Global car manufacturers are facing severe challenges. American,\nEuropean, and Japanese brands are losing their dominance in the global\nmarket to Chinese competitors.<\/p>\n
Chinese automakers not only lead the electric vehicle (EV) industry\nbut also in battery technology, design, and software.<\/p>\n
In Indonesia, Chinese car brands sold 113,258 units out of a total of\n803,687 vehicles in 2025. These were predominantly BYD, Wuling, and\nChery EVs. The figure represents a doubling of sales compared to the\nprevious year, reflecting growing acceptance of Chinese brands which\nhave only entered the Indonesian market two or three years ago.<\/p>\n
China exports around seven million cars annually worldwide, nearly\nhalf of which are EVs.<\/p>\n
During Auto China 2026, the world\u2019s largest auto exhibition, BBC\nvisited factories in Beijing and Hefei. There, it found astonishing\nlevels of automation and rapid software development, forcing foreign\nbrands that once dominated global and Chinese markets to struggle to\ncatch up.<\/p>\n
\u201cWe have no chance against this,\u201d said Honda\u2019s CEO Toshihiro Mibe to\nJapanese media after visiting a highly automated Shanghai factory.<\/p>\n
Ford\u2019s CEO Jim Farley has also warned that Western carmakers are\n\u201cstruggling to survive\u201d as Chinese competitors aggressively expand\nglobally.<\/p>\n
After decades of investing in joint ventures with local partners to\nassemble vehicles, foreign automakers are now forced to reshape their\npartnerships to survive.<\/p>\n
\u201cThe biggest mistake made by developed nations is assuming this\ntransition is only about electric vehicles,\u201d said Bill Russo, a\nShanghai-based automotive analyst. \u201cIt\u2019s actually a battle over who will\nlead the next generation of mobility technology.\u201d<\/p>\n
Wheeled smartphones<\/p>\n
China\u2019s dominance extends beyond just car units.<\/p>\n
According to Rhodium Group, China is now the largest exporter in over\n315 product categories, up from 163 in 2016. Many of these relate\ndirectly to EV supply chains, including batteries, modular components,\nand manufacturing machinery.<\/p>\n
The International Energy Agency (IEA) estimates that producing a\nsmall EV SUV in China costs at least 30% less than in developed\ncountries, mainly due to lower battery costs and highly integrated\nsupply chains.<\/p>\n
This advantage stems from years of full government support. Rhodium\nestimates China has poured tens of billions of dollars into EV and\nbattery manufacturing in recent years. These subsidies, heavily\ncriticised by the EU and US for distorting markets, have enabled Chinese\nfirms to expand massively while cutting prices.<\/p>\n
Xpeng told BBC its current focus is on humanoid robots and flying\ncars alongside EVs.<\/p>\n
Intense domestic competition in China has also accelerated\ninnovation. Tech giants like Xiaomi, Huawei, and Alibaba are now\nproducing EVs, bringing consumer tech standards into the automotive\nindustry.<\/p>\n
\u201cThey [Chinese companies] are no longer racing against the West,\u201d\nRusso said. \u201cThey\u2019re now racing against each other.\u201d<\/p>\n
Modern vehicles increasingly rely on software for driver assistance\nand entertainment features. This innovation gives tech firms a\nsignificant edge that traditional automakers struggle to match.<\/p>\n
This shift is most evident at Xiaomi\u2019s EV factory on the outskirts of\nBeijing, where a new unit rolls off the production line every 76 seconds\non average. Xiaomi launched its first EV in 2024 and has already become\none of China\u2019s top-selling brands.<\/p>\n
Their main strategy is integrating vehicles with smartphones, apps,\nand smart-home ecosystems into a single system.<\/p>\n
Meanwhile, at Nio\u2019s Hefei factory, most production lines operate\nalmost fully automatically. BYD has developed ultra-fast charging\ntechnology that adds 400km of range in just five minutes \u2013 comparable to\nrefuelling at a petrol station.<\/p>\n
XPeng founder and CEO He Xiaopeng told BBC the company is\nprioritising humanoid robots and flying cars alongside EVs. \u201cIn the next\ndecade, all car companies will also be robotics firms,\u201d he said.<\/p>\n
Re-evaluation<\/p>\n
Foreign automakers have long relied on China to supply global\nmarkets. Tesla, for example, exports Shanghai-made Model 3s to Europe,\nwhile BMW sells China-assembled Mini Electrics abroad. However, many\nforeign brands are collapsing in China\u2019s domestic market. According to\ndata from consultancy Automobility, foreign brands\u2019 market share in\nChina\u2019s auto sector has plummeted from 64% in 2020.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/global-car-makers-admit-struggle-to-compete-with-china-1780320381", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }