Ferdinand Dudenhöffer,director of the private Center Automotive Research(CAR)in Bochum,Germany,forecasts that Asian countries(China,South Korea,and Japan)will drive growth in global automotive production and sales in 2026,German media outlet Handelsblatt reported on Monday.
Amid a green and tech-driven transformation and rising protectionist risks,the global auto industry is shifting toward Asia,with China not only the largest market but a driver of production and innovation-offering Europe and the US opportunities to collaborate in electrification,smart mobility,and supply chains.
China's strong growth has been and will continue to represent a significant opportunity for global carmakers and advanced economies.As mature auto markets,Western countries have long-established industrial advantages and have also benefited from the Chinese market.
For instance,Germany's Volkswagen has been present in China for decades and it became one of the largest and most successful foreign brands in the country,which became its largest market.The German company delivered more than 2.9 million vehicles in the Chinese market in 2024,while its global vehicle deliveries surpassed 9 million,the Xinhua News Agency reported.
As both one of the largest markets and manufacturers in the world,China's automotive industry has indeed undergone significant changes in recent years.Alongside strong growth in production and sales,its electric vehicle(EV)manufacturing has made greater progress within the twin trends of green development and technology-driven economic upgrading.
In 2024,China held the world's top positions in car production and sales for a 16th consecutive year.In recent years,although Chinese automakers have faced protectionist tariffs and increasing industry competition,they have maintained strong growth momentum.Progress has been made particularly in EVs and vehicle intelligence(smart mobility)technologies.
However,some policymakers and industry players in Western countries have not objectively assessed the development of China's automotive industry.Instead,they hype a"China threat"with a zero-sum mindset and adopt protectionist measures.This not only disrupts the development of the global vehicle industry but is also detrimental to their own interests.
Recently,the Alliance for Automotive Innovation-representing GM,Ford,Toyota,VW,Hyundai and others-urged the US government to block Chinese"government‑backed"car and battery manufacturers from opening plants in the US,claiming that China poses"clear and present threat"to the US auto industry,Reuters reported.
This is a typical case of the unfounded"threat"narrative against Chinese vehicles.Far from posing a"threat,"the rapid development of China's vehicle industry and market presents new opportunities for mature markets like Europe and the US,which can leverage China's growth in electrification,smart mobility,and supply chains to co-develop technology and expand global collaboration.
Notably,like CAR's head,many Western industry leaders have also highlighted the opportunities presented by the Chinese EV sector.Indeed,the European Commission's protectionist tariffs on Chinese EVs have encountered strong opposition among some European vehicle makers.They warned that the bloc's protectionism would damage European carmakers and limit affordable EV options for European consumers.
It is clear that free trade and fair competition ensure prosperity,growth and innovation,whereas rising protectionism can disrupt global supply chains,hinder technological progress,and harm all stakeholders.
At a press conference in September,He Yadong,spokesperson of China's Ministry of Commerce,commented on the EU's anti-subsidy case concerning EVs,noting that China's stance on openness and cooperation will not change,nor will its commitment to dialogue and consultation.He urged the European Commission to implement the consensus reached at the China-EU leaders'meeting,address industry concerns constructively,and create an open and stable market environment for China-EU industrial development.
The global car industry stands at a crossroads.Embracing collaboration with China-rather than protectionism-allows advanced economies to tap into innovation,scale,and green technology,ensuring that the transition to electrification and smart mobility benefits all players.Open markets,joint development,and constructive dialogue are the keys to a sustainable,competitive,and globally integrated automotive future.
