experts.news
Switch to Українська
|
Economy

In 25 years, China has increased its share in the global automotive industry from 4% to 36%

Editorial team•
In 25 years, China has increased its share in the global automotive industry from 4% to 36%

Over the past 25 years, China has increased its share of global car production approximately ninefold — from 4% in 2000 to 36% in 2025, transforming from a relatively small producer to the largest center of the global auto industry. This is evidenced by a study by the Strategy Partners consulting company.

According to analysts' estimates, in 2000 China produced about 2 million cars, while by 2025 production will exceed 34 million cars per year. Thus, over a quarter of a century, the volume of Chinese automobile production increased approximately 17 times.

China's position strengthened especially quickly after 2010. The country not only formed the largest domestic automotive market, but also created a large-scale production base covering almost the entire value chain — from components and batteries to the production of cars and software.

One of the main factors in the further growth of the Chinese auto industry was the transition to electric cars and hybrid models. Chinese manufacturers have gained a strong position in the NEV vehicle segment, which includes fully electric cars and plug-in hybrids.

At the same time, Chinese companies are actively expanding their presence abroad. China has become the largest exporter of cars, and local manufacturers are expanding sales and creating their own production facilities in Europe, Asia, Latin America and other regions.

As a result, the structure of the world car market has also changed. If in the early 2000s its base was determined primarily by manufacturers from the USA, Japan, and Western Europe, by the mid-2020s China had become the largest single production center of the industry.

The growth of the Chinese auto industry is accompanied by the strengthening of its own national brands. The companies BYD, Geely, Chery, SAIC, Great Wall Motor and other manufacturers are increasingly actively competing with European, American, Japanese and South Korean concerns not only in the domestic market of China, but also in export destinations.

China's own production base of batteries has become a significant competitive advantage. Chinese companies occupy leading positions in the world production of traction batteries, and the country controls a significant part of global production chains related to the processing of raw materials and the manufacture of components for electric vehicles.

According to Strategy Partners, the transformation of the Chinese auto industry demonstrates the transition of the country from a model of catch-up industrial development to technological leadership in certain segments of the industry.