Last Updated on December 16, 2024
Even amidst the 2020 pandemic, China’s automotive industry has seen a very minimal decline. The domestic market has even recorded a fast recovery, with 25 million vehicles produced and sold within the same year.
The resilience and rapid growth of the country’s auto industry have led to many foreign companies taking an interest in China’s thriving business scene.
With the Chinese government lifting the foreign ownership restrictions on automakers selling passenger and commercial vehicles, the competition within the Chinese market has become fiercer.
In this, we’ll discuss insights about the automobile market in China and how foreign automakers can use the country’s dynamic digital ecosystem to find B2B marketing opportunities.
How big is the automotive market in China?
In 2023, the local vehicle production reached around 30.16 million units. This number is an 11.6% increase compared to last year. Along with this, the data from the China Association of Automobile Manufacturers (CAAM) shows that the automotive sales in China recorded around 30.09 million units sold.
Among all the segments in China’s auto industry, passenger car units cover the largest market share, raking more than 26 million sales volume in 2023. It’s the segment’s highest recorded revenue in recent years.
Many reports highlighted that 2-3 new car models are released daily in China to illustrate the country’s massive vehicle exports and production. The frequency of product launches has made the landscape more competitive, but foreign companies like Volkswagen, BMW, Tesla, and Ford maintain their popularity among local consumers.
Consumer Profile of the Chinese Automotive Market
Beyond looking at the overall vehicle production and sales volume of China’s automobile industry, it’s also important to know what kind of B2B clients you’ll find within the market. This way, you’ll be able to determine how and where to find potential audiences.
Here are some insights to consider:
- 25% of car dealerships in China are focused on foreign automakers
- More than half of automotive consumers in China reside in provinces and low-tier cities
- 50% of global sales for electric vehicles are sold in China
- Price competition has not affected car purchases in China
What are the trends in the Chinese auto industry?
● Intense Market Competition
While foreign brands still hold a strong foothold in China’s automotive market, the reality is the country has seen an enormous increase in local vehicle production. Because of this, Chinese companies like BYD and SAIC are rapidly catching up with the popularity of foreign automakers in the country.
Currently, China’s automotive industry comprises over 400 market players. With China holding 50% of Original Equipment Manufacturers (OEMs) sales worldwide, it’s evident that Chinese consumers are eagerly looking for more dynamic options when buying auto parts and vehicles.
BYD store in China (Source: China Daily)
● Continued Development of Car Component Market Segments
Transmission systems, internal combustion engines, and other vehicular components show rapid growth in the local market.
While the domestic production of these pieces of equipment is increasingly advanced, the use of foreign technology on electric cars and other modern models is still rampant in China’s auto sector.
This typically happens through joint ventures, mergers, and acquisitions (M&As). With the rise of smart electric cars, businesses dealing with automotive software, hardware, chips, sensors, and intelligence technology are also gaining momentum.
In fact, China’s automotive chip market alone has reached a value of 79.46 billion yuan in 2022. This year, the projection is set to be around 90.54 billion yuan.
NXP Semiconductors NV’s (Dutch OEM) in China (Source: NXP Official Website)
● Popularity of New Energy Vehicles
Beyond traditional vehicles, the Chinese market has an ongoing craze for new-energy cars. Over the past year, this specific category has achieved an impressive sales volume of 846,000 units, 808,000 of which are passenger cars and 39,000 commercial vehicles.
It’s also worth noting that many Chinese automakers are now ramping up their new energy vehicle production to catch up with the demand of the local auto market. The Chinese government even imposes tax breaks and subsidies to encourage more investments.
Tesla’s showroom in Shanghai, China (Source: China Daily)
In 2024, 50% of car sales in China belong to new energy vehicles (NEVs). Given the current direction of the local automotive industry, there’s a high chance that this segment’s growth will remain consistent in the next six years.
Currently, the battle of electric vehicle production in the local market is between Tesla and BYD. However, due to its domestic appeal, the latter seems to dominate by a wide margin in terms of overall market revenue.
● Online Vehicle Purchases
The digitalization of the local business scene has led to increased online vehicle sales in China. In the latest record, the country holds the highest car sales volume in Asia Pacific, with approximately 2.2 million units sold in 2022.
Currently, e-commerce accounts for 12% of China’s overall revenue for passenger cars. This statistical data proves that the Chinese automobile market has the potential to grow its online vehicle sales in the coming years.
According to Forbes, consumers in China’s automobile industry increasingly rely on virtual showrooms. Both domestic and foreign brands are partnering with e-commerce platforms to promote new models and reach potential buyers.
Virtual Simulation of Xiaomi’s SU7 electric sedan on Taobao (Source: SCMP)
Best B2B Marketing Strategies for China’s Automotive Market
1. Website Localization
Your website is like your company’s digital storefront. To compete in China’s automotive B2B market, you must adapt your design, content, and user experience to fit local tastes and browsing habits.
Your web content must be in simplified Chinese, not only to help local search engines discover your website but also to help resonate with your existing audience. Take Arkamys as an example.
Source: Arkamys Official Chinese Website
This French automotive audio technology provider has a fully localized website with varying content categories, from product explainers to automotive industry news. All their web content is specifically curated to bring value to Chinese consumers.
Beyond translations, it’s also important to integrate local social media profiles into your websites. This way, you can establish credibility and authenticity in the Chinese market. You can also utilize local technologies like Baidu Maps and QR codes for a more localized user experience.
Another must-have is an ICP license number clearly displayed on your site to show compliance with Chinese Internet regulations. Without it, your content may not load or appear on local search engines, which will cost you valuable leads in the long run.
2. Search Engine Optimization
Getting noticed in China’s competitive automotive industry starts with being seen on the right search engines. Platforms like Baidu, Bing, and Sogou dominate here, not Google.
Search engine optimization means adapting to its unique algorithms, ensuring fast loading speeds, and integrating industry-relevant keywords. Try to focus on local terms for car exports, parts, and services that resonate with Chinese buyers.
Prioritize metadata, mobile responsiveness, and compliance with Chinese regulations. Remember that SEO is about aligning with cultural expectations and search habits. Staying visible also adds to your brand’s credibility and allows potential B2B partners to trust what you have to offer.
Example of a foreign brand organically appearing on Baidu search results
3. Social Media Marketing
While it’s true that 77% of vehicle sales in the Chinese market are from physical stores, local social media platforms remain crucial to every consumer’s purchasing decisions. This fact remains even when finding B2B clients in the automotive industry.
With China’s social media landscape going beyond user engagement features and extending through in-app search and e-commerce, these platforms are now considered discovery engines where businesses scout for innovation, partnerships, and suppliers.
For car makers or auto parts suppliers, maintaining an active, polished presence on these channels helps establish credibility and reach the decision-makers. With 74% of China active on social media, it can also be a good place to observe automobile consumption trends.
Examples of Chinese Social Media Content for the Automotive Industry
Regardless of what you promote on WeChat or Douyin, your content should be informative yet tailored to what Chinese buyers value. The best examples of these posts are the total vehicle production process, real-world technology applications, and customer testimonials.
It isn’t just about showcasing products but building trust through transparency. B2B audiences want to see reliability, proven expertise, and the ability to solve their unique problems.
Brands can choose to deliver these marketing messages through varying media types, such as short videos, engaging infographics, live-streaming sessions, and thought-leadership articles, all aligned with local trends and industry conversations.
4. O2O Strategy or Trade Show Participation
China’s automotive sector thrives on business relationships. Because of this, domestic trade fairs are the best place to start your research if you want to expand your network and find other companies interested in vehicle exports.
Participating in auto expos like Auto China or the Guangzhou International Auto Parts Expo offers a golden opportunity to connect with decision-makers in person, a key factor in establishing long-term B2B partnerships.
These gatherings are more than show-and-tell—they’re where real deals happen, so preparation is critical. Research who’s attending, schedule meetings beforehand, and have a bilingual team on-site to bridge communication gaps.
Exhibition booth at 2024 Beijing International Automotive Exhibition (Source: China Daily)
Beyond the trade show floor, integrating an Online-to-Offline (O2O) strategy amplifies your reach. Many Chinese businesses rely on local social media platforms to announce their participation in such events and, hopefully, generate more traffic online and offline.
Optimize your digital presence by sharing product teasers, whitepapers, or virtual demonstrations on these platforms to attract leads. After the event, you can also use these tools to nurture connections with targeted follow-ups.
5. E-Commerce Integration
China’s automotive B2B market thrives on platforms like 1688 and JD Business, where buyers expect streamlined procurement processes. To succeed here, you need more than just a storefront.
Companies should focus on creating product pages tailored for Chinese buyers, with precise technical specifications, competitive pricing, and business messaging options like Aliwangwang and WeCom for inquiries.
Localization is of the utmost importance in e-commerce. Because of this, customizing product listings to offer discounts during traditional festivals and holidays can significantly boost sales.
Auto Parts Listings on Tmall
These local platforms often facilitate e-wallet payment methods such as WeChat Pay and Alipay, which makes consumer journeys shorter and more convenient. On top of that, today’s e-commerce landscape is also integrated with live-streaming services, even in the automotive sector.
Hosting live sessions to showcase parts, accessories, or machinery allows buyers to ask real-time questions and understand product functionality. At the same time, they can click on e-commerce links connected to the content without interrupting the flow of user engagement.
6. Industry Communities and Forums
Industry communities and forums are goldmines for engagement and trust-building. Platforms like Zhihu, China’s equivalent of Quora, allow automotive professionals and enthusiasts to discuss market trends, technical challenges, and new technologies.
By actively participating in these discussions, brands can position themselves as thought leaders. Sharing insights, answering technical questions, or posting case studies tailored to Chinese industry standards fosters credibility.
Official Zhihu Profile of Tesla’s Vice President (China)
Localized forums such as CheXun and autohome.com.cn also cater specifically to automotive professionals and consumers. These platforms allow for a deeper dive into targeted content strategies.
Start by identifying trending topics, such as the rise of new energy vehicles, and contribute valuable insights or resources. Brands can spark discussions that drive attention back to their offerings.
However, we advise avoiding overly promotional content. Focus on value and genuine solutions to real problems in China’s auto industry.
Additionally, it’s worth mentioning that many Chinese professionals rely on these closed communities for industry news, collaboration, and networking.
That’s why it’s always wise to start conversations within private domain groups to demonstrate your expertise. Always align your contributions with China’s automotive landscape’s cultural and regulatory nuances.
What is the future outlook for the Chinese automotive market?
Chinese customers have embraced electric vehicles and tech-savvy car models that connect with their digital lifestyles. Demand will rise as more affordable options emerge and government policies push green mobility.
Top local brands like BYD and Nio are expanding quickly, focusing on innovation in batteries and in-car technology. Digital marketing channels, especially social platforms and live streaming will matter more than ever as consumers seek personalized experiences.
The Chinese automotive sector will remain the world’s largest, and its rapid evolution will favor those who master online engagement and sustainable solutions.
Ready to Dominate the Automotive Industry in China? Get In Touch With Us Today!
While the local component and vehicle production make China a competitive market to enter, the rapid development of this industry opens many doors of opportunities for foreign automakers and brands.
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At Sekkei Digital Group, we understand how important a solid digital presence is in China’s B2B market. With our industry experience and expertise, our team can help your business expand its audience reach and establish a strong brand position in the local automotive market.
Whether you intend to optimize your web content for local search engines or launch a social media campaign, we have all the digital solutions you need. Contact us today, and let’s discuss how you can get started.
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