Komodo
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18
2026
-
06
China and Germany's auto industries explore new paths of win-win cooperation amid the deep restructuring
Automotive Industry Transformation Reshapes Division of Labor in Supply Chains
According to forecasts from S&P Global, global light vehicle sales are expected to grow by less than 2% in 2026, while the growth rate of global battery electric vehicle (BEV) sales is projected to drop from 29% in 2025 to around 19%. This slowdown is attributable to multiple factors. First, weakening economic conditions and declining business confidence are inevitably weighing on overall vehicle sales. Second, while battery performance continues to improve, the existing charging infrastructure remains insufficient to fully support the expansion of electric mobility. These challenges are not unique to China's automotive market—they are being felt across the global auto industry. The transition to electric vehicles requires a more robust power grid and a more reliable electricity supply as a fundamental foundation. Despite current fluctuations in sales volumes, electric vehicles will remain the mainstream of future mobility.
Trade Protectionism Challenges Global Supply Chains; Fair Trade Urged to Protect Jobs and Growth
It is only through the global division of labor that companies are able to offer products and services to markets around the world. The prevailing logic of this division has had far-reaching effects across the globe over the years—boosting local economic growth, generating industrial added value, and creating a vast number of jobs, among other benefits. Today, however, this model is facing mounting challenges from multiple fronts, including trade protectionism and restrictions on the export of raw materials. The world should return to a free, fair, and rules-based trading system. Governments around the world must act in concert to ensure that free trade can continue to advance. This represents the optimal outcome for all economies, consumers, and workers alike.
China and Germany's Auto Industries Move Toward Each Other
Despite declining sales in China, German automakers continue to double down on their R&D efforts in the country. China's automotive industry is evolving at a remarkable pace, and German manufacturers are integrating cutting-edge digital technologies, artificial intelligence, and a host of new features into their vehicles—tailored specifically for Chinese customers. Their goal is not to maintain market share at all costs, but to win long-term customer trust through superior products, thereby solidifying their economic competitiveness and securing lasting success.
In the past, Sino-German cooperation largely followed a "market-for-technology" model. Today, however, we are seeing a growing trend of "reverse innovation." Volkswagen, for instance, has fully localized the production of electric vehicles in China and, for the first time, is developing new models outside of Germany. In core digital domains of the future—such as advanced autonomous driving and intelligent connectivity—Chinese and German automakers now stand on equal footing, with highly complementary strengths. Germany's edge lies in vehicle engineering, safety, and system integration, while China excels in rapid iteration cycles and a deep understanding of local user needs. German automakers bring world-class engineering expertise and decades of accumulated know-how in safety, stability, and efficiency, whereas China is advancing swiftly in the digital arena.
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