Visitors inspect models of Dongfeng Nissan at the Chongqing auto show on June 20. CHINA DAILY
Despite a shrinking market share, multinational automakers are boosting investment in China and shifting from global-model imports to local innovation — a move experts say still has a fighting chance in the world's biggest car market.
Latest data from the China Association of Automobile Manufacturers show foreign brands' share of China's passenger car market fell to 24.5 percent in June, down from a peak of about 75 percent in 2014. Domestic brands, by contrast, took 75.5 percent — up 8.2 percentage points year-on-year — continuing a run of record monthly highs.
This is because during the ongoing energy transition, local players have swiftly rolled out new products with smart features tailored to domestic consumer preferences. By contrast, joint ventures have long relied on global vehicle platforms, encumbered by lengthy R&D approval chains that slow their response to market shifts. This analysis was given by Ron Zheng, a senior partner at Roland Berger, who spoke at the 2026 China Auto Forum last week.
Roland Berger forecasts that local Chinese automakers will widen their advantage in foundational technology, market execution and cloud services over the next five to 10 years. Still, the consultancy notes that top joint venture brands retain significant growth potential given the market's size — but only if they show real progress on products, cost control and local innovation.
