Strong competitive pressure is taking its toll: German automakers are changing tactics and moving their brains to China

  • German automakers in China are increasing their emphasis on local research and development.
  • 73% of German companies already carry out research and development in China.
  • Successful innovations in the Chinese market often have a high chance of succeeding globally.
  • Localizing research in China accelerates innovation while significantly reducing costs.

Due to strong competitive pressure, German car companies operating in China are increasingly focusing on local research and developmentj, the German Foreign Chamber of Commerce (AHK) in Beijing announced on Tuesday. Research and development activities are already carried out in China by 73% of 42 companies, who took part in the new survey, which is four percentage points more compared to 2024. TASR reports on this based on a report from the DPA agency.

The share of car companies engaged in research and development in China not only for the local market but also for global markets increased from 12% to 33% in the same period. Innovations that are successful in the Chinese market often have good prospects for global success, said Jan Roennfeld, AHK’s president for South and Southwest China. At the same time, according to 43% of respondents, the localization of research and development in China led to an acceleration of the pace of introducing innovations compared to Germany. Another 79% said that localization has reduced their costs.

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