Volkswagen, GM, and Nissan Embrace Chinese Tech in Bid to Regain EV Market Share

Over a dozen new electric vehicle models from international brands showcased at Auto Shanghai incorporate the most recent Chinese innovations in batteries, digital cockpits, and autonomous driving technology.

Foreign carmakers from
Volkswagen
General Motors (GM) and Nissan are countering in Mainland China with the introduction of their latest electric vehicle (EV) models during this event.
Auto Shanghai
trade show, following the loss of their market share to local competitors in the globe’s biggest car market.

The automobile manufacturers are counting on
Chinese EV technologies
To enhance their offerings by making them “more electric and smart,” allowing for increased production and delivery rates, as well as to close the gap with domestic brands that have captured over 90 percent of the electric vehicle market in the last ten years.

Over a dozen new electric vehicle models showcased by major international automakers at the expo highlighted cutting-edge Chinese innovations such as batteries, advanced digital instrument clusters, and early-stage self-driving capabilities. This tradeshow, the biggest in the world for this industry, commenced on April 23 and wraps up on Friday.

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“They still have strong interest in this market [as] there is no alternative to the Chinese market,” said Carlo Diego D’Andrea, chairman of the European Union Chamber of Commerce’s Shanghai chapter. “The things that [they] can do is keep investing and try to be part of the success story.”

Foreign manufacturers including VW, GM, Toyota and BMW have been losing their market share to domestic rivals since 2020 as Chinese consumers embrace pure-electric and plug-in hybrid cars from
BYD
,
Nio
, Li Auto, and XPeng as part of state initiatives to promote clean energy and cut down emissions.

Chinese electric vehicle manufacturers experienced rapid growth, driven by governmental support through subsidies and consumer openness to adopting advanced technology. This allowed them to surpass international competitors in both production capabilities and design prowess. According to data from the China Passenger Car Association, the market share of foreign automobile brands dropped to 40 percent in 2024 from 50 percent in 2023.

A decrease in demand for imported-brand automobiles—primarily gasoline-driven models—could result in excess capacity amounting to approximately 10 million units and cause annual profit losses of up to $20 billion in China, as stated in a report released by the Swiss financial institution UBS previously.

Several prominent international automakers have shown an unprecedented commitment to integrating Chinese technology and research and development (R&D) into their vehicles,” stated UBS analyst Paul Gong during a recent press conference in Shanghai. “In the long run, we can expect these automotive companies to differentiate themselves based on their adoption of Chinese R&D, with some gaining competitive advantage over others who choose not to engage with China’s technological advancements.

International brands are leveraging domestic electric vehicle technologies through various means: utilizing the platforms provided by their joint-ventured collaborators, recruiting local engineers for developing new electric vehicle models, establishing fresh research and development units within China, and partnering with indigenous tech providers to advance autonomous driving capabilities.

Volkswagen displayed its ID. EVO all-electric SUV, which draws inspiration from Xpeng’s G9 model. In 2023, the German automaker invested $700 million for a 5 percent stake in the Chinese company Xpeng located in Guangzhou. As part of their collaboration, Volkswagen engaged with its partner to create medium-size battery-operated cars branded under VW’s label as they aim to increase their presence in China’s growing electric vehicle sector.

In the previous year, Volkswagen’s operations in China fell behind those of BYD, which holds the title as the global frontrunner in electric vehicle shipments based on deliveries. This shift occurred following a decrease in VW’s sales by 9.5%, totaling 2.93 million vehicles. Since initiating local partnerships with SAIC Motor and FAW in 1984, Volkswagen had maintained its position as the top player in the Chinese automotive market until this change.

General Motors’ Cadillac showcased its Vistiq electric sedan, featuring end-to-end urban navigation on autopilot through an algorithm supplied by a Chinese company, according to a Deutsche Bank research report issued on April 25. The automaker also mentioned that Buick will adopt the identical technology for use in China.

Deutsche Bank further noted that Nissan, Toyota, Honda, Mercedes-Benz, Audi, and BMW have introduced new electric models incorporating Chinese technology.

Nissan has announced the pricing details for its latest N7 sedan equipped with an initial version of an autonomous driving system. Priced from 119,900 yuan ($16,494), this all-electric intelligent vehicle matches the starting price of XPeng’s popular Mona M03 model within China’s thriving market for purely electric sedans.

The overseas automakers are poised to regain some devoted clients in China,” stated Phate Zhang, who founded the Shanghai-based electric vehicle data company CnEVPost. “However, these new models won’t attract many buyers unless they come with attractive prices. Today’s local consumers tend to be very budget-minded because of the pessimistic economic forecast.

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