China’s Automotive Surge: The Six ‘S’ Framework Underpinning China’s Global Competitiveness

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In the Center for Automotive Research (CAR) latest white paper, China’s Automotive Surge: The Six ‘S’ Framework Underpinning China’s Global Competitiveness, we examine the interconnected factors behind China’s rapid rise.

CAR’s research identifies six reinforcing drivers:

• Set Up – A decades-long industrial strategy built around policy, technology transfer, scale, and electrification
• Supply Chain – Deep domestic capabilities across critical minerals, batteries, electric motors, and EV production
• Speed – Faster development cycles, decision-making, and speed to market
• Saturation – Production and capacity increasingly exceeding domestic demand
• Subsidies – Extensive producer, consumer, and non-monetary government support
• Sales – Rapid growth in Chinese automaker market share both domestically and globally

The data illustrates the scale of the shift. Chinese automaker global market share grew from 14% in 2020 to 25% in 2025, while total Chinese automaker sales increased 101% over the same five-year period. China also produced approximately 68% of global EV batteries in 2025, and Chinese New Energy Vehicle exports increased 211% from Q1 2024 to Q1 2026.

For North America, the implications extend well beyond vehicle sales. These trends affect supply chains, technology development, manufacturing strategy, investment decisions, and public policy.

CAR developed this research to provide industry stakeholders with an independent framework for understanding these competitive forces and to help inform the decisions needed to strengthen North America’s automotive ecosystem.

CAR will continue exploring the implications of China’s automotive growth through independent research and industry dialogue. If your organization is evaluating how global competitive shifts may affect your business, supply chain, investment strategy, or policy priorities, CAR can help bring independent research, industry expertise, and customized analysis to those questions.