Invention and Engineering

Automotive industry in China

The automotive industry in China has been the largest in the world measured by automobile unit production since 2008. As of 2024, China is also the world's largest automobile market both in terms of sales and ownership. The Chinese automotive industry has seen significant developments and transformations over the years. While the period from 1949 to 1980 witnessed slow progress in the industry due to restricted competition and political instability during the Cultural Revolution, the landscape started to shift during the reform and opening up period that started in the late 1970s, especially after the government's seventh five-year plan between 1986 and 1990 prioritized the domestic automobile manufacturing sector. The entry of China into the World Trade Organization (WTO) in 2001 further accelerated the growth of the automotive industry. Tariff reductions and increased competition led to a surge in car sales, with China becoming the largest auto producer globally in 2008. Foreign investment and joint ventures played a crucial role in attracting foreign technology and capital into China. American Motors Corporation (AMC) and Volkswagen were among the early entrants, signing long-term contracts to produce vehicles in China. This led to the gradual localization of automotive components, and the strengthening of key local players such as SAIC, FAW, Dongfeng, and Changan, collectively known as the "Big Four". Strategic initiatives and industrial policy such as Made in China 2025 specifically prioritized electric vehicle manufacturing. In the 2020s, the automotive industry in mainland China has experienced a rise in market dominance by domestic manufacturers and a shrinking market share for foreign car brands, with a growing focus on areas such as electric vehicle technology and advanced assisted driving systems. The domestic market size, technology, and supply chains have also led foreign carmakers to seek further partnerships with Chinese manufacturers. Due to rapid advancements by Chinese companies, China's automotive industry is regarded as one of the most competitive and innovative in the world. In 2023, China overtook Japan and became the world largest car exporter. In 2025, Chinese automobile companies overtook Japanese companies in global vehicle sales to become the world's largest sellers of vehicles. In 2025, China exported 7.1 million vehicles.

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See also

• ▸Earl of Airlie (locomotive)
• ▸Bellagio (resort)
• ▸Columbus, Ohio

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