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.”
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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.
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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.