China’s Ascent: From Beginner to Automotive Titan
China has rapidly ascended to become the world’s leading car producer, with its vehicles gaining popularity across Europe. But how did the country achieve this remarkable transformation? Tycho de Feijter, founder of CarNewsChina.com and ChinaCarHistory.com, provides insights into the key factors driving this automotive revolution.
A traffic policeman on Tian An Men Square in the 1980s.
De Feijter points to the involvement of Western manufacturers in the 1980s and 90s as a critical turning point:
“I think the arrival of the first joint ventures in the mid-1980s and early 1990s were very important because, before that, Chinese companies didn’t know how to mass produce cars. There was some automation, but most companies made a few hundred cars a year.”
This strategy, driven by the Chinese government, enabled local companies to learn from established Western brands, fostering the mass production of vehicles. As a result, Chinese-made versions of vehicles like Jeeps, Toyotas, and Suzukis began appearing.
China’s automotive journey began in 1958 with the Dongfeng CA71, but production was slow in the early years. Joint ventures with Western brands were encouraged, and companies like Volkswagen and Citroen began manufacturing their models under license in China. This collaborative approach not only boosted sales for Western brands but also provided Chinese manufacturers with invaluable knowledge in mass production and vehicle design.
The Electric Vehicle Advantage
Another significant factor in China’s automotive growth has been its early embrace of electric vehicles (EVs).
A row of new BYD Dolphin and Seal cars for sale.
Many Chinese companies, including BYD, saw the potential of EVs early on. De Feijter explained, “Many brands started working on their first electric cars in the late 2000s and early 2010s, and that was a time when the tech revolution went so quickly that most Western brands couldn’t keep up.” BYD, which started as a battery manufacturer, had the experience and infrastructure to transition to EV production when the market took off.
Despite its rapid rise, Chinese car companies still face challenges in Europe, particularly the need to demonstrate durability and build consumer trust. As de Feijter noted, “These brands really have to prove themselves. Many drivers are currently thinking ‘this is a good deal, but how do I know the company will be around in five years?'” Companies with established names, like MG, have an advantage, while newer brands like Nio and Xpeng still need to build their reputations.
