70 Years On: China’s Auto Industry from One Truck to Global Dominance
On July 13, 1956, a single green truck rolled off a makeshift assembly line in the northeastern city of Changchun, ending China’s inability to manufacture automobiles. Seventy years later to the day, the nation that started from scratch now produces more cars than any other country on Earth — and leads the world in the electric vehicle revolution that is reshaping the global industry.
China’s automobile production and sales both exceeded 34 million units in 2025, setting a new record and maintaining the No. 1 global position for the 17th consecutive year, according to Xinhua News Agency. New energy vehicle (NEV) production reached 16.626 million units, ranking first globally for the 11th straight year, while vehicle exports hit 7.098 million — the third consecutive year at the top.
From a Frozen Field to an Industrial Powerhouse
The story begins in 1953, when Chairman Mao Zedong personally wrote the inscription for the foundation stone of the First Automobile Works (FAW) in Changchun’s Mengjiatun area. Built with Soviet assistance during China’s First Five-Year Plan, the factory mobilized resources from across the nation: over 150 senior cadres, 529 local officials, skilled workers from Beijing, Shanghai, and Tianjin, and graduates from top universities.
Construction was brutal. During the first winter of 1953, workers endured extreme cold in drafty shelters, climbing 30 meters into the air to bind steel and pour concrete. “Life was hard, but we were all focused on our work,” recalled Liu Jingchuan, FAW’s former chief designer, as reported by Xinhua. To heat the vast factory floor, the Ministry of Railways dispatched eight steam locomotives — a makeshift solution that kept construction going through the bitter winter.
On July 13, 1956, the first batch of 12 Jiefang (Liberation) brand trucks rolled off the line to thunderous applause. The Jiefang, based on the Soviet ZIS-150 design adapted for Chinese conditions, quickly became the backbone of China’s road transport and a symbol of national pride.
Reform, Joint Ventures, and the “Market for Technology” Era
By the early 1980s, the Jiefang truck had remained largely unchanged for 30 years. Sales were declining, and FAW faced an existential crisis. China’s reform and opening-up, launched in 1978, provided the answer.
In 1987, Volkswagen approached FAW seeking cooperation. FAW had already purchased Chrysler’s 488 engine production line, and Volkswagen’s chairman promised to fit the Chrysler engine into an Audi 100 — a gamble that paid off. On May 17, 1988, FAW and Audi signed a technology transfer license contract, marking the German luxury brand’s entry into China.
This pattern repeated across the industry: SAIC partnered with Volkswagen, BAIC with Mercedes-Benz, and Dongfeng with Nissan and Honda. The “market for technology” strategy was controversial — critics argued it gave away market access without sufficient technology transfer. But Li Zhihong, former director of the General Manager’s Office at FAW-Volkswagen, argued that joint ventures cultivated a generation of talent and built supply chains — including now-global giants like Fuyao Glass — that laid the foundation for China’s automotive strength.
The NEV Leap: Changing Lanes to Overtake
If the Jiefang truck represented China’s automotive “birth” and joint ventures its “growth,” then new energy vehicles represent its “coming of age.” China’s strategic bet on NEVs — described as “changing lanes to overtake” — allowed it to bypass the internal combustion engine technology where Western and Japanese automakers held decades of advantages.
The results have been transformative. NEVs now account for over 50% of new car sales in China. Companies like BYD, with its vertical integration and battery expertise, and CATL, the world’s largest battery maker, have become global powerhouses. China is accelerating R&D in solid-state batteries, next-generation chassis, and automotive chips.
“This 100 million vehicles is not the end point, but the ‘springboard’ for China’s automotive industry to continue creating brilliance,” said Cui Dongshu, secretary-general of the China Passenger Car Association, commenting on SAIC Motor’s milestone of delivering its 100 millionth vehicle on May 28, 2026 — making China one of only five countries with a “100-million-vehicle enterprise.”
A New Chapter: From Local to Global
Chinese brands are no longer content with the domestic market. BYD and Chery are expanding overseas aggressively, while even joint venture brands are going global. In June 2026, FAW-Volkswagen’s Jetta brand officially entered the Uzbekistan market, with plans to launch in Madagascar, Kazakhstan, and other emerging markets.
Volkswagen Passenger Cars Brand CEO China Stefan Ziegl said the Uzbekistan move is “the first step in our plan to explore high-growth markets through products manufactured in China,” highlighting a reversal of the traditional technology flow — foreign companies now leveraging Chinese manufacturing and supply chains for global expansion.
China FAW Group Chairman Qiu Xiandong summed up the industry’s ambition: “Facing the transformation of the global automotive industry, FAW will always take industrial service to the country and industrial strength as its mission, deeply integrating technological and industrial innovation as the fundamental path to high-quality development.”
What’s Next
As China enters its “15th Five-Year Plan” period (2026-2030), the automotive industry faces both opportunities and challenges. Overcapacity, trade tensions, and semiconductor dependency remain significant hurdles. Yet the trajectory is clear: from a single truck factory in a frozen field to the world’s dominant automotive power, China’s 70-year journey is a remarkable story of industrial transformation — and one that is far from over.
Rao Bin, known as the “Father of China’s Automobile Industry,” once said in his later years: “I am old and can no longer work, but I am willing to become a bridge, letting FAW’s cars drive over me.” That bridge now spans the globe.