TL;DRForeign automakers briefly reclaimed market share in China in early 2026 after EV subsidies expired and domestic sales dipped, but the structural picture is unchanged: Chinese brands control nearly 70% of the passenger vehicle market, NEV penetration is heading past 54%, and foreign marques from Volkswagen to Hyundai are now partnering with Chinese AI and autonomous driving companies because they cannot develop competitive software fast enough on their own. In January and February 2026, Volkswagen reclaimed the top position in China’s passenger vehicle market with a 13.9 per cent share, narrowly ahead of Geely at 13.8 per cent. Toyota’s joint...