# China is still the world’s largest auto market, but the mix is changing fast.

*robotics · news · 2026-04-26 · Markets Insider*

## Key points

- Chinese brands now hold about 68% of China's passenger car market, surpassing foreign brands.
- Germany's car exports to China fell 16.8% in the first two months of 2026.
- Mercedes and BMW expect China sales below 500,000 cars in 2026, lowest in a decade.
- Chinese EV makers are considered equal or better than German brands in tech and innovation.
- National pride and advanced tech are increasingly driving Chinese consumers to local brands.

**Companies:** Mercedes-Benz Group AG, Bayerische Motoren Werke AG, Volkswagen AG, BYD Company, NIO Inc., XPeng Inc., Xiaomi Corporation, Geely Automobile Holdings
**Countries:** Germany, China

[Read the full story on Markets Insider](https://markets.businessinsider.com/news/stocks/german-auto-giants-lose-share-in-china-as-byd-nio-xpeng-lead-market-shift-1036063113)

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