Carmakers reshaping competition, sustaining long-term growth trajectory

As China's auto sector shifts from rapid expansion to higher-quality development, automotive culture is emerging as a crucial driver for unlocking new value, reshaping competition and sustaining long-term growth, industry experts said.

"Automotive culture is a core driving force in shifting the industry from scale-driven cutthroat competition to value creation," said Wu Songquan, senior chief expert at the China Automotive Technology and Research Center.

Specifically, it can help elevate competition beyond homogeneous hardware, software and price battles to emotional experiences and lifestyle identity, enabling companies to extend value chains, generate new demand and rebuild brand relationships, Wu said.

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At the overall industrial level, the expert said automotive culture can significantly expand value creation beyond vehicle manufacturing into high-margin aftermarket segments. Areas closely linked to car culture — such as vehicle modification, classic cars, professional training and premium services — form a profitable "long-tail market" that broadens revenue sources and improves resilience across the industry chain.

Policy support is also reinforcing the extended auto industry chain. According to an action plan released by the Ministry of Industry and Information Technology and five other departments last month, China will promote pilot reforms in automobile circulation and consumption, especially through expanding car-related consumption across the entire value chain, and aim to grow the intelligent connected vehicles sector to more than 1 trillion yuan ($142.7 billion) in market value by 2027.

The economic spillover effects are already visible. Automotive culture-related activities can strongly stimulate tourism, catering and retail in host regions, while the rise of self-driving travel has directly energized rural economies along popular routes.

"These new formats transform vehicles from transportation tools into social and entertainment hubs, opening up a 'second growth curve' less constrained by traditional sales cycles," Wu added.

An example can be found in Beijing, where visits to Xiaomi's auto plant have become a popular attraction, with more than 100,000 visits registered so far to tour the facility. To meet students' demand during winter holidays, the factory plans to open 126 tour sessions in January.

Similarly, FAW Group's culture and tourism unit — launched last year — has transformed the company's industrial heritage into immersive cultural and tourism experiences. This year alone, it has rolled out three themed tour routes and four educational study programs, attracting 150,000 visitors.

"For automakers, technology underpins brand strength, while culture represents the soul of the brand. Both must be developed with equal emphasis," said Wei Jianjun, chairman of Great Wall Motor, adding that during the upcoming 15th Five-Year Plan period (2026-30), China's auto sector will enter a strategic phase of moving from being a major automobile producer to becoming a true automotive powerhouse.

From a broader industry perspective, conditions for the formation of automotive culture are increasingly in place. "The formation of automotive culture depends on two conditions: a sufficient historical foundation and a society with a large number of automobiles," said Liu Yan, deputy secretary-general of the China Association of Automobile Manufacturers (CAAM).

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According to CAAM data, from January to November, China's automobile production and sales reached 31.231 million units and 31.127 million units, respectively, up 11.9 percent and 11.4 percent year-on-year, both hitting record highs.

Data from the China Passenger Car Association also showed that in August, China accounted for 38 percent of the global auto market, up 4 percentage points year-on-year and also a record high, providing a solid scale foundation for cultural development.

Looking ahead, Liu added that while new forms such as automotive culture festivals across China have played an important role in popularizing car culture, many still face gaps in industry integration, market connection and public participation.

"With the government setting the stage and enterprises actively taking the lead, public participation and coordinated industry-market interaction, as well as automotive cultural festivals, should evolve into events truly loved by people," she said, adding that driven by new consumption trends led by younger generations, automotive culture in the new era is set to take deeper root among the general public.

lijiaying@chinadaily.com.cn