Gasgoo Munich-From January to July 2026, China exported 6.14 million vehicles, surging 66.8% year-on-year, while auto parts exports reached $60.7 billion. Those figures are impressive on their own.
But for Wei Wenqing, executive deputy secretary-general of the China Association of Automobile Manufacturers (CAAM), the narrative is nuanced. While the "hard power" behind China's auto exports is formidable, the "soft power" still needs work. On September 10, at the 20th anniversary of the Automotive Talent Professional Committee under the China Talent Research Society, Wei mapped out the current state, landscape, and future of Chinese automotive globalization.
Image source: Automotive Talent Committee of China Talent Society (same below)
In terms of export scale and product competitiveness, Chinese automakers are moving at a clip. But once they enter overseas markets, new challenges begin to surface.
Hard Power: Rivaling Global Competitors
In dimensions like product strength, manufacturing capability, cost control, and accumulated new-energy technology, Chinese cars already have the muscle to compete on the same stage as global rivals.
The numbers for Chinese auto exports in recent years have been dazzling. China became the world's largest auto exporter in 2023. By 2025, export volumes hit 7 million units, and this year is poised to break the 10-million mark.
Domestic companies dominate the export tally. Data shows foreign and joint ventures—excluding SAIC-GM-Wuling—accounted for just 13.1% of exports from January to July 2026, down 1.4 percentage points from 2025. Yet Wei notes that the export strength of foreign and joint ventures shouldn't be underestimated. Starting this year, most foreign players, including Volkswagen and BMW, have mobilized to boost exports of their China-made vehicles.
Overseas capacity building is also accelerating. Chinese companies have acquired, built, or are building over 20 full-process vehicle plants abroad. By 2025, overseas production by Chinese automakers topped 1.5 million units, with most facilities established in recent years. In parts, 80% of China's top 100 suppliers have set up overseas bases covering more than 50 countries.
AlixPartners projects that Chinese automakers' annual overseas capacity—including operational and planned plants—will reach roughly 3.4 million units by 2030, nearly double 2025 levels. In contrast, European and American brands are facing capacity cuts and cost-reduction pressures globally.
As products and capacity go global, the competitive landscape is shifting noticeably. In 2025, Chinese brands claimed the top spot in global market share. Overseas, Chinese shares overtook Korean and American brands in 2024 and 2025, respectively.
This rapid rise is driven by a first-mover advantage in electrification and cost competitiveness from a complete supply chain. Meanwhile, the slower EV transition among Korean and American automakers opened a window for Chinese brands to overtake.
This growth is especially pronounced in emerging markets. Leveraging NEV products, economies of scale, and supply chain strengths, Chinese brands are expanding rapidly across most of these regions.
However, a top global share doesn't mean overseas operational capabilities are leading. Compared with Japanese and European brands, which have spent decades globalizing, Chinese automakers still lag significantly abroad.
In overseas markets, Japanese brands still hold over 25% share despite some slippage, while European brands remain stable above 10%.
Japanese brands began large-scale exports in the 1970s and 1980s, while European firms have an even longer history of expansion. Both have built comprehensive global systems spanning R&D, manufacturing, sales, and after-sales service, giving them a lead in brand recognition and localized operations.
The gap between Chinese brands and their Japanese or European rivals isn't in hard metrics like the product itself, but in the global operational systems forged over decades of transnational management. Chinese auto exports are growing fast, but building a truly global operation takes time to refine.
Soft Power Still Needs Work
This shows that hard power is just the entry ticket. The real test for Chinese auto exports lies in building soft power. Currently, Chinese brands face distinct shortcomings. Three critical challenges stand out: exporting the supply chain, exporting intelligent connected vehicles (ICVs), and improving brand efficiency.
Selling cars abroad on price and value is one thing; setting up local production is another. It requires navigating supply chain logistics, local hiring, regulatory compliance, and cultural friction. At the same time, low brand efficiency and weak industry concentration remain painful hurdles for the Chinese auto sector.
As export volumes swell, external headwinds are mounting. Geopolitical disputes, green and digital trade barriers, and intellectual property issues are all creating uncertainty for Chinese automakers' global expansion.
These issues may look different on the surface, but they boil down to one thing: Chinese automakers have proven they can sell products, but truly taking root and integrating into overseas markets remains a long journey.
Wei divides Chinese automotive internationalization into four stages: "bringing in," "going out," "walking in," and "going up."
"Bringing in" laid the domestic foundation. "Going out" is shipping cars overseas in bulk. "Walking in" represents deep integration into local industries—the intermediate stage of internationalization. "Going up" is the ultimate goal, meaning Chinese brands, standards, technology, and industrial influence gain worldwide recognition.
In his view, China has mastered "going out" and just stepped into "walking in." There is still a considerable distance to "going up"—and that is the biggest challenge ahead.
Achieving "going up" depends entirely on soft power. This involves everything: aligning with international regulations, improving trade and investment protections, building exchange platforms, establishing risk warning mechanisms, and fostering a distinct Chinese automotive industrial culture.
Building an industrial culture is the hardest part. Understanding of cultural soft power varies widely, and simply copying domestic operational methods won't work overseas. Automakers must respect local cultures and explore communication and management models that fit the local context.
Systems and culture ultimately rely on people. Wei noted that becoming a world-class auto powerhouse is like rebuilding the entire Chinese auto industry abroad. The gap between home and abroad is vast; internationalization requires more than just hiring more people—it demands a qualitative leap in talent capabilities. The industry urgently needs professionals with cross-cultural communication skills, knowledge of international rules, and a global vision.
Talent that understands overseas markets and global regulations, and can bridge domestic and foreign barriers, cannot be bought—it must be cultivated through long-term practice. A shortage of such talent, in turn, drags down the progress of soft power initiatives, from regulatory compliance to risk management and cross-regional operations.
In Wei's eyes, automotive internationalization is a super marathon. He projects that by 2035, China's auto industry will reach a medium level of internationalization, and by mid-century, it will have a shot at joining the ranks of the world's top automotive nations.
Because sales volume can be stacked up through product and capacity, there are shortcuts for that. But there are no shortcuts for building a global operational system, brand influence, or cross-cultural management capabilities.
