Joint Ventures and Foreign Brands Stall in China as Domestic EVs Surge

Over the past five years, as Chinese domestic brands have accelerated their transition toward new energy vehicles (NEVs) and new domestic EV makers have risen, joint-venture and foreign brands—which long dominated the market—have faced unprecedented challenges. In 2023, luxury brands such as Porsche and Maserati saw sharp declines in sales, while Mercedes-Benz, BMW, and Audi all resorted to significant price cuts to survive. Among Japanese automakers, only Toyota remained relatively stable, while Honda experienced a rapid contraction. Renault’s CEO even bluntly stated that “competition in China is too intense,” confirming the company would not return to the Chinese market in the near term. Currently, domestically produced NEVs are delivering what many describe as a “dimensionality-reducing strike” against joint-venture internal combustion engine vehicles, thanks to faster product iteration cycles, smarter features tailored to local consumer preferences, and compelling pricing advantages. Most foreign brands, constrained by global platform strategies and insufficient focus on the Chinese market, have struggled to develop competitive NEV offerings. As a result, they find themselves ill-equipped to withstand intense price wars and mounting pressure from rapid technological advancements—trapped in an awkward dilemma: staying is difficult, yet leaving is hard to accept.