Chinese EVs reclaim momentum as tech upgrades, incentives squeeze gains of foreign marques
Domestic brands surge on fresh incentives and better batteries, while foreign carmakers fail to sustain their earlier market share
Foreign carmakers from Volkswagen to Toyota held a combined 30.3 per cent share of the Chinese automotive market in April, with about 418,140 vehicles handed to local customers, according to data from the China Passenger Car Association (CPCA).
In the first quarter, the carmakers – which retain an edge in building conventional petrol cars – commanded 39.8 per cent of the world’s largest vehicle market.
CPCA data showed that international brands accounted for 34.7 per cent of the Chinese market in 2025.
The rebound was driven largely by short-term weakness in domestic EV demand following subsidy roll-offs, rather than any reversal in structural competitiveness, Deutsche Bank said in a research report released this week.
“April data dashed hopes for a comeback by foreign brands,” said Steve Shi, a manager at Juchen Auto Trade, an auto service firm. “More Chinese motorists realised that EVs represented the future of mobility, although many of them still have faith in international brands in terms of product quality.”