Sino-German Automotive Conference Highlights New Investment and Cooperation Opportunities Amid EV Transition
Nearly 600 automotive industry leaders, business executives, policymakers, investors, and technology specialists from China and Germany gathered in Wolfsburg for the 10th Sino-German Automotive Conference, highlighting new investment opportunities and cooperation models as the global automotive industry accelerates its transition toward electric mobility and digital technologies.
Held on Friday at Autostadt, Volkswagen Group’s headquarters in Wolfsburg, Germany, the conference brought together representatives from two of the world’s most influential automotive markets. Discussions centered on how China and Germany can strengthen industrial partnerships, accelerate technological innovation, and develop new business models to address the rapidly changing automotive landscape.
The event took place at a significant moment for the global automotive sector. Electrification, software-defined vehicles, artificial intelligence, battery technologies, and increasingly complex regulatory requirements are transforming traditional automotive manufacturing and business operations. Against this backdrop, participants emphasized the importance of stronger international partnerships and shared technological development.
The conference highlighted the need for both countries to establish common priorities, exchange industrial expertise, and identify investment opportunities that can support sustainable growth. Industry representatives also discussed how cooperation between Chinese and German companies could help them respond to changing consumer expectations, intensifying competition, and the growing demand for advanced mobility solutions.
Electrification and Digitalization Reshape the Automotive Industry
Electrification and digitalization were among the central themes of the 10th Sino-German Automotive Conference. Both developments are changing how vehicles are designed, manufactured, connected, and maintained.
The shift toward electric vehicles (EVs) has created new opportunities across the automotive value chain, including battery production, charging infrastructure, power electronics, electric motors, and energy management systems. At the same time, digital technologies are becoming increasingly important as automakers introduce connected vehicles, advanced driver assistance systems, artificial intelligence, and software-based vehicle functions.
For established automotive markets such as China and Germany, these changes require significant investments in research and development, manufacturing capabilities, supply chains, and workforce skills.
Participants stressed that neither country can address all the challenges of this transformation independently. Instead, combining technological expertise, industrial experience, market access, and investment resources could help businesses develop competitive products and expand their international presence.
The discussions also reflected the importance of adapting traditional automotive business models to a market increasingly influenced by software, digital services, and electric vehicle technologies.
Lower Saxony Minister-President Highlights the Importance of Cooperation
Olaf Lies, Minister-President of Lower Saxony, emphasized the importance of the conference in bringing together automotive stakeholders to discuss the industry’s future.
According to Lies, the transition toward electrification and digitalization represents one of the most significant changes in automotive history. He noted that collaboration, knowledge exchange, and international partnerships will be essential for companies seeking to remain competitive.
“The conference brings us together to shape the future of our industry,” Lies said.
He highlighted that the automotive industry is undergoing a transformation that extends beyond the development of electric vehicles. It also involves changes in manufacturing processes, digital infrastructure, vehicle software, and business strategies.
Lies emphasized that companies and countries must learn from one another to navigate this period of technological change successfully.
His remarks also reflected the importance of Lower Saxony as a major automotive manufacturing region in Germany. The region has a strong industrial connection to the automotive sector, with Volkswagen playing a central role in its economic and manufacturing landscape.
Hosting the conference in Wolfsburg provided an opportunity for German and Chinese businesses to strengthen relationships and explore potential areas of cooperation.
The event also demonstrated the importance of maintaining international dialogue as automakers face increasing pressure to develop cleaner, more connected, and technologically advanced vehicles.
China Remains an Important Market for German Automotive Businesses
Liu Minqiang, Director General of the China International Investment Promotion Agency, highlighted the continued importance of the Chinese market for German companies.
He referred to surveys indicating that most German businesses remain optimistic about their prospects in China. According to Liu, China’s large consumer market, industrial capabilities, and ongoing green transition create significant opportunities for international partnerships.
China has become an important center for electric vehicle production, battery manufacturing, automotive software, and mobility technology development. Its extensive industrial ecosystem and rapidly developing electric vehicle market have also attracted international automotive manufacturers and suppliers.
For German companies, cooperation with Chinese businesses can provide opportunities to access advanced technologies, strengthen supply chains, and participate in the development of new mobility products.
Liu noted that the global automotive industry is experiencing rapid technological development and changing market conditions.
“The global automotive sector is at a critical juncture, marked by rapid technological iterations and restructuring market dynamics,” Liu said.
He encouraged companies to focus on improving technology, products, and services while delivering greater value to consumers.
His comments highlighted the importance of high-quality industrial development rather than relying solely on production capacity or market expansion.
The growing demand for electric vehicles, connected mobility, and intelligent automotive systems is creating opportunities for businesses that can combine innovation with practical manufacturing expertise.
Liu also emphasized that stronger bilateral cooperation could help companies from both countries respond to these developments and identify new areas of growth.
Volkswagen Highlights China’s Growing Role as an Automotive Technology Hub
Thomas Schmall, Board Member of Volkswagen AG, highlighted the changing role of China in the global automotive industry.
He stressed that China is no longer simply a major destination for vehicle sales. Instead, it has become an important technology and innovation hub for the automotive sector.
This development reflects China’s growing capabilities in electric vehicle technologies, batteries, software development, intelligent driving systems, and digital automotive solutions.
For Volkswagen, maintaining strong relationships with Chinese companies and technology partners is increasingly important as the company continues adapting its global business strategy.
Schmall emphasized that establishing reliable partnerships is particularly important during a period of accelerated industrial transformation and growing competition.
“Establishing solid partnerships is particularly crucial under the current backdrop of accelerated transformation and heightened competition,” Schmall said.
His remarks underline the growing importance of international collaboration in developing next-generation automotive technologies.
The automotive industry is moving toward a more technology-intensive operating model in which software, electronic architecture, batteries, and digital services play an increasingly important role.
As a result, automakers must work closely with technology companies, suppliers, research institutions, and investment partners to develop competitive solutions.
Volkswagen’s involvement in the conference also demonstrated the importance of China-Germany industrial relationships in the broader transformation of the global automotive sector.
Four Specialized Forums Address Key Automotive Technologies
An important part of the conference was the organization of four parallel sub-forums dedicated to major areas of automotive innovation and industrial development.
These discussions brought together representatives from hundreds of enterprises across China and Germany, providing an opportunity to exchange operational experience, discuss business challenges, and explore potential partnerships.
The four sub-forums covered the following subjects:
1. Artificial Intelligence and Software-Defined Vehicles
Artificial intelligence and software-defined vehicles (SDVs) are becoming major drivers of change in automotive engineering.
Unlike conventional vehicles, software-defined vehicles rely heavily on software platforms to manage vehicle functions, connectivity, performance, safety systems, and user experiences.
Automakers are increasingly investing in advanced electronic architectures, centralized computing platforms, over-the-air software updates, and intelligent vehicle operating systems.
Artificial intelligence is also creating opportunities in areas such as autonomous driving, driver assistance, predictive maintenance, manufacturing automation, and in-vehicle personalization.
The forum provided a platform for Chinese and German companies to discuss developments in these technologies and examine potential opportunities for collaboration.
As vehicle functions become increasingly software-based, partnerships between traditional automotive manufacturers and technology companies are expected to become more important.
2. Battery and Energy Technologies
Battery technology remains one of the most important components of the global electric vehicle transition.
The development of more efficient, affordable, durable, and sustainable batteries is essential for improving EV performance and increasing consumer adoption.
The battery and energy forum focused on an area that has become strategically important for automotive manufacturers and suppliers.
Key industry challenges include battery production costs, energy density, charging performance, material availability, manufacturing efficiency, recycling, and supply chain resilience.
China has developed significant capabilities in battery manufacturing and related supply chains, while Germany contributes extensive experience in automotive engineering, industrial production, and advanced manufacturing systems.
Combining these strengths could create opportunities for joint development, technology exchange, and investment in future battery solutions.
The broader energy transition also creates demand for improved charging infrastructure, energy storage systems, and more efficient integration between vehicles and electricity networks.
3. Future Factory Building
The future factory building forum examined how automotive manufacturing facilities can adapt to the next generation of vehicle production.
Traditional automotive factories are undergoing significant changes as manufacturers introduce electric vehicle platforms, advanced robotics, artificial intelligence, digital production systems, and automated quality inspection.
Manufacturing flexibility has become increasingly important as automakers seek to produce different vehicle models and powertrain configurations while controlling costs.
Smart factories can use connected equipment, industrial software, data analytics, and automated systems to improve productivity and reduce manufacturing downtime.
The transition toward electric vehicles also requires changes to production lines, particularly in battery assembly, electric drive systems, and vehicle electronics.
German companies have extensive experience in industrial engineering and manufacturing automation, while Chinese businesses have developed rapidly in areas such as intelligent manufacturing and large-scale EV production.
The forum highlighted the potential to combine these capabilities to develop more efficient and technologically advanced manufacturing facilities.
4. Regulation and Compliance
Regulatory requirements and compliance standards are becoming increasingly important as automotive companies expand internationally.
Manufacturers must address different safety requirements, environmental regulations, data protection rules, product certification procedures, and market-specific standards.
The growing use of connected vehicle technologies and artificial intelligence also creates new regulatory challenges.
Automotive companies must consider how vehicle data is collected, stored, processed, and shared while ensuring compliance with applicable regulations.
The regulation and compliance forum provided an opportunity for industry representatives to exchange perspectives on these challenges.
For businesses operating in both China and Germany, understanding differences in regulatory environments is essential for managing investments, developing products, and entering new markets.
Improved communication and cooperation between companies and relevant stakeholders can help reduce uncertainty and support more efficient international business operations.
Complementary Strengths Create New Investment Opportunities
One of the major conclusions emerging from the conference was that China and Germany possess different but complementary strengths across important automotive technology segments.
Germany has a long-established automotive industry supported by engineering expertise, premium vehicle manufacturing, industrial automation, research institutions, and an extensive supplier network.
China has developed strong capabilities in electric vehicle production, battery technologies, automotive electronics, digital platforms, and large-scale manufacturing.
These strengths create opportunities for cooperation across several parts of the automotive value chain.
For example, German manufacturers and suppliers can explore partnerships with Chinese companies involved in battery development, intelligent vehicle systems, and electric mobility solutions.
Similarly, Chinese automotive businesses can benefit from Germany’s engineering expertise, manufacturing experience, industrial technologies, and established international business networks.
The transition toward electric and digital mobility is also creating opportunities for new investment models.
Rather than focusing exclusively on traditional manufacturing partnerships, companies can explore cooperation in research and development, technology licensing, joint ventures, component production, software development, and industrial investment.
These approaches could help businesses share investment risks, access specialized expertise, and accelerate the commercialization of new technologies.
Conference participants emphasized that stronger cooperation could also support international market expansion and help both countries respond to changing global consumer demand.
Global Automotive Competition Creates Pressure for Innovation
The global automotive industry is becoming increasingly competitive as manufacturers from different regions invest in electric mobility, intelligent driving, connected vehicles, and next-generation manufacturing.
Traditional automakers are facing competition from emerging electric vehicle manufacturers and technology companies entering the mobility sector.
This changing environment is increasing pressure on businesses to improve product development speed, manufacturing efficiency, software capabilities, and cost competitiveness.
The conference discussions highlighted the importance of innovation as a central factor in maintaining long-term competitiveness.
For China and Germany, closer industrial relationships could provide opportunities to combine their resources and develop solutions for international markets.
However, successful cooperation will also depend on establishing reliable partnerships, understanding regulatory differences, protecting intellectual property, and building sustainable business relationships.
The conference provided a platform for industry leaders to discuss these broader challenges while identifying potential areas for future collaboration.
Volkswagen Supports the Growing China-Germany Automotive Partnership
Volkswagen played an important strategic supporting role in this year’s conference, which was held at the company’s headquarters in Wolfsburg.
The company’s participation reflected its long-standing industrial presence in China and its interest in strengthening relationships with businesses and technology partners across both markets.
The automotive sector’s transformation is creating new requirements for global manufacturers, particularly in areas such as electric vehicle platforms, battery systems, digital services, software development, and intelligent manufacturing.
As one of the major international automotive manufacturers, Volkswagen operates in an industry where technological collaboration and regional market expertise are becoming increasingly important.
The conference offered an opportunity for companies across the automotive ecosystem to exchange ideas and explore how established manufacturers, suppliers, and technology businesses can work together during this transition.
Largest Germany-Based Edition of the Annual Conference
The 10th Sino-German Automotive Conference was organized by the Investment Promotion Agency of China’s Ministry of Commerce in cooperation with automotive clusters from nearly ten German federal states.
The annual event alternates between China and Germany, providing a recurring platform for business discussions, investment promotion, and industrial cooperation between the two countries.
This year’s conference marked the largest edition held in Germany to date, attracting nearly 600 industry leaders and representatives from hundreds of enterprises.
Its scale reflected the continued importance of the automotive relationship between China and Germany, particularly as both countries navigate the transition toward electrification and digital mobility.
The participation of government representatives, automotive manufacturers, technology businesses, investors, and industry associations demonstrated the broad range of stakeholders involved in shaping the future of the sector.
Stronger Partnerships Could Shape the Future of Global Mobility
The 10th Sino-German Automotive Conference highlighted how the automotive industry is moving beyond traditional manufacturing partnerships toward broader cooperation involving technology, investment, software, energy, and intelligent production.
China and Germany have significant opportunities to work together in electric vehicle development, battery technologies, artificial intelligence, software-defined vehicles, and smart manufacturing.
The discussions in Wolfsburg also demonstrated that international cooperation will remain important as automotive companies respond to technological disruption, evolving regulations, and increasing global competition.
For manufacturers and suppliers, the next phase of industrial development will require greater flexibility, continuous innovation, and the ability to build partnerships across international markets.
Although the conference did not announce specific joint investment agreements, its discussions established an important platform for exploring future business opportunities and strengthening bilateral industry relationships.
With nearly 600 participants attending the event, the 10th Sino-German Automotive Conference reinforced the importance of China-Germany cooperation in the global automotive transition.
As electric mobility and digital technologies continue to reshape the industry, partnerships built on complementary capabilities, technological innovation, and shared investment opportunities could play an increasingly important role in determining the future direction of global automotive manufacturing.
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