Automobile
market in China
The Chinese passenger vehicle market hailed years of high-speed growth and entered a new phase of development. In the short term, this era is characterized by a drop in overall sales. But this is more a pause for breath than the end of the road, as the growth potential remains strong.
The
proportion of new buyers is declining, therefore attracting and maintaining the
loyalty of existing car owners is becoming increasingly important.
In a period
of intense competition and a narrowing of opportunity for weak and challenger
brands, automotive executives of both foreign and domestic brands must strive
harder to understand their customers and communicate their advantages.
Despite these results, China remains the world’s largest automotive market, and it exhibits strong demand from both prospective and existing car owners, and for both new cars and, increasingly, used vehicles.
Automobile consumers
trends in China
Potential growth of automobile market
The
percentage of automobile ownership remains relatively low in China, therefore,
considering the existing automobile ownership and the state of the highway
infrastructure, the potential growth of automobile sales is significant.
In
addition, Chinese consumers remain attracted to the idea of automobile ownership
for passion, driving and safety, suggesting long-term incremental growth.
Reach customers’ pre-purchase mind-set
Chinese consumers
are developing a deeper loyalty to brands, especially in the domestic segment,
where leading brands take nearly 80 percent market share.
Therefore improving
brand awareness and reliability is vital for brands.
Online and offline customer experience integration
Integrating both online and offline touchpoints to create an omnichannel experience that meets the changing needs of Chinese consumers, and introduces innovative service models, is essential.
New energy
vehicles as customers need
As Chinese
consumers awareness improves, and policy support is withdrawn, they are
becoming more rational in their choices regarding new energy vehicles.
Crucially, therefore a deeper understanding of customer needs, and improving
their experience will be key to driving profitability.
Live
streaming as a new opportunity for Brands
In their purchasing decision, Chinese consumers rely predominantly on four factors: friends and colleagues, family members, manufacturer websites and social media.
Due to these reasons, during the Covid-19 pandemic, Chinese automobile dealerships are turning to platforms like Douyin (TikTok) to drive up sales. They embraced live streaming as a way to keep the conversation going with potential consumers who were also stuck at home.
The number
of live streaming sessions involving the auto industry increased 15 times in
March compared to January, and the total number of attendees increased six
times.
The new
trend of automobile live-streaming has captured the attention of both consumers
and content creators with its informative, efficient and interactive way of
connecting to its users.
The use of these platforms could be a big opportunity for brands to increase their brand-awareness and to show their brand’s value to their customers, gaining visibility and increasing sales.
How to
reach Chinese consumers using e-commerce Live streaming platforms?
Some of the
most important e-commerce live streaming platforms in China:
Taobao live
Taobao Live, the dedicated livestreaming channel launched
by E-commerce giant Alibaba in 2016, generated amazing sales of 20 billion yuan
during Alibaba’s Singles’ Day 2019 shopping.
Taobao Live
allows users to watch live streams and shop at the same time. KOLs (Key Opinion
Leaders) or Livestreamers will work with a variety of brands to give their
users coupons or discounts directly and encourage consumers to shop.
Douyin
Douyin is currently the hottest short video app in
China, with more than 400 million daily active users. Despite being behind
Taobao Live in the e-commerce livestreaming, Douyin takes the second place in
China with 13% of the market. In addition, the COVID-19 epidemic has cause a
boom in Douyin livestreaming.
Kuaishou
China’s third
hottest short video app Kuaishou has more than 200 million daily active users
and holds an 8% share of the e-commerce livestreaming market in China following
Alibaba’s Taobao Live with 79% and Douyin with 13%.
Kuaishou’s
revenue from livestreaming reached 30 billion yuan in 2019 and its earnings
from gaming and e-commerce totalled several billions of yuan.
Why a brand
in automobile industry should use these platforms?
Live
streaming are very popular in China and are particularly loved by users for
their ability to be transparent and authentic.
In China,
many companies integrate live streaming into their internationalization
strategies, for their ability to engage large masses of users in minutes. The
KOLs, in all this, are the key that guides the listening.
Companies
must focus on growing their brand awareness, especially in this period of
crisis due to Covid-19.
These
platforms offer a great opportunity to you to gain visibility, to keep in touch
with your customers, to increase your followers and thus increase sales.
How a brand
should use these platforms?
Whether you are interested in boosting awareness or generating leads, a KOL can do wonders for reaching your ideal audience. Your KOL search should consist of choosing an influencer that has quality content and deep insights into their viewers.
In their purchasing decision, Chinese consumers rely mainly on manufacturers’ websites and social media.
That’s why is very important to manage social media accounts in Chinese market.
Social networks to gain visibility in Chinese market
Wechat account
WeChat is
definitely an effective tool for sharing information and news with your
followers. Marketing on WeChat can mean many things:
- new
products can be presented and promotions launched - create
exclusive competitions and games to interact with your audience - allow
the user to browse the site to receive information - pay
directly with the WeChat Wallet.
A few days
ago, the company also launched the live streaming function in the mini programs
by communicating the app-grade directly to users through a notification
inviting them to activate and try this new function.
It looks
very similar to many other live streaming systems, in fact the brand account
and the number of spectators are visible in the upper left. It is also possible
to comment and share the live broadcast.
The
peculiarity of this system is the presence of the function that directs you
directly to the purchase page. Using this function you access a page that
contains the list of all products with their description. You can then access
the product page and return to live streaming freely and at any time.
Weibo account
Sina Weibo
(新浪微博) is a
Chinese microblogging website similar to Twitter.
You can use
Weibo in different ways depending on the needs of the company. First of all,
its features make it useful for communicating quickly with many followers at
the same time. Weibo is the most open social network in China, in fact users
can see posts from anyone.
Weibo
offers brands various functions:
- increase
in brand awareness - referral
to e-commerce platforms through external links - starting
collaborations with Key Opinion Leader - word-of-mouth
spread - investments
in brand advertising (through display adv, search engine promotion and other
advertising techniques)
Sina Weibo also has many other useful features to make brands known and to interact with their community or target audience. For example, the Miaopai application allows users to share videos and record live streamsing.
What about
your website?
As I said
before when it comes to deciding which car to buy, Chinese consumers rely
predominantly manufacturer websites and social media.
Therefore
it is essential for a foreign brand to create a visible website on Baidu for
several reasons :
- Chinese
are among the world’s largest internet users. To reach Chinese users it is essential
to use Baidu. The reason is simple: it holds over 80% of the search engine
market. - Nine
out of ten Chinese users say they use Baidu to search online.
Remember
that If well indexed on Baidu, traffic to the site will increase exponentially.
So a proper Baidu SEO strategy is important.
In
addition, you should create a Chinese-language website for two reasons:
- will
be rewarded by Baidu (therefore it will be faster to load) - the
knowledge of English is not yet widespread in China.
In China
you can also buy automobile through e-commerce platforms
Cars in
China can also be purchased online and this is possible thanks to the Tmall
e-commerce platform.
For more
than a year, the Alibaba Group has been experimenting with various online sales
methods. In March of this year, Alfa Romeo sold 350 Giulia’s in just 33
seconds.
The
presence of car manufacturers on Tmall is now a constant. The e-commerce
platform also features premium brands such as Audi, BMW and Mercedes.
For years,
car manufacturers have been investing in innovative approaches for the sale of
cars and China is the market that is proving more receptive to news than any
other.
According to a McKinsey report, China will contribute more than half of the growth in car sales by 2022. And the market segment with the strongest growth will be that of luxury cars.
Do you want to know more about How to reach Chinese consumers? Contact E-Commerce China Agency a digital marketing agency, specialized in Chinese digital market.
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China Automobile Market in 2027: EV Dominance and Online Sales Growth
China is now the world’s largest electric vehicle market by a wide margin. In 2026, EVs accounted for over 45% of all new passenger car sales in China. BYD, Li Auto, NIO, and AITO (Huawei) lead domestic sales. Foreign brands like Tesla maintain strong positions, while traditional foreign automakers (Volkswagen, Toyota, GM) are rapidly losing market share to domestic EV competitors. The shift happened faster than most analysts predicted.
Online car purchasing is now mainstream for EVs. NIO and Li Auto built their entire sales model around direct online ordering with home delivery and test drive booking via app. BYD operates physical showrooms but processes a large share of orders through WeChat Mini-Programs. In 2026, over 35% of EV purchases in China involved no dealership visit at all. Buyers configured, ordered, and financed their vehicle entirely online.
Auto content on Douyin and Xiaohongshu drives discovery. New car launches now include major Douyin livestream events. BYD’s Yangwang U9 launch drew over 8 million live viewers. Xiaohongshu has become the top research platform for EV buyers under 35, who read real-owner reviews and compare charging range and software features before visiting any showroom. Auto brands without a strong Xiaohongshu presence miss the research phase entirely.
Auto accessories and aftermarket parts are thriving on e-commerce platforms. Even as vehicle hardware goes online, the aftermarket is booming. EV-specific accessories (charging cables, car covers, frunk organizers, dashcams), smart devices, and interior upgrades sell strongly on Tmall Auto and JD Auto. Foreign aftermarket brands with quality products and competitive pricing have real opportunities in this category without needing NDRC vehicle approval.
Data and software define the new competitive battleground. Chinese EV buyers increasingly evaluate vehicles on OTA update frequency, AI assistant capability (voice control, autonomous features), and app ecosystem integration. Huawei’s HarmonyOS in-car system is a major selling point for Aito and Seres vehicles. Foreign brands that cannot match this software experience face a structural disadvantage that price alone cannot compensate for.
Technical Tips for Auto and Auto Accessories in China
- Enter the auto accessories market before attempting vehicle sales. Car accessories require no NDRC vehicle approval and can be sold on Tmall Auto or JD Auto with standard product certifications. This is a faster, lower-risk entry into China’s auto consumer market while you build brand recognition.
- Build a Xiaohongshu presence for any auto-adjacent product. Chinese EV buyers are heavy Xiaohongshu users. Seed your product with real-owner content, comparison posts, and installation guides. This organic content drives search traffic that paid ads cannot replicate.
- Partner with EV community accounts on WeChat and Douyin. Each major EV brand (NIO, BYD, Li Auto) has large owner communities on WeChat and Douyin. Accessory brands that sponsor or collaborate with these communities reach the highest-intent auto buyers in China at a fraction of the cost of platform advertising.
- Ensure product compatibility information covers Chinese EV models specifically. Most Chinese buyers own BYD, NIO, or Li Auto vehicles, not Tesla or Western models. Product listings that explicitly call out compatibility with specific Chinese EV models convert significantly better than generic international product descriptions.
What Brands Say About China’s Auto Market
“We launched EV charging accessories on Tmall Auto targeting NIO and BYD owners. Within 6 months we were selling 2,000 units a month. The key was listing with explicit model compatibility for Chinese EVs. International product pages that just say ‘universal fit’ don’t convert here.”
Founder, European EV accessories brand
“Our auto brand had 20 years of history in Germany. In China, that meant nothing once BYD and NIO owned the EV narrative. We had to rebuild our brand story around software and smart features, not heritage. China forced us to modernize faster than any other market.”
China president, European automobile brand
FAQ: Real Questions Chinese Consumers Ask About Buying Cars Online
在网上买车靠谱吗？(Is buying a car online trustworthy?) For domestic EV brands, yes. NIO, Li Auto, and BYD have built fully online purchase flows with transparent pricing, home delivery, and 7-day return policies on some models. Buyers configure their vehicle on the brand’s app, pay a deposit, and receive their car at home. The process is well-established and millions of Chinese buyers have completed it without issues. For imported or traditional fuel vehicles, most purchases still involve some dealership interaction, though the research and financing stages have moved largely online.
比亚迪和蔚来哪个更值得买？(Which is worth buying, BYD or NIO?) They serve different buyers. BYD offers strong value-for-money across a wide price range (100,000-400,000 RMB), with reliable build quality and a dense charging network. NIO targets premium buyers (300,000-600,000 RMB) with a focus on battery-swap technology, a luxury service model (free home charging installation, NIO House lounges), and strong community culture. BYD suits buyers who prioritize practicality and cost efficiency. NIO suits buyers who want a premium service experience and strong brand community. Both are credible choices depending on priorities.
EAC helps auto-adjacent brands enter China’s booming EV accessories and aftermarket sector, with platform setup on Tmall Auto, JD Auto, and content strategy targeting Chinese EV owner communities.
Get a free brand audit from our team. We identify the fastest path to market for your auto product in China.
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