The German Chamber of Commerce in China, in collaboration with Bearing Point, has published three results of the automotive industry section of the Innovation Report 2026. 257 member companies of the German Chamber participated in the survey between March 16 and April 10, 2026, including 42 from the automotive industry. The full report is scheduled to be unveiled in August 2026. The full report is scheduled to be unveiled in August 2026.
- China-based R&D Serving Both Local and Global Markets Nearly Tripled: Over the past two years, the share of German companies from the automotive industry in China with R&D activities in China that serve both the Chinese and global markets nearly tripled, rising from 12% to 33%. At the same time, the overall share of German companies from the automotive industry in China with R&D and innovation operations in China increases by 4 percentage points to 73%. Jan Roennfeld, Executive Director and Board Member of the German Chamber of Commerce in China – South & Southwest China, comments: “As competitive pressure and the need to innovate intensify, the Chinese market is becoming an important testing ground. Innovations that succeed in the Chinese market are often well positioned for global success.”
- Localized R&D Speeds Up Companies Significantly: 81% of companies from the automotive industry say that localizing their R&D in China has accelerated their development speed over the past two years compared with Germany. Notable, 43% say their innovation speed increased substantially – by more than 40%. “To succeed and grow in China and globally, German companies must keep pace with their Chinese competitors. For German companies from the automotive sector, localized R&D is now a central pillar of their strategy,” explains Jan Roennfeld. He adds: “We are seeing long-term strategic responses from our members to an increasingly tough market environment.“
- Vast Majority Saves Costs with Localized R&D and Partnerships: 79% of companies from the automotive industry report that localized R&D in China has lowered their R&D costs versus Germany over the past two years; 70% say innovation partnerships in China have done the same. “The companies’ strategies are paying off: In a market with intense price pressure, every cost reduction directly strengthens the competitiveness,” says Jan Roennfeld.