In an exclusive interview with NIO's European Vice President and Chairman of the EU-China Business Association Automotive Working Group, Zhang Hui, key perspectives on the Chinese automotive industry were shared. Zhang emphasized that the Beijing Auto Show reaffirms China's global standing in the automotive sector—China has become a vital platform for electrification and smart technology worldwide.
Addressing skepticism often faced by Chinese automakers overseas, Zhang Hui, who is deeply involved in NIO's European expansion and closely monitors Chinese automakers' global ventures, noted that some misconceptions stem from "a lack of on-the-ground experience in China and insufficient depth and breadth of understanding of the Chinese market." As the world's largest automotive market, China boasts a comprehensive industrial system and a highly competitive environment, making it a "training ground" for many international automakers to hone their capabilities.
Zhang Hui specifically highlighted: "We owe gratitude to Chinese consumers. Their enthusiasm and readiness to adopt new technologies continuously drive innovation among automakers and component suppliers. While achieving technological advancements, Chinese automakers have also gained efficiencies and cost advantages."
When discussing the primary factors influencing car purchases in China, Zhang Hui stated that Chinese consumers prioritize autonomous driving technology and the seamless integration of technological ecosystems. Next, they value the diversity of in-car features, prompting Chinese automakers to meticulously address practical user needs. Lastly, aesthetic appeal, or "design," is highly important. Chinese companies have made significant strides in design in recent years, increasingly adopting an international style.
International automakers are progressively launching models tailored specifically for the Chinese market. "The Beijing Auto Show is the largest ever—China produced and sold over 34 million vehicles last year, setting a record for a single market. The scale of the auto show matches the size and influence of China's automotive industry," Zhang Hui remarked.
The ongoing 2026 Beijing International Auto Show is widely regarded as the "world's largest auto show," a description frequently used by Western media outlets. Zhang Hui observed that the number of new model launches at this year's event is among the highest in the show's history, indicating strong emphasis placed on the exhibition and the Chinese market by all brands, including joint ventures, wholly foreign-owned enterprises, and domestic Chinese companies. Data reveals that 222 new models were introduced during the auto show, with 173 being new energy vehicles, accounting for nearly 80% of the total.
"This year's Beijing Auto Show features more new models than last year's Shanghai Auto Show. NIO also has one of its largest exhibition spaces ever, exceeding 3,500 square meters, showcasing three brands together," Zhang added.
"The trends of smart technology and electrification are prominently displayed, both in the new vehicles presented and the technologies showcased. This includes core component manufacturers; for instance, CATL exhibited a new generation of battery swap stations. Furthermore, companies like Momenta and Horizon Robotics demonstrated integrated chips combining cockpit and autonomous driving functions, representing new industry directions."
"These exhibitors have demonstrated the innovative capacity of the entire automotive supply chain and the development direction of the global market," Zhang Hui confirmed.
Zhang also noted a significant detail: many international automakers are designing products based on the actual needs of Chinese users, launching models specifically for the Chinese market. Examples include Volkswagen's Jetta, Volkswagen brand, and Audi, each presenting models primarily or exclusively for China.
"These models, whether in terms of exterior design, interior choices, or software products developed in collaboration with Chinese companies, fully demonstrate that these automakers are significantly altering their vehicle development and R&D strategies in China compared to the past 30 years," Zhang Hui analyzed.
Additionally, Zhang observed that these companies are continuously adjusting their organizational structures between headquarters and their Chinese divisions, particularly regarding autonomy in product development and operational models: "For example, Volkswagen and Mercedes-Benz have been strengthening their design and R&D institutions in China in recent years, granting Chinese teams relatively higher decision-making authority."
"Overall, the penetration rate of new energy vehicles in Europe averages just over 20%, while in China, it exceeds 50%. Consequently, user demands differ significantly," Zhang Hui noted.
Regarding misconceptions about Chinese automobiles abroad, Zhang Hui stated that many misunderstandings arise from a lack of firsthand experience and insufficient understanding of the Chinese market. From the perspective of the EU-China Business Association, he analyzed the sources of competitiveness for the Chinese automotive industry.
"Overseas observers often see the competitive pricing of our products but may overlook key underlying factors. First, over the past 30 years, China's automotive sector has developed a highly competitive supply chain structure, which is evident not only in technology but also in cost and efficiency."
"Second, the competitiveness of Chinese vehicles stems from intense market competition. China is now the world's largest automotive market, featuring one of the most competitive environments globally."
"Last year alone, 280 new models were officially launched in the Chinese market. Based on 220 working days in Europe, this averages more than one new model launch per working day. In such a highly competitive and open market environment, companies naturally enhance their competitiveness continuously."
Zhang Hui remarked half-jokingly, "Some executives in the German automotive industry have said that the Chinese market is their 'training gym.' By building strength in China, they can compete effectively in other markets."
Thus, Zhang believes that the competitive advantages of the Chinese automotive industry are not due to a single factor, as simplistically perceived externally, but result from market competition, supply chain capabilities, and continuous innovation.
Finally, Zhang Hui emphasized that the prosperity of China's automotive industry must be credited to Chinese consumers—who are progressive, eager for new technologies, and quick to adopt them. This consumer base continually pushes automakers and parts suppliers to innovate, leading to technological leadership and cost advantages.
Furthermore, Zhang noted that the global automotive industry is currently in a transition phase, with some mature markets undergoing adjustments in traditional internal combustion engine production capacity and resource reallocation.
"This indicates that the global automotive industry is accelerating its transformation and upgrading. The core of future competition will remain innovation capability and user value," Zhang concluded.
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