China’s rise in the global auto industry is reshaping the market. A sales analysis by Chosun Ilbo shows that China’s top two manufacturers, BYD and Geely Group, ranked eighth and 10th last year. BYD’s sales jumped 41.5% from the previous year, moving up two spots, while Geely Group increased sales by 22%, entering the top 10 for the first time. In contrast, other automakers struggled. Toyota Group sales fell 3.7%, Volkswagen Group 2.3%, and Hyundai Motor Group 1%. Companies more dependent on China took bigger hits, while Ford, which scaled back in China, and Renault, which exited the market, increased sales by about 1%.
While global car demand remains sluggish, Chinese automakers are growing in both domestic and overseas markets. They now hold over 50% of the Chinese market and are expanding into Europe and Southeast Asia, where German and Japanese brands have been strong. China’s rising influence in the global auto market is accelerating this shift. According to HMG Business Intelligence Institute, global car sales reached 84.27 million units last year, up 2% from 82.61 million in 2023. Of the 1.66 million increase, 650,000 units—nearly a third—came from growth in China.
Global automakers’ performance last year largely depended on their reliance on China. German brands, which generate about 30% of their revenue from China, saw sharp declines. Volkswagen’s China sales fell 9.5%, cutting its global sales by 2.3%. BMW (-4.1%) and Mercedes-Benz (-4%) also suffered due to weaker demand in China. Likewise, Honda’s China sales dropped 30% to 850,000 units, leading to a 4.6% decline in total sales.
Among the global top 10, only companies that scaled back or exited the Chinese market avoided sales declines. The Renault-Nissan-Mitsubishi Alliance saw total sales increase by 1.1% year-on-year, with Renault’s sales rising 1.3% to 2.26 million units after exiting China. Ford, which reduced its workforce in China by thousands, also recorded a 1.3% sales increase.
As domestic Chinese brands continue to gain strength, this trend is expected to intensify. According to the China Passenger Car Association (CPCA), sales of domestic brands in the first half of last year rose 17.8% year-on-year to 5.56 million units, capturing 57% of the market. Meanwhile, foreign brands experienced declines, with German brands down 6.2%, Japanese brands down 12.4%, and American brands down 19.2%.
Global automakers are increasingly troubled by falling sales. While they cannot afford to exit China, the world’s largest market and top EV consumer, growing investment risks are forcing strategic shifts. Many automakers are shifting focus on EVs in China while repurposing existing factories as export hubs. Volkswagen has decided to sell its internal combustion engine plant in Nanjing while expanding its EV R&D in the country. Last month, Toyota announced plans to build a Lexus EV plant in Shanghai, set to begin production in 2027 with an initial capacity of 100,000 units per year.
