Chongqing - Global automakers including General Motors, Volkswagen and Honda are renewing Chinese joint ventures and deepening localization as the world’s largest auto market shifts toward electric and intelligent vehicles and domestic brands gain ground.
The SAIC-GM Joint Venture Renewal Signing Ceremony was held in Shanghai on August 5. (Photo/SAIC-GM)
On August 5, SAIC Motor and General Motors signed an agreement in Shanghai to extend the term of SAIC-GM by 20 years to 2047. The deal came about 10 months before the original 30-year joint venture contract was due to expire in June 2027.
Founded in 1997, SAIC-GM has sold more than 24 million vehicles over nearly three decades. Alongside the renewal, the company is shifting from “global localization” toward “China for global markets.” Under its plan, the E7 under Buick’s premium NEV sub-brand Electra will begin exports in October 2026, targeting markets including the Middle East, Africa, South America, Mexico and the Asia-Pacific region.
SAIC-GM is not alone. Last month, GAC Group and Honda signed a strategic renewal agreement extending the term of GAC Honda to 2038, with the existing equity structure unchanged. The original agreement, signed in 1998 for 30 years, was due to expire in 2028.
In November 2025, Toyota and FAW signed a memorandum of cooperation and reached a procurement agreement for 2026. The current cooperation term of FAW Toyota runs through 2030.
Luxury automakers are also extending their China partnerships. BMW and BMW Brilliance have reportedly renewed their joint-venture agreement through 2040, while Beijing Benz renewed several supporting agreements in 2025.
Global automakers deepen their China presence through capital injections and new joint ventures. Nissan and Dongfeng established a new export joint venture in 2025 with a 28-year term and registered capital of 1 billion yuan (148.31 million U.S. dollars). Beijing Hyundai received a combined capital injection of about 8 billion yuan from its two shareholders at the end of 2024.
SAIC Volkswagen moved even earlier. In November 2024, SAIC Motor and Volkswagen Group renewed their joint venture agreement for a second time, extending the partnership to 2040, nearly six years ahead of schedule. The companies also plan to launch 18 new models by 2030, including 15 developed specifically for the Chinese market.
The renewal wave comes as China’s auto market undergoes a major shift. In H1 2026, Chinese domestic brands accounted for 71.8% of the market, while joint-venture and foreign brands held a combined 28.2%. In 2020, joint-venture brands accounted for about 61.6%, compared with 38.4% for domestic brands.
The changing market balance is forcing traditional joint-venture models to evolve. In the past, joint ventures largely followed a “technology introduction plus local manufacturing” model, with foreign partners providing vehicle platforms and technologies, while Chinese partners contributed manufacturing qualifications and sales networks.
Today, local teams take a larger role in product definition, technology roadmaps and validation standards. SAIC-GM’s Xiaoyao super-fusion architecture, whose underlying definition and development were led by its China-based R&D team, is one example.
This suggests that global automakers now see China as more than a major sales market. As China advances rapidly in new-energy vehicles, intelligent technologies and the automotive supply chain, the country is also becoming an increasingly important center for automotive R&D and innovation.
The renewal wave goes beyond extending joint venture contracts. Global automakers are strengthening local research and development, designing vehicles specifically for Chinese consumers and, in some cases, exporting China-developed models to overseas markets.
Still, contract renewals do not guarantee a recovery in competitiveness. With domestic brands holding more than 70% of the market, joint-venture automakers will need to improve local R&D and decision-making efficiency and deliver new-energy and intelligent vehicles that better meet Chinese consumer demand. That will determine their performance in the next stage of competition.