Chinese carmakers seek cooperation after weak home market
New figures show why Chinese automakers want to pool production, technology and sales channels.
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Chinese carmakers are increasingly turning to cooperation and overseas sales as the domestic market comes under pressure. New figures for September show a sharp fall in domestic car sales, while exports continued to grow strongly.
China exported around 919,000 passenger cars in September, 64 per cent more than in the same month last year. In the first nine months of 2026, more than 7.1 million passenger cars went abroad, according to figures from the China Association of Automobile Manufacturers, Associated Press reported on Monday.
At the same time, domestic sales fell. According to the Chinese trade association for car dealers, 1.618 million passenger cars were sold on the Chinese market in September, 28 per cent fewer than a year earlier. Figures from different trade associations vary slightly because of definitions and measurement times, but point in the same direction: the domestic market is shrinking, while exports offer an increasingly important outlet.
Electric cars and plug-in hybrids in particular are driving export growth. The China Passenger Car Association reported that new energy vehicles accounted for 60.8 per cent of passenger-car exports in September. The sales figures also show that Chinese brands are retaining their position at home, but competition between manufacturers remains fierce.
Carmakers are therefore seeking one another out. FAW and Guangzhou Automobile Group, two state-owned companies, are working on an arrangement under which GAC will acquire a stake in a joint venture between FAW and Toyota. According to Caixin, the move is part of a broader effort to organise research, production, sales and components more efficiently.
The Chinese government has encouraged cooperation between carmakers in recent times. Caixin wrote that a plan for the development of smart and connected electric cars encourages mergers, acquisitions and cross-regional cooperation. The aim is to reduce duplicate investment and excess production capacity.
For European carmakers, the export figures increase competitive pressure, even though Chinese statistics in themselves say nothing about sales in the Netherlands. More Chinese production sold outside China could affect prices, suppliers and the debate over trade measures. Whether cooperation between Chinese companies will actually lead to less overcapacity remains to be seen.
One story, several perspectives
What is established
- Chinese domestic passenger-car sales fell sharply in September.
- Exports of Chinese passenger cars grew substantially.
- Chinese carmakers are seeking cooperation and consolidation.
- The Chinese government is encouraging cooperation in the sector.
Left
Arguments Targeted cooperation can limit a chaotic price war and the waste of raw materials. A government may help strategic industries preserve jobs, technological expertise and production capacity.
Values Jobs, industrial planning, affordable mobility and protection against market failure.
Consequences Fewer duplicate factories and more stable companies could accelerate the transition to electric mobility, but workers and regions may bear the costs of restructuring.
Centre
Arguments Consolidation can be rational if it demonstrably reduces capacity and falls under transparent competition rules. Governments should allow cooperation, but not automatically approve every form of state aid or merger.
Values Efficiency, oversight, consumer interests and an orderly industrial transition.
Consequences A smaller but healthier sector could improve innovation and security of supply, while fewer competitors could also lead to higher prices or less choice.
Right
Arguments State-directed cooperation can artificially keep inefficient companies afloat and distort competition. Companies that are not viable should, from this perspective, be allowed to disappear.
Values Market discipline, entrepreneurship, property rights and fair international competition.
Consequences State aid could trigger trade disputes and European protectionist measures, while taxpayers would ultimately bear the risk of failed consolidation.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The current figures and the cooperation described can be found in public industry and press sources. The possible consequences for Europe are presented as analysis rather than established fact.
- confirmed China exported around 919,000 passenger cars in September, 64 per cent more than a year earlier. — Reported by Associated Press on the basis of figures from the Chinese automobile industry association. source
- confirmed Chinese domestic passenger-car sales fell by around 28 per cent in September. — Confirmed by the China Passenger Car Association. source
- confirmed New energy vehicles accounted for 60.8 per cent of passenger-car exports in September. — Mentioned in the September analysis by the Chinese trade association. source
- confirmed FAW and GAC are working on an arrangement involving a joint venture with Toyota. — Described by Caixin Global. source
- confirmed China is encouraging mergers, acquisitions and cooperation in the smart electric-car industry. — Caixin describes the policy direction and the relevant industry plan. source
Editor's note
The export and sales figures are from 12 October. The cooperation between FAW and GAC is older and serves as context. The effects on European prices and market shares cannot yet be established.Sources
- China’s carmakers rely on overseas markets as monthly domestic sales decline continues — Associated Press
- 2026年9月份全国乘用车市场分析 — China Passenger Car Association
- Two Major State-Owned Carmakers Kick Off Consolidation to Boost Growth in Home Market — Caixin Global
More on this in Dutch media
- NOS — „china auto-industrie”
- Het Parool — „china auto-industrie”
- de Volkskrant — „china auto-industrie”