China leads global EV race

Closer look: Visitors check out the Freelander SUV brand during its launch at the Museum of Art Pudong in Shanghai. The marque will target global markets with a planned lineup of six models over the next five years. — Photo: China Daily

AUTOMAKERS are increasingly turning to China to revive legacy brands and accelerate their transition to electrification, marking a structural shift in the global auto industry.

The trend has been highlighted by recent developments involving Jaguar Land Rover’s Freelander revival through its collaboration with Chery, and Stellantis’ expanded partnership with Dongfeng Motor to jointly produce new Peugeot and Jeep models in China for both domestic sales and global export.

Taken together, the projects suggest that China is evolving from a key sales market into a core development and production base for global automotive brands navigating the electric transition.

Jaguar Land Rover’s Freelander project is widely seen as an early example of this shift.

The model, once a mainstream sports utility vehicle nameplate within the Land Rover portfolio, was upgraded into a brand through a partnership with Chery in March.

Under the new arrangement, Jaguar Land Rover will contribute design and brand expertise, while Chery will lead supply-chain integration and intelligent vehicle development.

Positioned as a premium new energy vehicle (NEV) marque, Freelander will target global markets with a planned lineup of six models over the next five years.

The new brand will be underpinned by a dedicated electric vehicle (EV) platform compatible with battery-electric, plug-in hybrid and extended-range powertrains.

Freelander will also leverage partnerships with Chinese technology suppliers including Huawei and CATL to bolster its competitiveness.

Another example comes from Stellantis, which in May signed a strategic agreement with Dongfeng to deepen their long-standing partnership in China.

Under the plan, the joint venture (JV) Dongfeng Peugeot Citroen Automobile will begin production of two new Peugeot-branded NEVs at its Wuhan plant in Hubei province from 2027, with vehicles designed for both domestic and global export markets.

The project includes the production of two new electrified Jeep models at the same plant, marking the brand’s return to manufacturing in China after the dissolution of its JV with GAC in 2022.

The Jeep models will incorporate technology from Dongfeng’s electric off-road platform, underscoring the increasing role of Chinese engineering in supporting global brands’ electrification strategies.

The deals will benefit from “Stellantis’ global layout advantages and Dongfeng’s intelligent EV technologies”, says Dongfeng chairman Yang Qing.

Industry observers say the two cases reflect a broader structural adjustment in the global auto industry, as traditional automakers face mounting pressure to reduce costs and accelerate electrification timelines.

China’s NEV industry has built a leading position across batteries, vehicle platforms, software integration and manufacturing scale. This enables domestic partners to play a more central role in global vehicle development programmes.

According to industry data, Chinese manufacturers now account for a dominant share of global EV battery output and are expanding their presence in overseas markets, particularly Europe.

This has intensified competition for legacy automakers, many of which are struggling to match the speed and cost efficiency of Chinese NEV development cycles.

As a result, the old collaboration models of foreign tech plus Chinese market have reversed, with Chinese partners increasingly providing underlying EV platforms and supply chain systems, while global brands contribute brand equity and international distribution networks.

Analysts say the pattern is visible across multiple partnerships, including Volkswagen’s cooperation with Chinese NEV firm XPeng on software and platforms, Toyota’s expansion of China-based development activities, and Audi’s localisation strategy with the launch of models co-developed with SAIC.

“China is at the core of our transformation and a key driver of our global ambitions,” Volkswagen China chief executive officer Oliver Blume says. “China is not just a market for Volkswagen Group.

“China makes us better.”

Some analysts describe the shift as a pragmatic response to technological realities in the EV transition.

Others argue it reflects a longer-term rebalancing of industrial capabilities, with China increasingly acting as a hub in the global automotive value chain.

“China is becoming the operating system of the global EV industry,” one industry observer says, noting that legacy automakers are increasingly dependent on Chinese partners for speed, scale and system-level integration.

While global brands still provide brand recognition and distribution reach, the underlying technological stack is increasingly being developed and industrialised in China.

The shift does not necessarily signal a loss of competitiveness for those foreign automakers, but it does suggest a redistribution of roles within the global industry, say analysts.

They add that China’s position is moving beyond manufacturing hub status towards a system-level enabler of global EV development. — China Daily/ANN