Global carmakers are increasingly leaning on Chinese electric vehicle (EV) platforms, batteries, and software to cut costs and fast-track development. From Ford and Toyota to Renault, Volkswagen, and Audi, several leading automakers are entering partnerships with Chinese firms to launch competitive EVs in record time.
Audi’s shift began in 2021 when executives were stunned by Geely’s Zeekr 001—a long-range, European-styled EV. This led to a partnership with SAIC, producing the Audi E5 Sportback in just 18 months, powered by Chinese batteries, drive systems, and software. Priced at $33,000, deliveries begin this month in China.
Other automakers are following suit:
Analysts liken this trend to the “Intel Inside” model of the 1990swhere Chinese EV firms provide chassis, batteries, and software as ready-made kits. This allows legacy automakers to save billions in R&D and years in development, while Chinese companies secure licensing revenue amid a domestic price war and trade pressures.
Experts call the strategy a “win-win,” enabling automakers to bring higher-quality EVs to market faster. However, some warn of risks. Former Aston Martin CEO Andy Palmer noted that heavy reliance on external technology could reduce legacy automakers to “just retailers.” To counter this, companies like Volkswagen are blending Chinese systems with their own to maintain brand identity.
With global EV competition intensifying, Chinese technology partnerships may reshape the auto industrycreating both opportunities and challenges for traditional manufacturers.
