April 23, 2026: A journalist photographs the Xiaomi SU7 Ultra car during the Xiaomi Track Day driving experience in Tianjin, northern China, ahead of the Beijing Motor Show, which opens on April 24. (Photo: GREG BAKER/AFP, Getty Images)
Greg Baker AFP | Getty Images
BEIJING – Foreign carmakers are finally catching up with their Chinese rivals in technology as they battle sluggish sales in the world’s biggest car market.
Automakers from the United States, South Korea and Germany rushed to announce new model lineups for China in time for the Beijing Auto Show, which opened on Friday.
“We have plans to really build this brand and come back. [to] Where were we before in terms of volume? [market] Please share,” General Motors’ Cadillac China vice president Will Stacy told CNBC’s Eunice Yun.
Cadillac on Wednesday unveiled its first vehicle with driver assistance technology for China, a three-row “luxury” electric SUV priced at 468,000 yuan ($68,000) and 508,800 yuan.
The vehicle, called VISTIQ, uses advanced driver assistance software and automatic parking features that can handle highways and city roads. The technology was co-developed with Chinese self-driving startup Momenta.
“We were almost ICE [internal combustion engine] Stacey said Cadillac aims to shorten production times to 18 months and compete effectively with local rivals by sourcing locally in China, while attracting customers with the promise of safety confidence.
Hyundai officially launched its all-electric IONIQ brand in China on Friday, kicking off the South Korean automaker’s most ambitious local expansion yet.
“China is where the future of mobility is being defined, and Hyundai is committed to helping define mobility in China, for China, and ultimately for the world,” Jose Muñoz, president and CEO of Hyundai Motors, said in a release.
Munoz added in an interview with CNBC’s Eunice Yun that the Hyundai automaker needs to “rethink its strategy” as China’s share of Hyundai’s total sales has declined from 17% to 4%.
Hyundai’s new IONIQ V also comes with advanced driver assistance features co-developed with Momenta and also offers voice control capabilities using an AI assistant running on the Qualcomm Snapdragon 8295 chipset.
Muñoz told CNBC that if Hyundai sells well in China, it may export the brand to Asia-Pacific, Australia and the Middle East.
Hyundai’s sales in China in March were about a third of what they were in the same month in 2019, before the pandemic. Many other foreign automakers also saw sales decline during the same period. According to statistics compiled by CNBC, Nissan’s sales in China in March were down 47% compared to March 2019, and Cadillac’s sales were down 39%.
“We are pleased to see these foreign brands being humble and recognizing and embracing the value of Chinese technology,” said Stephen Dyer, partner, managing director and head of Asian automotive and industrial consulting at AlixPartners.
He is less optimistic that foreign brands will be able to regain significant market share in China, but said there is an opportunity to bring Chinese technology to the home market.
“I think this technology will be widespread throughout the world,” Dyer said. “I don’t think you can keep it in a Chinese bottle. I think it’s already out.”
Cars with personality
Also embarking on its most ambitious Chinese product campaign, German automaker Volkswagen announced on Tuesday that it will begin implementing AI-powered voice commands in its cars in China starting in the second half of this year.
“A car should be like a companion,” said Thomas Ulbrich, chief technology officer (CTO) of Volkswagen China.
He said the company’s in-vehicle AI agents will leverage technology from Tencent, Alibaba, Baidu and others to create tools with “personality” that can anticipate drivers’ needs.
Volkswagen unveiled four cars in Beijing on Tuesday, including the ID. The company announced that the UNYX 09 was jointly developed with EV manufacturer Xpeng over two years.
The German automaker has built a research and development center in Hefei that can manage the entire production process.
Read more electric car stories
Hyundai Motor and its local state-owned partner BAIC Motor had committed 8 billion yuan to the joint venture as of December 2024.
Venture company Beijing Hyundai plans to introduce 20 new models in China over the next five years. These vehicles include the new IONIQ V, with another SUV planned for the first half of 2027, with annual sales targeted at 500,000 units.
BYD, the Chinese market leader, recorded sales of 688,993 units in China in the first three months of 2026, a 30% decrease compared to the same period in 2025. BYD sold 2.26 million battery-powered vehicles globally last year, surpassing Tesla’s 1.64 million.
On average, 10 to 15 cars go on sale in China in about a month, meaning automakers “need to stay relevant and fresh” for customers facing a plethora of choices, Nissan President and CEO Ivan Espinosa told CNBC’s Elaine Yu.
“The fact that we have established a dealership with established experience, good relationships and good service is also starting to become more and more important,” Espinosa said.
Nissan plans to launch five new energy vehicles using plug-in electric technology within the next 12 months.
The Japanese automaker has a joint venture with China’s Dongfeng and last year integrated DeepSeek AI capabilities into its N7 electric sedan.
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—CNBC’s Matthew Chin contributed to this report
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