Foreign car manufacturers might be feeling overwhelmed, but they must face reality.

French car market share in China: 0.2%.

Korean car market share in China: 0.9%.

American car market share in China: 5.9%.

Japanese car market share in China: 9%.

German car market share in China: 12.1%.

Chinese domestic car market share in China: 69.5%.

Since Chinese autonomous automakers transitioned to new energy vehicles, the domestic automotive market has undergone a complete transformation in just five short years. In 2020, the market share of domestic vehicles was only around 35%, while foreign brands captured about 65% of the market. Moreover, the mid-to-high-end segment was almost entirely dominated by foreign brands, with domestic car sales largely limited to models priced below 150,000 RMB. Before 2020, the gap between domestic and foreign vehicles was even wider—any joint venture brand could achieve sky-high sales figures. For example, in 2015, Dongfeng Peugeot Citroën (a French joint venture brand) sold over 700,000 units in China. Yet, ten years later in 2025, French car sales had plummeted to just 42,561 units—a decline exceeding 16 times. According to data from the China Passenger Car Association, French car market share in China has now fallen to 0.2%.

Similarly, Korean cars have also experienced a sharp decline. Although Korean brands were once more popular in China, in 2016, Hyundai and Kia combined sold over 1.8 million units annually, reaching a peak market share close to 10%. By 2025, their annual sales had dropped to 464,000 units, with current market share falling below 1%, currently standing at approximately 0.9%. A common feature shared by French and Korean cars is that their sales began declining even before the rise of new energy vehicles.

American car market share has also declined rapidly. Brands like Ford, Buick, and Chevrolet used to enjoy high sales volumes, but their performance has deteriorated noticeably in recent years. Data shows that Changan Ford's retail sales in China fell below 100,000 units in 2025, Chevrolet sold fewer than 10,000 units, while Buick performed slightly better, still managing to sell over 400,000 units. Currently, American car market share in China is primarily sustained by Buick and Tesla.

Japanese car market share has also suffered significant losses. Once, Chinese consumers favored Japanese cars for their advanced engine and transmission technologies, product reliability, fuel efficiency, durability, comfort, and excellent value for money. Together, Toyota, Honda, and Nissan used to sell over 3 million units annually in China. Today, only Toyota remains competitive, selling 1.78 million units last year; Honda dropped to 645,000 units, and Nissan to 653,000 units. At its peak, Japanese car market share exceeded 24%, but it has now fallen to 9%, with new energy vehicle penetration rate even lower—only 5%.

Like Japanese cars, German car market share in China peaked above 24%, and in the luxury car segment, German brands accounted for over 90%—essentially dominating the market. Currently, German car market share has been halved, with some institutions estimating it now stands at just 12.1%. Today, Chinese domestic brands lead globally in the new energy vehicle market, both in sales volume and technology. Foreign automakers must accept this reality, whether they like it or not.

Compared to ten years ago, Chinese domestic vehicles now completely outperform foreign brands in the premium segment. In the SUV market priced between 200,000 and 300,000 RMB, BBA (BMW, Mercedes-Benz, Audi) cannot match the Li Auto i6 and Yu7. In the 300,000–450,000 RMB SUV segment, neither the Mercedes-Benz GLC nor the Audi Q5L nor the BMW X3 can surpass the NIO ES8 or the Huawei-WeChat M8. In the luxury SUV market averaging 500,000 to 600,000 RMB, Zeekr 9X and the Huawei-WeChat M9 secured first and second place in sales. For ultra-luxury sedans priced above 1 million RMB, even BBA and Porsche are outperformed by Zunjie. In the sedan market, Mercedes-Benz, BMW, and Audi’s E-Class and 5 Series remain relatively strong, but the 3 Series and 4 Series can no longer compete with the SU7. In the non-luxury mid-size sedan segment, domestic brands are aggressively capturing market share previously held by Volkswagen and Japanese brands. In short, just six or seven years ago, domestic cars priced above 150,000 RMB were virtually ignored. Now, domestic vehicles priced above 200,000 RMB are selling exceptionally well. It’s only a matter of time before Chinese independent brands fully dominate the mid-to-high-end automotive market.

Original source: toutiao.com/article/1862427287267340/

Disclaimer: This article represents the personal views of the author.