2026 China Auto Chongqing Forum Focuses on Industry Transformation, Value Competition, Globalization, and AI Impact

On June 12, 2026, the 2026 China Automotive Chongqing Forum opened at the Yuelai International Convention Center in Chongqing. Co-organized by the Automotive Division of the China Council for the Promotion of International Trade (CCPIT), the Automotive Chamber of Commerce of China Chamber of International Commerce (CCOIC), and the Organizing Committee of the Chongqing International Automobile Exhibition, this year’s forum is themed “Shaping the Future of the Industry in an Era of Transformation.” The forum brought together representatives from government authorities, automakers, supply chain enterprises, and delegations from multiple countries. The opening ceremony was chaired by Yang Lin, Vice President of the CCPIT Automotive Division. Wang Xia, President of the division, delivered welcoming remarks. Speeches were also given by Chen Jian, former Vice Minister of Commerce; Li Yanxia, Member of the Standing Committee of the Party Leadership Group of China Machinery Industry Federation; Wang Han, Deputy Director of Chongqing Municipal Commission of Economy and Information Technology; and Zhou Qing, Counselor of the Chongqing Municipal People's Government. Wang Xia raised three core questions facing the industry: First, is a "value war" essential for the sector’s survival and development? He noted that passenger vehicle retail sales in the first five months of 2026 declined by nearly 20% year-on-year, with the industry’s profit margin standing at just 3.2%. The marginal effect of price wars is waning, and some brands have already begun scaling back discounts. Second, is globalization a mandatory course? He stressed that true globalization must be grounded in win-win cooperation. Third, will AI rewrite the fundamental logic of the industry? He argued that AI’s impact extends far beyond the technological level. Chen Jian analyzed that the current industry transformation stems from shifts in the global economic landscape and evolving development demands. He pointed out that "involution" (excessive internal competition) essentially reflects destructive rivalry, driven primarily by severe product homogenization, limited growth space, and crude competitive practices. He recommended addressing involution through reform and opening-up, cautioning companies against replicating domestic cutthroat competition models when expanding overseas. Instead, they should strengthen strategic planning for international operations, build robust service systems, and enhance security mechanisms. Li Yanxia stated that the automotive industry is transitioning from traditional transportation tools to intelligent terminals, with future competition centering on innovation systems, industrial ecosystems, and comprehensive capabilities. Citing data, she noted that China sold 9.57 million vehicles from January to April 2026, with new energy vehicles (NEVs) accounting for 45% of total sales and exports surging by 61.5% year-on-year. She urged the industry to uphold innovation-driven development, value creation, and open collaboration, advancing internationalization from “product export” to “systemic export.” Wang Han reported that Chongqing produced 2.788 million vehicles in 2025—the highest among all Chinese cities—including 1.296 million NEVs, a 30-fold increase compared to 2020. The city has established a cluster comprising 18 OEMs and over 1,200 large-scale auto parts suppliers, achieving full local coverage of intelligent connected NEV components. The average selling price of mainstream NEV models reached RMB 240,000, with high-end models priced above RMB 300,000 accounting for 16% of NEV sales. Changan Automobile has obtained China’s first batch of conditional L3 autonomous driving permits. Chongqing will accelerate the construction of an “Industry Brain + Future Factory” model to fast-track its ambition of becoming a global hub for intelligent connected NEVs. Zhou Qing summarized seven key characteristics of China’s auto industry in the first five months of 2026: robust domestic demand, strong exports, NEV leadership, contraction in ICE vehicles, declining foreign-brand market share, accelerated product and technology iteration, and rising industry concentration—amid ongoing price wars and mounting profit pressure. He outlined Chongqing’s targets: exceeding 3.8 million vehicles in annual production by 2030, with over 2.5 million NEVs in circulation and exports surpassing 1.5 million units. He emphasized that the current period represents a critical window for industrial transformation and called on all stakeholders to collaborate in driving high-quality development.