Foreign car companies use technology to hang onto China auto market
A journalist films Xiaomi SU7 Ultra cars during a Xiaomi track day driving experience in Tianjin, northern China, on April 23, 2026, ahead of the Beijing Auto Show opening on April 24. (Photo: GREG BAKER / AFP via Getty Images)
Greg Baker | Afp | Getty Images
BEIJING — Foreign automakers, struggling with the decline in sales in the world’s largest automobile market, are finally catching up with their Chinese rivals in technology.
US, Korean and German automakers rushed to announce new model lineups for China at the Beijing Auto Show, which started on Friday.
“We have plans to really build this brand and come back [to] where we used to be in terms of volume and [market] share,” Will Stacy, vice president of Cadillac China General Engineshe told CNBC’s Eunice Yoon.
Cadillac announced on Wednesday China’s first car with driver assistance technology: Three-row “luxury” electric SUV priced at 468,000 yuan ($68,000) and 508,800 yuan.
The vehicle, called VISTIQ, uses advanced driver assistance software that can perform automatic parking operations as well as highways and urban roads. The technology was developed together with Chinese autonomous driving startup Momenta.
“We were mostly an ICE [internal combustion engine] Stacy said local sourcing in China allows Cadillac to compete effectively with local rivals, reducing production time to 18 months and aiming to attract customers with the brand’s promise of confidence in safety.
hyundai The Korean automaker officially launched its all-electric IONIQ brand in China on Friday as it launches its most ambitious local expansion to date.
“China is where the future of mobility is defined, and Hyundai aims to help define it in China, for China, and ultimately for the world,” José Muñoz, president and CEO of Hyundai Motor Company, said in a statement. he said.
Muñoz added in an interview with CNBC’s Eunice Yoon that the automaker needs to “reimagine strategy” as China’s share of Hyundai’s total sales has fallen from 17% to 4%.
Hyundai’s new IONIQ V also comes with advanced driver assistance developed together with Momenta and offers voice control functions using an AI assistant. Qualcomm Snapdragon 8295 chipset.
Muñoz told CNBC that if sales in China go well, Hyundai could export the brand to the Asia-Pacific, Australia and the Middle East.
Hyundai’s China sales in March were about a third of sales in the same month in 2019, before the pandemic. In the same period, some other foreign automobile manufacturers also saw a decrease in their sales. Figures compiled by CNBC show: Nissan Sales in China in March fell 47% from March 2019, while Cadillac fell 39%.
“I’m happy to see that these foreign brands are humble enough and understand the value of the Chinese technology they are incorporating,” said Stephen Dyer, partner and managing director and president of AlixPartners’ Asian automotive and industrial consulting practice.
He is less optimistic that foreign brands can regain significant market share in China, but said they have opportunities to bring technology from China to their markets.
“I think the technology will spread all over the world,” Dyer said. “I don’t think you can keep this locked up in a Chinese bottle. I think it’s already gone out.”
Cars with personality
German car manufacturer volkswagenThe company, which also launched its most ambitious Chinese product campaign, announced on Tuesday that it will start implementing artificial intelligence-supported voice commands in its cars in China as of the second half of the year.
“The car should be like a friend,” said Volkswagen China CTO Thomas Ulbrich.
The company’s in-car AI representative said it will leverage the technology Tencent, Alibaba’s And baiduto create, among other things, a vehicle with a “personality” that can anticipate the driver’s needs.
Volkswagen unveiled four cars, including the ID, in Beijing on Tuesday. UNYX 09, which the company says it developed together with the electric vehicle manufacturer xpeng in two years.
The German automobile manufacturer established a research and development center in Hefei where it can manage the entire production process.
Hyundai and local state partner BAIC had committed 8 billion yuan to the joint venture as of December 2024.
Beijing Hyundai startup plans to introduce 20 new models in China over the next five years. The cars include the new IONIQ V and another SUV with an annual sales target of 500,000 in the first half of 2027.
China market leader BYD Sales of 688,993 units were recorded in China in the first three months of 2026, but this marked a 30% decrease compared to the same period in 2025. BYD surpassed that figure by selling 2.26 million battery-powered cars worldwide last year. Tesla’s1.64 million vehicle sales.
Ivan Espinosa, Nissan’s president and CEO, told CNBC’s Elaine Yu that on average, 10 to 15 cars are launched in China in about a month, which means automakers “have to stay relevant and up-to-date” for customers facing many options.
“The fact that we have established dealers with established experience, good relationships and good service, which is becoming increasingly important,” Espinosa said.
Nissan plans to launch five new energy vehicles using plug-in electric technology over the next 12 months.
Japanese automaker has a joint venture with China dongfengand integrated DeepSeek AI capabilities. Last year’s N7 electric sedan.
— CNBC’s Matthew Chin contributed to this report
