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 Turning Point With Zeekr
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.
Partnerships Across The Industry
Other automakers are following suit:
- Toyota is co-developing China-specific EVs with GAC.
- Volkswagen expanded its collaboration with Xpeng to cover both EV and fuel models.
- Renault used a Dongfeng platform for the Dacia Spring and is developing a new electric Twingo in Shanghai.
- Ford is scouting for a Chinese partner, with CEO Jim Farley openly praising models like Xiaomi’s SU7 sedan.
- Stellantis has partnered with Leapmotor to sell EVs overseas and explore platform licensing.
- CYVN Holdings, an investor in Nio, has even developed a premium EV using Nio’s chassis and software, reportedly under the McLaren brand.
An “Intel Inside” Moment For EVs
Analysts liken this trend to the “Intel Inside” model of the 1990s, where 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.
Opportunities And Risks
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 industry, creating both opportunities and challenges for traditional manufacturers.
