Foreign automakers are rapidly expanding their China-focused strategies as the country becomes a primary innovation and production hub, exporting more locally manufactured vehicles to global markets under an "in China, for the world" model.
At the ongoing ninth China International Import Expo (CIIE) in Shanghai, an important move by Audi in China is drawing attention.
The Audi Innovation and Technology Center, set up with China's SAIC Motor, was officially inaugurated in Shanghai on Thursday. It will focus on AI-powered smart cockpits and next-generation advanced driving assistance, with development based in China rather than simply adapting mature overseas solutions for the Chinese market.
"China is the biggest and fastest evolving power market in the world. Audi (has been) in China for almost 40 years and we have a great foundation. But if you want to be successful in China, you have to be close to the customers and to the market," said Gernot Dollner, CEO of Audi AG.
Multinational automaker Jaguar Land Rover is also stepping up localized manufacturing and co-creation in China. This year, together with its partners in China, it has invested 3 billion yuan (about 450 million U.S. dollars) to upgrade its factory production lines for electrification and intelligence, with more than 1,100 fully automated robots put in place.
"We continue to dig deep into the Chinese market and push forward a new round of joint-venture cooperation. By fully combining it with China's strengths in electrification, intelligence and the supply chain, we are moving toward integrated local research and development and production in China, and also helping high-quality Chinese suppliers go global, for mutual benefit and win-win results," said Wang Yan, executive vice president of public relations and government affairs at Jaguar Land Rover China.
Many foreign automakers are investing still more in China. SAIC and General Motors announced in August a renewal of their partnership through 2047. In July, Guangzhou Automobile Group (GAC) and Honda renewed theirs through 2038.
"Joint ventures in China's auto industry have gone from the early exploration of 'introducing technology and selling domestically' to today's deep integration of 'joint research and development, co-creation and global export.' Cooperation between Chinese and foreign automakers has gone beyond simple production and sales and entered a new stage of iterative upgrading," said Yao Zhanhui, assistant director of the China Automotive Strategy and Policy Research Center.
Some foreign automakers are also selling cars made in China back to the home countries of their brands. Cars produced by Honda and its partners have entered the Japanese market, and Mini-brand cars made by BMW and Great Wall Motor in their joint venture have entered the British market. Experts say that making cars in China is becoming an important part of these automakers' global supply systems.
"When multinational automakers allocate global capacity and arrange product supply, they are giving their China bases more functions. Selling China-made cars worldwide, and even bringing them into the brands' home markets, reflects these companies' recognition of the quality, production efficiency and supply assurance capabilities of China-made products. Made in China is becoming a strong support for multinational automakers to raise their global competitiveness," said Zhu Yifang, chief expert at the China Automotive Technology and Research Center.
Volkswagen Group is further expanding its export of China-built vehicles, and cars of several of its brands made in China have recently begun to be exported to regions including the Middle East and Central Asia.
"We are bringing technologies developed in China to markets beyond China. China-developed solutions will increasingly contribute to the global portfolio of Volkswagen Group, particularly in markets across the Global South," said Ralf Brandstatter, chairman and CEO of Volkswagen Group China.
Foreign automakers embrace China as vehicle development hub for global sales
