The automotive industry in Chinese mainland has been the largest in the world measured by automobile unit production since 2008.[1][2] As of 2024[update], China is also the world's largest automobile market both in terms of sales and ownership.
The Chinese automotive industry has seen significant developments and transformations over the years. While the period from 1949 to 1980 witnessed slow progress in the industry due to restricted competition and political instability during the social revolution era, the landscape shifted during the reform and opening-up period. Foreign investment and joint ventures played a crucial role in attracting foreign technology and capital into China. American Motors Corporation (AMC) and Volkswagen were among the early entrants, signing long-term contracts to produce vehicles in China. This led to the gradual localization of automotive components, and the strengthening of key local players such as SAIC, FAW, Dongfeng and Changan, collectively known as the "Big Four". The entry of China into the World Trade Organization (WTO) in 2001 further accelerated the growth of the automotive industry. Tariff reductions and increased competition led to a surge in car sales, with China becoming the largest auto producer globally since 2008.
In the 2020s, the automotive industry in China has experienced a rise in market dominance by domestic manufacturers, with a growing focus on areas such as electric vehicle technology and advanced assisted driving systems. The maturation of technology and supply chains has also led foreign carmakers to seek partnerships with Chinese manufacturers. However, the industry also faced heightened scrutiny and restrictions from Western countries, partly due to the China–United States trade war.
Since 2009, annual production of automobiles in China accounted for more than 32% of worldwide vehicle production, exceeding both that of the European Union and that of the United States and Japan combined.[3] Although the majority of vehicles produced in China are sold domestically, exports reached 3.11 million units in 2022, accounting for 11.5% of total production. This makes the country the world's second-largest car exporter.[4] In 2023, China overtook Japan and became the world largest car exporter.[5]
Automobile manufacturers in China mainly consists of local manufacturers and Sino-foreign joint ventures. Since 2018, the Chinese government began allowing foreign manufacturers to produce cars without forming joint venture with a local partner. The main industry group for the Chinese automotive industry is the China Association of Automobile Manufacturers (CAAM, Chinese: 中国汽车工业协会).
^"China emerges as world's auto epicenter - Politics- msnbc.com". MSNBC. 2009-05-20. Archived from the original on 19 May 2009. Retrieved 2009-05-25.
^"More cars are now sold in China than in America". The Economist. 2009-10-23.
^cycles, This text provides general information Statista assumes no liability for the information given being complete or correct Due to varying update; Text, Statistics Can Display More up-to-Date Data Than Referenced in the. "Topic: Automotive manufacturing industry in China". Statista. Retrieved 2022-11-19.
^"China closes in on Japan after surpassing Germany in 2022 car exports". South China Morning Post. 2023-01-15. Retrieved 2023-01-28.
^Hoskins, Peter (18 May 2023). "China overtakes Japan as world's top car exporter". BBC News.
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