In 2024, China’s automotive sector continued to thrive, cementing its status as the globe’s largest car market. According to the China Association of Automobile Manufacturers (CAAM), domestic vehicle deliveries hit 25.57 million units, showcasing a modest 1.6 percent rise from the previous year.When exports are included, the total soared to 31.43 million units, reflecting a robust 4.5 percent increase compared to 2023.
Yet, this growth wasn’t global. While the market expanded, manny international car brands struggled to keep pace. Wiht the exception of tesla and Lexus, foreign automakers saw their sales shrink. CAAM data showed that foreign passenger vehicle brands’ market share plummeted to 34.8 percent in 2024, a notable drop from 60.8 percent in 2019.
As an example, mercedes-Benz reported a 7 percent decline in sales, delivering 683,600 vehicles in China. Toyota, the world’s top-selling automaker, saw its figures slip to 1.78 million units, while Volkswagen Group’s deliveries fell by 9.5 percent to 2.93 million vehicles. Experts point to the rapid ascent of Chinese manufacturers,who are leading the charge in innovative energy vehicles (NEVs) and cutting-edge smart technologies.
Young, tech-oriented Chinese consumers are increasingly turning to domestic brands like BYD and Chery, leaving conventional international names behind. BYD, for example, sold 4.25 million vehicles in 2024, a staggering 41.1 percent jump from the previous year, with plug-in hybrids making up 58.5 percent of those sales.Even premium car buyers are shifting their preferences, opting for homegrown brands such as Nio and zeekr over established players like Mercedes-Benz and Volvo. Volvo’s sales in China dropped by 8 percent to 156,000 units, while Zeekr, part of the Geely family, experienced an impressive 87 percent surge, selling 222,123 units.
Despite these hurdles,global automakers are far from giving up. Many are intensifying their efforts to regain momentum in this competitive market. Volkswagen Group china’s CEO, Ralf brandstaetter, remains hopeful. “If I had to describe 2024 in one word, it would be transformation. We made significant strides in bringing our strategy to life, demonstrating our long-term commitment to China,” he said. Volkswagen is gearing up to launch new electric models under its Audi brand, some equipped with Huawei’s smart solutions. The company will also debut its first China Main Platform-based model, tailored exclusively for the local market, and plans to introduce its inaugural range-extended vehicle in 2026.
BMW Group is another key player doubling down on its investment in china.By 2025,the automaker plans to roll out over 10 new BMW models,alongside several MINI and BMW motorbikes,signaling its determination to stay competitive in this rapidly evolving landscape.
How China’s Automotive Industry Became a Global Powerhouse in 2024
China’s automotive industry reached new heights in 2024, cementing its status as the world’s largest vehicle market. Domestic deliveries hit an impressive 25.57 million units, while exports surged to 31.43 million units. This remarkable growth has been fueled by several key factors, notably the rise of domestic brands like Leapmotor.
Electric Vehicles: The Driving Force behind Growth
One of the most significant contributors to this success has been the rapid adoption of electric vehicles (evs). Li Wei, Chief Strategy Officer at leapmotor, emphasized the role of innovation and scalability in this transformation. “At Leapmotor, we’ve focused on leveraging intelligent manufacturing to produce high-quality EVs at competitive prices,” he stated.This strategy has allowed domestic brands to thrive in a market increasingly dominated by green energy solutions.
Government policies have also played a crucial role. Support for green energy and EV infrastructure has created a favorable environment for domestic automakers. “Chinese consumers are increasingly prioritizing value and technology,” Li wei added, highlighting how local brands have been quick to meet these evolving demands.
Domestic Brands Outperform International Competitors
While domestic brands have flourished,international automakers have faced significant challenges. Foreign brands saw their market share drop to 34.8% in 2024, down from 60.8% in 2019. According to Li Wei, domestic companies have a clear edge in understanding local preferences. “We’ve seen a growing demand for smart features, connectivity, and customization—areas where Chinese companies excel,” he explained.
Additionally, the cost structure of domestic manufacturers allows them to offer advanced technology at more accessible price points. International brands, despite their global strength, have struggled to keep up with the pace of innovation and localization required in China’s dynamic market.
Innovation and Future Prospects
Looking ahead, the Chinese automotive industry shows no signs of slowing down.Companies like Leapmotor continue to push the boundaries of innovation, while international players are adapting their strategies to regain a foothold in this competitive arena. As an example, BMW is set to debut its neue Klasse models in China by 2026, featuring cutting-edge technology like the Panoramic iDrive and advanced driver assistance systems.
Other automakers are also making strides.Nissan plans to introduce eight new energy vehicle (NEV) models in China by 2026, while SAIC GM, a joint venture between SAIC and General Motors, aims to launch 12 NEV models between 2025 and 2027. These efforts are tailored to meet the preferences of Chinese consumers, signaling a renewed focus on this critical market.
As the industry evolves, one thing is clear: China’s automotive sector is not just leading the global market—it’s redefining it. with a combination of innovation, adaptability, and government support, domestic brands like Leapmotor are setting the stage for a future where China remains at the forefront of automotive excellence.
Leapmotor’s Intelligent Factory: Driving Innovation in the Automotive Industry
Nestled in the heart of Jinhua, Zhejiang Province, Leapmotor’s state-of-the-art intelligent factory has emerged as a game-changer in the automotive sector. Combining advanced automation, AI-driven processes, and flexible production lines, this facility is setting new benchmarks for efficiency and innovation. Li Wei,a key figure at Leapmotor,recently shared insights into how this factory is shaping the company’s growth trajectory.
A Hub of Efficiency and innovation
“Our intelligent factory is a cornerstone of Leapmotor’s strategy,” says Li Wei.“It integrates cutting-edge automation, AI-driven quality control, and flexible production lines, allowing us to scale efficiently while maintaining high standards.” This approach enables the factory to produce multiple vehicle models on a single production line, providing the agility needed to respond swiftly to market demands.
This operational versatility has not only reduced production costs but also considerably accelerated the time-to-market for new models. In an industry as competitive as automotive manufacturing, this edge is crucial. Li Wei emphasizes, “This has been instrumental in positioning us for growth and ensuring we remain competitive on a global scale.”
Lessons from Global leaders
When asked about the success of international brands like Tesla and Lexus, Li Wei acknowledges their achievements in building strong brand identities and loyal customer bases. “Tesla has positioned itself as a leader in EV innovation and sustainability, while Lexus is synonymous with luxury and reliability,” he notes. These brands’ focus on customer experience and brand building offers valuable lessons for domestic automakers.
At leapmotor, these insights are being put into action. “we’re investing heavily in branding and customer engagement to ensure our values and vision resonate with consumers,” li Wei explains. This strategic focus is helping Leapmotor carve out a distinct identity in the rapidly evolving automotive landscape.
The Future of China’s Automotive Industry
Looking ahead, Li wei predicts significant trends that will shape the industry. “The EV market will continue to expand, driven by advancements in battery technology and charging infrastructure,” he says. The integration of AI and autonomous driving features is also expected to accelerate,aligning with China’s push toward smart cities and enduring urban advancement.
Sustainability will remain a top priority, with automakers exploring new materials and energy sources to minimize environmental impact.“For Leapmotor, staying at the forefront of these trends is central to our strategy,” Li Wei asserts. By embracing innovation and sustainability, Leapmotor aims to lead the charge in transforming the automotive industry.
Conclusion: A Bright Road Ahead
As the interview concludes, Li Wei expresses confidence in the industry’s future. “With continued innovation and collaboration, the automotive sector will achieve even greater milestones,” he says. leapmotor’s intelligent factory in Jinhua stands as a testament to the company’s commitment to excellence and its vision for a smarter, more sustainable future.
