Die chinesischen Eigenmarken haben die Joint Ventures in die Enge getrieben.

"It's already 2025, why are people still hyping up domestic cars?"

I believe that after reading the title of this article, some of you, dear readers, might say something like this. Before writing this article, quite a few people around me had already criticized me in this way. In their view, domestic cars have already overtaken foreign brands in the new energy vehicle market. Saying that they are "dominating" at this point is old news and shows a lack of timeliness.

However, I'd like to point out that the market is constantly changing, and competition is ever - evolving. Perhaps, in the blink of an eye, a new market landscape has emerged. Against the backdrop of the current transition from the old to the new, we are witnessing the remarkable transformation of domestic auto brands once again.

Take the first half of this year as an example. The cumulative retail sales of passenger cars reached 10.901 million units, a year - on - year increase of 10.8%. Among them, domestic brands' performance was truly remarkable, accounting for 64% of the retail market share, a jump of 7.5 percentage points compared to the same period last year. It only took three years for domestic brands to grow from occupying half of the market to leading a full - scale counterattack.

It should be noted that in the past three years, the development of domestic brands has been far from just a simple increase in a few sets of data on a chart. Behind the scenes, they have made leaps and bounds in areas such as technological breakthroughs, market restructuring, global layout, and brand up - grading. They have transformed from followers to rule - makers and are on the path to rewriting the global automotive industry competition landscape.

From Catching Up to Keeping Pace and Then Leading

Of course, if we want to highlight the most prominent part, the data is the most straightforward. For example, in the top ten list of retail sales in the first half of the year, domestic brands have reshaped the automotive industry landscape with an unprecedented presence.

Among them, domestic brands have occupied six spots, squeezing joint - venture brands into only four positions (FAW - Volkswagen, SAIC Volkswagen, FAW Toyota, and GAC Toyota). Among them, four major domestic giants - BYD, Geely, Changan, and Chery - not only firmly hold their positions in the top ten but also form the first echelon with sales of over 600,000 units each. BYD (1.61 million units) and Geely (1.226 million units) have both exceeded the one - million mark, becoming important driving forces for the growth of the market share of domestic brands.

It's not hard to see that in this list, domestic brands are no longer the supporting roles they used to be.

As domestic brands shine, joint - venture brands are gradually fading. The once - dominant "golden lineup" of joint - venture giants has now become a stage where domestic brands take the lead.

Looking at the data, domestic brands' retail market share reached 64% in the first half of the year, a year - on - year increase of 7.5 percentage points. This 7.5 - percentage - point increase means that in the total market of 10.9 million units, domestic brands have snatched more than 800,000 units of market share from joint - venture brands.

This is not a gentle encroachment but a sweeping takeover. In this process of attack and defense, increase and decrease, there is as much joy for domestic brands as there is gloom for joint - venture brands.

However, this didn't happen overnight.

Looking back a few years ago, SAIC Volkswagen, FAW Volkswagen, and SAIC General Motors - the "North - South Volkswagen + General Motors" combination - consistently ranked among the top three in the sales list and were undisputed market leaders. Other joint - venture brands such as Dongfeng Nissan, GAC Honda, Dongfeng Honda, FAW Toyota, GAC Toyota, and Beijing Hyundai also occupied important positions in the list.

These joint - venture brands relied on the strong brand influence of their international parent companies, mature and reliable product technologies in the traditional fuel - powered vehicle field, a comprehensive global R & D system, and relatively advanced management experience. Their product lines covered all major market segments, from economy family cars to mid - to high - end sedans and SUVs, and they successfully won the wide - spread trust of Chinese consumers.

Meanwhile, in the top ten list, the presence of domestic brands was scarce and unstable. Well - performing domestic brands like Geely, Changan, and Great Wall usually barely made it into the top ten and were unable to shake the dominance of joint - venture giants. Overall, the market share of domestic brands remained below 40% for a long time, sometimes even around 30% or lower.

At that time, the core challenges faced by domestic brands included weak brand power, a lack of core technologies, poor product quality, and low premium capabilities. This reflected the gaps in brand, technology, and system capabilities of the Chinese automotive industry at that time. However, those difficult times inspired the determination of domestic brands to change and their innovation capabilities.

In just a few years, riding on the wave of the new energy revolution and leveraging the advantages of the Chinese market, domestic brands have achieved an epic comeback. From the periphery of the sales list to taking the lead, and from a market share of 30% to exceeding 60%, this is not just a change in numbers but a sign of a fundamental transformation in the strength, innovation ability, and market position of the Chinese automotive industry.

Joint - venture giants that were once looked up to are now facing huge competitive pressure from Chinese domestic brands. More and more domestic brands are making it into the top ten of the automotive industry, outlining an upward trajectory of domestic brands from catching up to keeping pace and then leading.

Behind the Multi - dimensional Rise

"Domestic brands have performed well overall in the first half of the year, but the industry is also showing a significant trend of differentiation," an industry insider said. Behind the overall upward trend, the domestic brand camp is undergoing a brutal reshuffle and upgrade with technology as the weapon.

Indeed, traditional giants like BYD, Geely, and Changan, relying on their deep - seated accumulation and a decisive shift towards the new energy field, have not only maintained their market positions but also made breakthroughs in high - end product lines (such as Yangwang and Galaxy series) and overseas markets, showing strong growth momentum.

Meanwhile, the new - energy vehicle startups are staging a drama of "survival of the fittest."

For example, Li Auto has been leading the pack with its precise positioning and stable operation; XPeng and Leapmotor have carved out a niche in the market through continuous iteration of their pure - electric platform technologies and intelligent upgrades, becoming the second echelon with remarkable growth rates; and new players like AITO, empowered by Huawei, and Xiaomi Auto, representing the cross - border entry of tech forces, have become the "third wave of growth drivers" that are disrupting the market landscape.

While achieving success, domestic brands have gone beyond the cold sales figures. They are reshaping the image of Chinese cars in an all - round way with unprecedented technological confidence, a global perspective, and a high - end brand image.

Currently, core technologies pioneered and mass - produced by domestic brands, such as blade batteries, CTB (Cell - to - Body) technology, Super Hybrid DM - i, Thor Hybrid, high - level intelligent driving, and Hongmeng Cockpit, have become the new benchmarks in the market. The Chinese automotive industry is overcoming the self - doubt caused by the weakness in the "three major components" technology.

Moreover, in order to seek additional growth and expand the influence of Chinese cars, leading domestic brands like BYD, Chery, Geely, and Great Wall are aggressively exploring overseas markets with unprecedented intensity and speed. From Europe to Southeast Asia, from the Middle East to Latin America... The export volume of Chinese - branded cars has repeatedly hit new highs, and the overseas factory - building layout is accelerating, indicating that they are truly becoming globally competitive and influential.

Empowered by technology, the value of Chinese brands is constantly increasing with the launch of more high - end models. The hardcore off - road capabilities of the Yangwang U8, the performance label of the Zeekr 001 FR, the executive flagship positioning of the NIO ET9, and the technological luxury of the AITO M9... These products, whose price ranges are approaching or even exceeding those of traditional luxury brands, have won the recognition of high - end consumers with their technology and user experience.

Thanks to their efforts, the ceiling for domestic brands to enter the high - end market is being broken through by successive upward - moving offensives.

On the other hand, as domestic brands sweep across the market like a prairie fire, once - glorious joint - venture brands are generally in a situation of "contracting while seeking stability."

Except for "North - South Volkswagen" and "the two Japanese brands (Toyota)" which can still hold their ground with their strong system capabilities and timely product adjustments, more joint - venture brands are facing the severe challenges of declining market share and even exiting the Chinese market. In the wave of electrification, some joint - venture brands are clearly falling behind; in terms of intelligent experience, they often fail to meet the demands of "spoiled" Chinese consumers.

Strictly speaking, joint - venture brands are not that weak. It's just that domestic brands' overtaking in the new energy field has magnified the disadvantages of joint - venture brands in the new energy market. As a result, the latter have to struggle to maintain their position through significant terminal discounts, accelerating the introduction or local R & D of new energy models, and strengthening supply - chain cost control, trying to find a new balance while contracting.

Meanwhile, the brand image, reputation, and consumer trust that joint - venture brands have built up over decades, especially in terms of reliability, durability, and resale value, are difficult to be completely replaced in the short term. In addition, in the traditional fuel - powered vehicle field and hybrid technology, many joint - venture brands still have deep - seated technological accumulations and advantages, with mature and stable products.

This enables many joint - venture cars to still dominate more niche markets. For example, the Passat, Camry, and Accord in the mainstream mid - size sedan market, and the CR - V and RAV4 in the mainstream SUV market, remain the top - selling and benchmark products in their respective segments due to their well - balanced product features and good reputations. Not to mention in the luxury car market, brands like BBA, Lexus, and Cadillac still dominate, and although domestic high - end brands are catching up, there are still gaps in terms of scale and brand influence.

Therefore, behind the seemingly "dominant" performance of domestic cars is not only a systematic qualitative change after decades of accumulation in the Chinese automotive industry but also a period for joint - venture brands to seek counter - attack opportunities. Currently, many mainstream joint - venture brands have started to accelerate their transformation, and the future market competition landscape remains full of uncertainties.

This article is from the WeChat official account "Automotive Commune" (ID: iAUTO2010), author: Li Sijia, published by 36Kr with permission.