Gasgoo Munich- In 2026, China’s auto industry is undergoing a deep adjustment, shifting from volume-based competition to a battle for value. Domestically, competition has intensified as the price war ripples through the supply chain, squeezing corporate profitability. Yet globalization is accelerating, with exports rising and Chinese automakers moving beyond simply shipping products to competing on brand, technology, and supply chain capabilities. Facing the high barriers of mature markets like Europe—where brand recognition, technical standards, and systemic capabilities are paramount—the industry urgently needs to leap from "scale leadership" to "value enhancement."
At the same time, the intelligence revolution is introducing new variables. As artificial intelligence penetrates the sector, the evolution of software-defined vehicles is deepening. Competition is extending beyond traditional hardware capabilities into new areas such as data, algorithms, software ecosystems, and smart experiences. Frontier technologies such as embodied intelligence are also emerging as key directions for exploring the future form of the automobile.
Against a backdrop of industrial transition and technological shifts, finding new growth drivers and building differentiated competitive advantages has become critical for the industry's next phase. To that end, the Gasgoo Automotive Research Institute hosted a mid-year closed-door salon focused on evolving trends, technological breakthroughs, and market opportunities. Combining the latest research with industry practice, the event gathered supply chain partners to discuss how the auto sector can navigate cyclical changes and identify new avenues for growth.
Welcome Remarks
Gu Xiaoying, partner and executive vice president of Gasgoo Auto, detailed the group's latest business layout and future direction. She noted that the event centered on two main pillars: thematic presentations and targeted discussions. The Gasgoo Research Institute team focused on market trends, global expansion, electrification, and intelligence, using breakout sessions to facilitate deeper communication among industry partners.
Gu explained that Gasgoo has evolved from an automotive supply chain service platform into Gasgoo Group. While continuing to develop the auto sector, it is expanding into two new tracks: robotics and integrated circuits. The robotics business focuses on connecting industrial scenarios and empowering the auto supply chain with technology, while the IC division builds open exchange platforms through industry forums. Meanwhile, Gasgoo Group is advancing its global layout, refining overseas service networks, and upgrading products like "Global Frontier Tech Intelligence" to help Chinese automotive and industrial innovations reach the world stage.
Gu Xiaoying | Partner and Executive Vice President, Gasgoo Auto
H1 2026 Market Summary and Future Outlook
Dong Jing, a market analyst at the Gasgoo Automotive Research Institute, stated that the first half of 2026 experienced distinct structural differentiation in China's auto industry, set against a backdrop of macroeconomic pressure and accelerating transformation. Domestically, competition intensified, channel inventories rose, and profitability came under strain. Conversely, the export market maintained high-speed growth, with the advantages of new energy and intelligent technology further unlocking new opportunities for Chinese automakers to expand.
In terms of market performance, the first half brought overall pressure, yet the shift to new energy deepened. Pure electric models gained further share, pushing NEV penetration rates above those of traditional internal combustion engine vehicles. At the same time, competition is extending into mid-to-high price ranges. While segments like large six- and seven-seat SUVs are growing rapidly, they are also entering a phase of intensified rivalry. On the export front, Chinese automakers are accelerating the shift from shipping complete vehicles to localized operations, building global competitiveness through overseas factories and ecosystem partnerships.
Dong noted that the auto industry will remain in a phase of total volume adjustment and structural restructuring. Automakers must regard globalization as a new growth curve and accelerate local layouts overseas. Simultaneously, they need to improve profitability by optimizing product structures, upgrading brands, and expanding aftermarket businesses—effectively shifting from scale competition to value competition. Over the next few years, market share for domestic brands and NEV models is expected to continue rising, with intelligence and electrification serving as the core engines driving the industry forward.
Dong Jing | Market Analyst, Gasgoo Automotive Research Institute
From "Selling Cars" to "Operating Ecosystems" — How Chinese Automakers Are Breaking Through in Europe
Chen Weiwei, a senior analyst at the Gasgoo Automotive Research Institute, stated that Europe has become a key strategic market for Chinese automakers' global expansion. However, its complex market structure, consumer habits, and compliance requirements pose significant challenges to localization capabilities. In recent years, Chinese car exports to Europe have grown steadily. As hybrids and plug-in hybrids become new growth drivers, Chinese brands are strengthening their competitiveness in Europe, putting market share pressure on traditional European automakers.
Chen emphasized that entering Europe requires more than simply replicating domestic competition models; automakers need differentiated strategies tailored to local conditions. Geographically, companies should expand their presence in mature markets like the UK, Italy, and Spain, as well as strategic markets like Germany and France. In terms of product, focus should be placed on growth segments like B- and C-segment SUVs, while fully accounting for European users' concerns regarding price, quality, financial leasing, and residual value.
In practice, accelerating localization in Europe requires comprehensive adaptation across products, services, and manufacturing systems. This includes enhancing vehicle compliance with local regulations and usage scenarios, optimizing spare parts supply and after-sales systems, and selecting the right path—be it exports, contract manufacturing, capacity partnerships, or company-built factories—based on market scale. Only by transitioning from "exporting products" to "exporting systems" can Chinese automakers establish a lasting competitive edge in Europe.
Chen Weiwei | Senior Analyst, Gasgoo Automotive Research Institute
Frontier Insights from 2026 WAIC
Wang Xianbin, partner and vice president of the Gasgoo Automotive Research Institute, shared insights on trends in artificial intelligence, embodied intelligence, and the robotics industry. He stated that as AI technology evolves, industrial competition is moving beyond large model capabilities into computing infrastructure, vertical applications, and embodied intelligence. Robots, humanoid robots, and AI terminals are becoming key directions for industrial innovation. Currently, China has formed a relatively complete AI industry chain covering computing power, algorithms, data, and applications, showing strong advantages in the commercialization of embodied intelligence and autonomous driving.
Wang pointed out that the humanoid robot industry is still in the early stages of commercialization. Current applications are concentrated in research, exhibitions, and warehousing and logistics. To reach widespread commercialization, the industry must break through key bottlenecks such as scenario implementation, data collection, hardware precision, and cost control. As the cost of core components continues to drop and AI large models integrate with robotics technology, humanoid robots are expected to gradually expand into more application scenarios, including industrial manufacturing, commercial services, and household use.
Furthermore, he noted that AI is accelerating its deep integration with the automotive sector. An increasing number of OEMs and parts suppliers are leveraging their technological expertise, manufacturing capabilities, and supply chain resources to expand into new tracks like robotics and AI terminals, exploring new models of cross-industry synergy. Looking ahead, the convergence and innovation of the automotive, AI, and robotics industries will deepen further, creating new growth space for the sector.
Wang Xianbin | Partner and Vice President of Research, Gasgoo Automotive Research Institute
Hot Topic Discussions
During the breakout sessions, guests focused on the theme of "Market + Export," examining the evolution of NEV technology roadmaps and the path of globalization for Chinese automakers. Regarding the long-term competitive landscape of different technology routes—such as pure electric, plug-in hybrid, and extended-range—participants explored the growth potential of pure electrics and the differentiated value of hybrid technology in various market environments. Simultaneously, focusing on the growth trend of Chinese auto exports, guests analyzed current opportunities and latent challenges. They discussed how to break through barriers in mature markets like Europe—specifically regarding regulations, branding, channels, and localized operations—to build a sustainable global development system.
In the "AI + Embodied Intelligence" discussion, guests explored new trends in the integration of AI technology with the automotive sector. Regarding the realization of value after integrating large models into vehicles, participants discussed moving beyond simply adding features to enhancing user experience, thereby uncovering the true application value of AI in smart cars. Additionally, focusing on industrial opportunities as electrification and intelligence competition enters a new stage, participants highlighted frontier technologies such as embodied intelligence, robotics, and edge-side large models. They debated how automakers and parts suppliers can leverage their strengths in scenarios, manufacturing, supply chains, and core components to enter the AI and robotics value chain and build long-term competitive barriers.
With that, the Research Institute's mid-year closed-door salon drew to a successful close. Through the exchange of ideas and in-depth discussion, corporate representatives and industry experts from across the supply chain explored development trends, technological innovation, and growth paths. The discussions provided new perspectives and inspiration for the industry to navigate cyclical changes and seize transformation opportunities. Looking ahead, the Gasgoo Automotive Research Institute will continue to leverage industrial data, research insights, and resources to connect various forces within the industry. The goal is to help automakers find new growth space amidst the trends in intelligence, globalization, and industrial transformation, jointly driving the high-quality development of China's automotive sector.
