Western automakers now chase relevance in China by building electric models with local tech. At Beijing’s auto show, BMW unveiled the iX3 SUV, a chassis engineered in China with Momenta, Huawei and Alibaba components. Executives say the move will stabilize sales this year while positioning the cars for global rollout in future markets across Asia and Europe today.

China’s EV share swells to over 50% of new car sales, eroding Western shares from 64% in 2020 to 32% this year. VW reclaimed the top spot with 13% market share in early 2026, helped by falling subsidies for domestic makers. The German group plans 13 plug‑in hybrids and EVs in China alone this year, aiming for export in 2026.

Chinese firms now supply software that Western brands need to match pace. Chris Liu of Omdia says talent density in China drives iteration speed, a gap German automakers cannot ignore. While joint‑venture plants sit under‑utilised, Nissan targets 1 million units by 2030, exporting the N7 and Frontier Pro to Latin America, Southeast Asia and the Gulf. Success hinges on keeping production lines running for growth.