, reflecting a pragmatic and essential aspect of China's auto industry's globalized operations.

 7

Chinese Auto Parts Cluster Embeds in Manufacturing Systems of Thailand and Other Southeast Asian Countries

In 2025, the number of Chinese auto parts suppliers in Southeast Asian markets like Thailand has surged, marking a systematic global expansion of China's new energy vehicle supply chain. Thai Ministry of Industry data shows that as of March 2025, the number of China-funded auto-related parts companies in Thailand reached 165, nearly tripling from 2017. This growth primarily stems from 'supply chain collaboration (collaborative) going global.' With over 20 Chinese auto brands like BYD and Great Wall establishing factories and initiating localized production in Thailand's Eastern Economic Corridor, major suppliers of batteries, motors, electric controls, and intelligent connected technologies such as CATL, Sunwoda, and SVOLT have followed suit by setting up production bases. Nikkei reported that Chinese parts offer cost advantages and are being considered for local production by automakers including Toyota, indicating a reshaping of regional supply chain dynamics.

Auto Business Commentary

This marks an upgrade in the release of China's auto industry advantages from vehicle exports to 'ecosystem exports of the entire supply chain.' Parts suppliers clustering to follow vehicle manufacturers overseas not only serve Chinese brands but also embed and even reshape the traditional Southeast Asian supply chains dominated by Japanese companies. This effectively replicates a 'China new energy industry sub-center' with cost and technological competitiveness in Thailand and other regions, significantly consolidating China's core and leading position in the global electric vehicle supply chain.

 8

Volkswagen Leverages 'China Efficiency' to Export Locally Made Models Globally

In November 2025, at the China International Import Expo, Volkswagen Group (China) announced plans to export more Volkswagen and Audi models produced locally in China to global markets, including Europe. This decision signifies China's upgrade from Volkswagen's largest single sales market to a crucial export hub in its global production network. The strategy stems from Volkswagen's pragmatic response to global competition and cost pressures, with its core being the systematic utilization of China's mature, efficient, and cost-effective manufacturing and supply chain systems to support its global electrification and intelligent transformation. German media summarized this shift as 'Chinawagen für die Welt' (Chinese cars for the world). As a symbolic move, FAW-Volkswagen achieved its first-ever vehicle export on September 23, 2025, shipping 554 Magotan and Sagitar models from its Changchun base, which launched in the Middle East in November.

Auto Business Commentary

Volkswagen's move marks a significant shift in multinational giants' operational logic: from 'in China, for China' to 'in China, for the world.' It systematically leverages 'China efficiency'—the globally leading manufacturing system and supply chain—as a cost and technological balancer for global competition. This is not merely a pragmatic business choice but an ultimate endorsement of China's auto industry evolving from a 'market' to a 'global industrial core base,' profoundly reshaping the geography of global auto production and trade.

 9

Russia's 'Scrap Tax' Policy Forces Localization

In 2025, Russia's policy adjustments targeting imported vehicles have become a pivotal variable reshaping its market landscape. The core is the substantial increase and continuous escalation of the 'recycling scrap tax' since late 2024, with Russia's Kommersant newspaper estimating tax hikes of 70%-85% for some models. This policy, combined with tariff increases and stringent local OTTC certifications, aims to curb gray customs clearance, protect local industries, and ultimately compel foreign automakers to localize production. The policy effects were swift, compounded by local high benchmark interest rates of 21% and inflationary pressures, leading to a 58% year-on-year plunge in China's auto exports to Russia in the first nine months (Russian Federal Customs Service data), with Russia slipping from China's top auto export market to third. The market complexity lies beyond simple trade protection; it reflects Russia's strategic intent to rebuild its local auto industry and assert market dominance after Western automakers' withdrawal. Facing challenges, Chinese automakers have diverged: some brands retreated, while others like Great Wall and Chery deepened localization to mitigate risks.

Zongheng Express Commentary 

The policy shift in Russia has reshaped market rules, signaling that the 'simple trade export' model for Chinese automobiles faces challenges. The threshold for market access has escalated from tariffs to mandatory local production, compelling automakers to make strategic choices: either invest heavily in assets and deeply integrate into the local industrial system or exit the market. This, in fact, propels the Chinese automotive industry to transition from 'product export' to a higher stage of 'industrial capability export.'

10

Chinese Enterprises Empowering European Legacy Brand Santana Through 'Reverse OEM' Model

In 2025, Chinese companies such as BAIC Group and Zhengzhou Nissan jointly invested 5 million euros to officially restart the Spanish legacy automaker Santana, which had been out of production for 14 years. This can be seen as an attempt by the Chinese automotive industry to enter a phase of 'technology and model export' on the global stage. The collaboration adopts a dual-track approach: on one hand, a new pickup truck for the Santana brand will be developed based on Zhengzhou Nissan's Z9 platform; on the other hand, BAIC Group will use its SUV models, such as the BJ40 and BJ30, as the core, providing key components for local assembly in Spain, with sales under the Santana brand in Europe commencing from mid-2026.

Zongheng Express Commentary 

This collaboration may represent an attempt by Chinese automakers to globalize using a 'reverse OEM' model. Instead of acquiring brands, they leverage their mature vehicle models and technology platforms as the core to revitalize and empower European legacy brands that have local market recognition but weak product lines. This cleverly bypasses the dual barriers of brand recognition and local production, transforming China's systemic efficiency into 'soft power' in the European market and providing a new pathway for industrial globalization.

Note: This article was first published in the 'Cover Story' section of the January 2026 issue of Auto Review magazine. Please stay tuned.

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