China’s Auto Influence Grows as Vehicles Rely on its Parts

China’s influence on the global automotive industry now extends far beyond the international expansion of automakers such as BYD, Geely, and Chery. According to industry analysts, virtually every vehicle sold worldwide contains at least one component manufactured in China or incorporates technology developed there.

Eric Ramírez, director for Latin America and the Caribbean, Urban Science, said Chinese content is present across all automotive brands and vehicle categories.

“I can state categorically that all brands have models with Chinese components. All of them. There is not a single one that does not,” Ramírez told Expansión.“Each vehicle contains between 9,000 and 10,000 components, and I can assure you that at least 15% are of Chinese origin.”

The growing presence of Chinese suppliers reflects a transformation that began more than three decades ago through joint ventures between foreign automakers and Chinese manufacturers. Early partnerships, including Beijing Jeep and collaborations between Volkswagen and SAIC, were designed to provide Chinese companies with access to manufacturing processes, engineering knowledge, and production expertise.

At the time, Chinese manufacturers sought partnerships with Western automakers to acquire technological know-how and accelerate industrial development. Industry observers say that strategy has now reached a new stage, where Chinese companies have developed independent technologies, production systems, and brands capable of competing globally.

Ramírez said the direction of cooperation has shifted significantly. “Many years later, what we have is that Chinese companies began developing their own vehicles, their own technology, and their own brands. What we are seeing now is the return cycle,” he said. “We are mainly seeing reverse joint ventures.”

Examples of this trend include manufacturing and technology collaborations in which Chinese automakers and suppliers provide production capacity or technological expertise to Western companies. Analysts point to arrangements involving Geely and Renault, as well as cooperation between SAIC and General Motors, as evidence of this shift.

The evolution of China’s automotive industry has been supported by long-term industrial planning. Ramírez previously noted that China’s progress is linked to decades of coordinated policy focused on manufacturing, innovation, and alternative energy technologies.

“The automotive industry has much to learn from China, especially its planning through five-year programs sustained for more than 30 years,” Ramírez said. This strategy has enabled Chinese companies to expand beyond vehicle assembly and establish positions across the entire automotive value chain. Industry analysts identify supplier networks as one of the country’s most significant competitive advantages.

China’s strength is particularly visible in the new energy vehicle segment, including battery electric and hybrid vehicles. The country has built large-scale manufacturing ecosystems capable of producing components at competitive costs while supporting technological development.

One of the most cited examples is CATL, currently the world’s largest producer of batteries for new energy vehicles. The company supplies battery systems to both Chinese and Western manufacturers, including Tesla and Stellantis, making it a critical player in the global electric vehicle market.

Beyond batteries, Chinese companies have expanded into electronics, thermal management systems, software, semiconductors, and advanced manufacturing technologies used throughout vehicle production. Ramírez said China currently holds a technological advantage in emerging mobility technologies.

“China has a technological competitive advantage in all new energy vehicles, both hybrids and fully electric vehicles,” he said. “China now leads technology development, and Western brands are inviting Chinese companies into joint ventures to facilitate reverse technology transfer.”

Data from Expert Market Research show that many of the world’s largest auto parts manufacturers are not Chinese companies. However, a significant portion of their production capacity is now located in China.

German supplier Bosch, for example, operates approximately 300 production facilities worldwide, including 34 plants in China. Japanese supplier Denso maintains around 300 manufacturing sites globally, with 22 facilities located in China.

German supplier Bosch, for example, operates approximately 300 production facilities worldwide, including 34 plants in China. Japanese supplier Denso maintains around 300 manufacturing sites globally, with 22 facilities located in China.

These figures illustrate how multinational suppliers have integrated Chinese manufacturing into their global operations. Industry experts note that China’s advantages are not limited to labor costs but also include supplier density, logistics infrastructure, raw material access, and manufacturing scale.

The country’s industrial position is reinforced by its dominance in key upstream sectors. Analysts note that China controls large portions of global processing capacity for minerals and materials used in vehicle production, particularly in batteries and electrification technologies.

According to industry observers, China’s competitive position emerged from its ability to build integrated supply chains rather than focusing solely on final vehicle assembly. Since 2012, the country has remained the world’s largest vehicle producer, supported by extensive manufacturing networks and raw material processing capabilities.

This integrated approach has also helped Chinese automakers expand internationally. In Mexico, Chinese brands continue to gain market share despite the implementation of tariffs of up to 50% on vehicles imported from countries without free trade agreements with Mexico.

In 1Q26, Chinese automakers captured 11.2% of the Mexican market, matching German manufacturers for the first time. Nine Chinese brands reported combined sales of 42,808 vehicles, representing a 25.3% increase compared with the same period in 2025.

Industry associations estimate that vehicles manufactured in China accounted for 22.9% of domestic vehicle sales during the quarter. When including brands that do not publicly disclose sales figures, the share is estimated to approach 28%.