China’s automotive industry still uses a significant volume of Western parts and technologies, but the level of reliance has dropped sharply in the past decade as local suppliers, engineering, and technology have caught up. The mix varies by brand: some cars are still deeply integrated with Western components, especially joint ventures, while top Chinese brands (BYD, Geely, Chery) increasingly use domestic tech in everything from batteries to infotainment. Here’s an overview with examples:
Evolving Reliance on Western Parts
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In the 1990s and 2000s, some Chinese joint ventures (e.g., SAIC-VW, FAW-Audi) had localization rates under 60%, meaning up to 40% of key parts (engine, transmission, electronics) were imported or Western-designed.wikipedia
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By the late 2010s, localization rates had climbed as high as 90% for mainstream joint ventures – today, most engines, gearboxes, and chassis for volume models are made locally, though engineered to Western specs or using licensed tech.wikipedia
Where Western Parts Still Dominate
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Luxury/Joint Venture Brands: German and Japanese brands (e.g., BMW, Mercedes, VW, Toyota) built in China still use a higher share of imported or Western-engineered components for engines, advanced infotainment, ADAS and safety systems, transmissions, and specialist materials.
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Electric Vehicle Tech: Tesla’s Shanghai-built Model 3 and Model Y use many US/German parts (batteries, drive units sourced from Panasonic, chipsets from Nvidia, driver modules from Bosch, software jointly developed, glass/airbags from Western suppliers). However, even Tesla is shifting some supply chain to local companies to cut costs and simplify logistics.itif
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Examples: Chery’s Omoda 5 for Europe, engineered in weeks using a blend of Chinese component suppliers and Western consultants for suspension, steering, and tire dynamics. Early BYD cars copied Toyota designs and used Japanese parts, but current BYD models use mostly proprietary batteries (Blade), motors, and chassis tech.reuters
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Infotainment and ADAS: Many new Chinese EVs still feature major Western chips, camera modules, and LiDAR sensors from Bosch, Continental, Valeo, NVIDIA, and Mobileye.
Recent Shifts Toward Localized Supply
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The majority of new Chinese pure-play brands (BYD, NIO, XPeng, MG, Great Wall) use largely domestic supply chains for batteries, electric motors, brakes, and in-car software, though some high-spec models retain German or US sensors and semiconductors.wired
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Local brands now account for over 60% of the Chinese car market in 2024, reflecting growing independence from Western supply and increased innovation at home.wikipedia
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Volkswagen and Toyota are partnering with Chinese EV startups (e.g., VW + XPeng) to adopt breakthrough Chinese battery and charging tech—a reversal of old trends, with Western companies now buying in to Chinese solutions.reuters+1
Notable Examples
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Tesla Model 3 (China): About 25–35% of components still Western, especially advanced chips, some drive modules, and safety electronics. Local content is growing.
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BYD Atto 3: Uses BYD’s own battery, inverter, and motor technology. Chips/sensors in top trims may come from Bosch (Germany) or Valeo (France).
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SAIC-VW Lavida: Around 85–90% local parts, but critical systems (ABS, infotainment, wiring harness) from German/Japanese sources.
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Chery Omoda 5: Developed for European export, combines Chinese core platforms with Western tire/suspension tuning and some imported electronics.reuters
Current Estimate
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Volume Chinese cars: 80–95% locally sourced parts for mainstream, mass-market models.
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Premium, export, and joint venture cars: 15–35% Western parts/content, especially for engines, advanced electronics, luxury features, and specialist safety systems.
China’s car production is drastically more self-sufficient than in past decades, but Western parts, tech, and know-how remain woven in—especially in advanced electronics, safety, and joint venture brands. Many export models for Europe, Australia, and South America also see a “re-Westernization” in tuning and compliance to meet foreign standards.
