Major foreign carmakers set to stage a comeback in China this year: analysts

Major international marques, from Tesla to Volkswagen, continued to lose market share in mainland China, as consumers increasingly favoured new domestic electric vehicle (EV) models equipped with hi-tech features.But in 2026, foreign carmakers are expected to stage a comeback when they launch models with innovative technologies, which are expected to attract buyers in spite of sluggish consumer demand, according to industry officials and analysts.“Finally, foreign OEMs [original equipment manufacturers] will fight back because they will have the same products,” said Denis Depoux, global managing director at consultancy Roland Berger. “I think this comeback will take place this year.”Competition in China would not remain a “one-way traffic” because international marques have learned from their mainland counterparts, particularly the assemblers of pure electric and plug-in hybrid vehicles, on which features most appealed to local consumers, according to Depoux.His assessment reflected how major foreign carmakers, who led the Chinese auto sector over the past three decades, remained under pressure to close the distance with domestic rivals in the world’s largest automotive and EV market.International marques, via their mainland joint ventures, delivered 7.44 million vehicles to customers in the first 11 months of 2025, data from the China Passenger Car Association (CPCA) showed.