At the 2026 Beijing International Auto Show, BBC reporters visited major Chinese EV factories in Beijing, Hefei, and Shanghai, revealing a historic turning point in global automotive.
Once-dominant foreign brands now face sharp decline. Foreign automakers’ share in China dropped from 64% in 2020 to just 32% in 2026. German, Japanese, and American brands are under pressure, while luxury segments are shattered: Huawei’s million-dollar Maextro S800 now outsells combined Panamera and BMW 7 Series imports.
Overseas executives warn of existential threats. Honda’s president and Ford CEO publicly state Western automakers cannot compete with China’s speed in manufacturing and R&D. This is driving China’s unprecedented export surge — 7 million vehicles sold abroad last year, nearly half of them new energy vehicles.
Chinese automakers hold three core advantages:

A complete low-cost NEV supply chain (315 industrial products globally dominant, 30% cheaper than developed countries)
Ultra-automated factories (e.g., Xiaomi’s 76-second assembly line, BYD’s 5-minute fast-charging)
Deep software and intelligence integration from Huawei, Xiaomi, and others

Overseas firms are rapidly changing strategies. Volkswagen invested $700 million in XPeng’s autonomous driving and software; Stellantis partnered with Dongfeng for $1 billion, including importing BYD’s smart models to Europe. Toyota, Hyundai, and Ford have expanded their China R&D centers.
Yet not all moves succeed: Audi’s China EV suffered poor demand and heavy discounting; GM reported asset write-downs and 21% sales drop in China. Japanese brands lag in electrification and are losing ground in Southeast Asia.
With domestic overcapacity and price wars squeezing profits, China’s 700 million annual auto exports and rising trade barriers (EU 45%, US over 100%) are pushing brands to new markets. Analysts say this shift marks not just the EV era, but the rise of next-generation mobility technology — with China at the center.
Only brands willing to collaborate with Chinese partners will survive; others risk falling behind.