German research institution: The future of the automotive industry lies in cooperation with China

Frankfurt, December 16 (Xinhua) -- Germany's Bohong Automotive Research Institute released its 2026 global passenger car market forecast report on the 15th, stating that China's importance in the global automotive market has further increased, and the future of the automotive industry lies in cooperation with China.

Without being in the Chinese market, it is impossible to truly enter the automotive industry, "said Ferdinand Dudenhofer, the author of the report, a German expert in automotive economics, and director of the Bochum Automotive Research Institute. The increasing economies of scale brought by the Chinese market and complete supply chain, as well as China's rapid development and innovation in cutting-edge technologies such as power batteries, new energy vehicles, and autonomous driving technology, have become key driving forces for promoting the electrification and intelligent transformation of the global automotive industry.

The report shows that the global passenger car market sales will exceed 81.3 million units by 2025, the highest level in 8 years. In 2025, among the world's top 15 automobile markets, the sales of passenger cars in China, the United States, India, Türkiye and other countries will grow by more than 4%; However, the performance of major European automotive markets will be lower than expected, with sales in the German market only increasing by 0.7%, while sales in France and Italy have declined by 4.8% and 2.6% respectively.

Looking ahead to 2026, the report predicts that global passenger car sales will exceed 83.4 million units, an increase of 2.6%; The sales of passenger cars in Asia will increase by about 3.8%, and the proportion of China's production and sales in the world will also further increase.

The report points out that Asia is an important engine for the growth of global automotive market production and sales, while the market share in Europe is showing a downward trend. By 2025, over 60% of passenger cars worldwide will be produced in Asia, with Europe accounting for only about 15%. The report predicts that by 2026, due to intensified industry competition and the impact of US tariff policies, Germany and even the entire Europe's share of global passenger car production will further decline.

Dudenhofer stated that Asia is the dominant force in the global automotive industry, and China holds an important position in the automotive industry. In 2026, China will continue to consolidate its position as the world's largest automobile market, producer, and exporter.