Alliances of Major OEMs in the Chinese Market

End of outsourced production, entry of ICT companies, reorganization of foreign-based companies

2025/04/04

Table of contents

Summary
The end of outsourced manufacturing by emerging manufacturer
Deepening alliances between ICT companies and automobile manufacturers
Restructuring of foreign-based OEMs China operations
Correlation of capital alliances among major automobile companies in the Chinese market

Summary

Maextro S800 (Source: HIMA)

The current alliances between automakers in the Chinese market can be attributed to three factors: 1) The end of "outsourced production" by emerging automakers; 2) Deepening alliances between automotive OEMs and ICT (Information and Communication Technology) companies; and 3) The restructuring of foreign-based OEMs' businesses in China.

Many of the emerging automakers were not qualified for production at the time of their establishment, so they outsourced production to the major automakers. Some emerging OEMs have acquired production credentials through acquisitions and are now producing on their own. As competition intensified in the Chinese automobile market, many emerging OEMs went bankrupt, one after another. Today, emerging OEMs have basically ended "outsourced manufacturing".

ICT companies, such as Huawei and Baidu, are deepening their partnerships with automakers in the intelligent technology field. Huawei has established close partnerships with automakers through HIMA and has already released partner brands such as Wenjie, Luxeed, Stelato, and Maextro. Baidu is deeply involved in the field of autonomous driving, and its driverless taxi, Apollo Go, announced in 2024, has attracted a great deal of attention.

As the share of NEVs in the Chinese market grows, the sales volume of foreign-based OEMs, which mainly sell gasoline powered vehicles, is declining across the board. In recent years, foreign automakers have been restructuring their operations in China one after another, seeking to launch competitive NEV models through partnerships.

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