AlixPartners Releases Report on 'Latest Trends in China's Automotive Industry'

Global consulting firm AlixPartners (Headquarters: New York, USA; Japan: Chiyoda-ku, Tokyo; Representative: Takuro Uechi; hereinafter, "the Company") announced the release of its report on "Latest Trends in China's Automotive Industry" (hereinafter, "the Report") in conjunction with the 2026 Beijing International Auto Show. The Report reveals that Chinese automakers and suppliers are set to nearly triple their overseas production by 2030, positioning the global market as their primary revenue source.

Chinese automakers are projected to expand overseas production from 1.2 million units last year to 3.4 million units by 2030.

Chinese automakers plan production in at least 16 countries.

In Latin America, Chinese brands already account for approximately one-fifth of the total automotive market and over half of EV sales.

The focus of Chinese automotive companies is shifting from exports to establishing local production and partnerships in key regions, as well as developing local supplier ecosystems.

Currently, Chinese companies are accelerating their overseas expansion to address intense domestic market competition, diversify geopolitical risks, and capture stable, high-value-added demand.

China is already the world's largest automotive exporter, but it is shifting away from existing markets like Russia and the Middle East, and is advancing the establishment of production bases in over 10 countries. Its focus is transitioning from exports to building local production and partnerships in key regions, and developing local supplier ecosystems.

Andrew Bergbaum, Global Co-Leader of AlixPartners' Automotive & Manufacturing Practice, states:

"It is clear that Chinese companies have even bigger plans, starting with the expansion of local production. Global automakers and suppliers face a tough choice: either partner with the rapidly growing Chinese players or rapidly transform to compete on cost-effectiveness and intelligent vehicle features. Whichever path they choose, strengthening competitiveness is essential."

China's growth model has historically been based on cost advantages, faster product cycles, and advanced technological capabilities, exemplified by intelligent vehicle systems. Currently, China's market entry model is evolving from "export-only" to "multi-faceted international expansion." They are investing in wholly-owned overseas factories in places like Hungary, Turkey, and Thailand, and also planning to establish bases in North and South America. Furthermore, to avoid tariffs and accelerate scale expansion, they are also advancing the establishment of local dealer and service networks, contract manufacturing, and the utilization of joint ventures. Many of these partnerships span mobility platforms, including collaborations between BYD and Uber, Zeekr and Waymo, as well as major Western players like Stellantis with Leapmotor, and Renault with Geely.

Dan Hearsch, Global Co-Leader of AlixPartners' Automotive & Manufacturing Practice, states:

"The Chinese automotive market is reaching a critical point of over-competition, with vehicle prices dropping by 20% in the past two years. Nevertheless, Chinese companies' cost competitiveness and speed remain world-class. Global competitors need to respond with an extreme approach: thoroughly focusing on product features that customers truly need, while maintaining 'standard quality' for unnecessary parts."

Furthermore, a survey of 1,002 executives from global automakers, Tier-1 suppliers, and the technology industry revealed that Chinese manufacturers are leveraging their superiority in intelligent vehicle development to strengthen brand power and customer experience.

Regarding market-specific outlooks, South America and Australia are seen as regions with near-term growth potential for Chinese players, due to the relatively weaker market dominance of existing competitors and high consumer price sensitivity. In Europe, Southern Europe is emerging as a strategic foothold for expansion across the continent.

Moreover, Chinese companies have already moved away from traditional engineer-led development, adopting a smartphone industry-type approach where product managers prioritize customer experience. This model is seen as a key factor determining the competitiveness of automotive companies in the future.

*This press release is a Japanese translation of a press release announced in North America on April 21, 2026.