Multinational carmakers are accelerating efforts to localize operations in China — not only to bolster their performance in the country but to leverage their China experience for global competitiveness, according to industry experts.

"More multinational companies are actively exploring how to achieve deeper localization in research and development, operations, supply chains, and ecosystem development," said Zhang Yongwei, vice-president and secretary-general of China EV100, a Beijing-based automotive think tank.

Speaking at a recent forum, Zhang noted that numerous case studies of such localization efforts have emerged in China. These strategies are now beginning to influence not just domestic operations but reshape global business models.

"This is not a marginal shift limited to China. It's a globally relevant transformation with far-reaching implications," he said.

He added that many companies are using China as a launchpad to introduce products and technologies worldwide, leveraging their global networks and operational strength.

This trend is also enabling Chinese supply chains and partner ecosystems to expand rapidly into international markets.

"This transformation extends far beyond the multinational companies themselves," Zhang said. "It has the potential to create a fast, efficient pathway linking China's auto industry with the rest of the world."

To support this shift, Zhang proposed the establishment of a "super cooperation platform" to connect China's extensive supply-side resources with global demand for automotive development.

"We need a platform that aligns different layers of supply and demand more effectively, improves global collaboration, and accelerates China's integration into the global auto ecosystem," he said.

These strategic moves come at a time when foreign-branded cars are losing ground to domestic brands in China, and the traditional joint venture model faces growing pressure.

Zhang Lin, managing director of the German Association of the Automotive Industry (VDA) China Office, said the role of China for global automakers has fundamentally evolved.

"China is no longer just a market. It's a fulcrum for new R&D and technology deployment across global operations," he said.

According to a VDA survey, despite declining profits in 2024, nearly all member companies — both original equipment makers and suppliers — remained in the black.

Furthermore, around 70 percent of surveyed companies plan to increase investment in China starting in 2025, with more than 78 percent prioritizing R&D.

"We've entered a new era of joint venture cooperation in China," Zhang Lin said.

He emphasized that "keeping pace with China speed", referring to the rapid iteration and application of new technologies, is now essential for multinationals operating in the country.

Executives from leading carmakers also reaffirmed their long-term commitment to expanding R&D in China.

Leng Yan, executive vice-president of Mercedes-Benz China, said the company has invested more than 10.5 billion yuan ($1.46 billion) in domestic R&D over the past five years. Its Shanghai R&D center, launched in 2022, focuses on intelligent connectivity, autonomous driving, software, and big data.

In 2025, the company announced a further investment of 14 billion yuan in China to expand its localized lineup for both passenger cars and light commercial vehicles.

Yang Wu, director of government affairs and policy at BMW Brilliance Automotive, said China is home to BMW's largest and most comprehensive R&D operation outside Germany. He added that the company is conducting localized development to global standards.