Summary of Key Points
In the first half of this year, joint-venture brands have launched a plethora of new energy vehicles (NEVs) tailored for the Chinese market. Initially, they achieved impressive sales figures by encouraging existing car owners to upgrade their vehicles (for example, the GAC Toyota Boltzhi sold over 10,000 units in just three months, and the Dongfeng Nissan NX8 delivered over 10,000 units within two months). However, the overall sales structure remains dominated by conventional fuel-powered cars, with NEVs accounting for only 1-3% of total sales. These brands also face the challenge of rapidly fading popularity among new customers—most NEV models see a sharp decline in sales shortly after their launch. Despite having a network of 4S dealerships and a base of loyal users, joint-venture brands have not been able to attract new customers due to factors such as rushed development, slow product iteration, and lengthy decision-making processes. They are attempting to sustain interest through OTA (over-the-air) updates, new product launches, and enhanced safety measures.
Detailed Analysis
1. NEVs Taking Center Stage, Initial Sales Are Promising
Joint-venture brands have finally begun to prioritize NEVs: in their stores in Beijing, models like the GAC Toyota Boltzhi, Buick, and Dongfeng Nissan are displayed in the most prominent areas, with fuel-powered cars relegated to secondary positions. The initial sales results were positive:
- The GAC Toyota Boltzhi sold over 50,000 units in the first half of the year, with the Boltzhi 3X leading among joint-venture pure electric vehicles for ten consecutive months. The Boltzhi 7 delivered over 10,000 units within three months of its launch.
- The Buick Zhijing E7 was in short supply at launch but is now available in certain configurations and ranks among the top sellers in its category.
- The Dongfeng Nissan NX8 delivered over 10,000 units in two months and even became the best-selling mid-to-large SUV among joint-venture brands in May.
These achievements are a result of these brands dedicating more sales resources to NEVs, such as providing larger display spaces and giving them priority in sales efforts.
2. Customers Are Mostly Existing Owners Upgrading Their Vehicles; No New Customer Acquisition
Most buyers of joint-venture NEVs are existing customers:
- The Buick Zhijing E7 is primarily purchased by individuals aged 35-40 who previously drove Buick fuel-powered cars. Families with children often look for features like rear entertainment screens and in-car refrigerators.
- Some customers of the Dongfeng Nissan NX8 have been driving Japanese-made vehicles for ten years; after considering other options, they chose a joint-venture brand due to concerns about potential financial risks (such as company failures).
- The SAIC Volkswagen ID.ERA 9X has even drawn some customers who were originally planning to buy the Tiguan fuel-powered model.
Their needs are contradictory: they want the intelligent features of newer brands (such as autonomous driving, large screens, and fast charging) while also seeking the reliability and support of joint-venture brands. However, this means that NEV sales mainly rely on transferring orders from existing customers of the same brand, rather than attracting new users.
3. Fuel-Powered Cars Remain the Mainstay; Low Penetration of NEVs
Despite NEVs being highlighted, fuel-powered cars still dominate sales:
- GAC Toyota stores see monthly sales in the hundreds, with the Camry accounting for nearly half of those sales.
- The proportion of NEV sales among joint-venture brands ranges from 1-3%: Dongfeng Nissan and GAC Toyota at around 3%, Buick at less than 2%, and SAIC Volkswagen at just 1%.
- According to data from the China Association of Automobile Manufacturers, the penetration of NEVs by joint-venture brands was only 11.9% in June 2026, compared to 81.8% for domestic brands—a seven-fold difference!
In other words, the core business of joint-venture brands remains fuel-powered cars, with NEVs serving as a supplementary option.
4. Rapid Rise and Fall in New Vehicle Popularity Due to Rushed Development
Many joint-venture NEV models experience a quick decline in sales:
- The Dongfeng Nissan N7 was once the best-selling joint-venture pure electric sedan, but now only sells around 1,200 units per month.
- The Buick Zhijing E7 sold nearly 8,000 units in May but saw its sales drop to less than 6,000 units in June, a 30% decrease.
Industry experts attribute this to the rushed development of these NEVs: they were created as temporary solutions to meet short-term sales targets without long-term planning. Additionally, the rapid iteration of smart electric vehicles (newer brands update 75% of their product portfolio every three years, while joint-venture brands only do 25%-33%) and the lengthy decision-making processes at joint-venture brands make it difficult to keep up with market trends.
5. Joint-Venture Brands’ Strategies to Survive
To retain customers, joint-venture brands are adopting practices from newer brands:
- Continuous Product Updates: The GAC Toyota Boltzhi 3X has undergone ten user meetings and received thousands of feedback suggestions, leading to three OTA updates. They plan to release one or two new models each year and will also introduce extended-range versions of the Highlander and Serena.
- Enhanced Safety Measures: GAC Toyota guarantees that manufacturers will cover any quality issues, chassis damage, or battery fires, providing lifetime support for both current and new owners, thus reassuring existing customers about switching to NEVs.
- Maintaining Interest: Dongfeng Nissan is offering special discounts on the N7 to boost sales of older models. SAIC Volkswagen is highlighting the ID.ERA 9X in its stores to attract new customers.
Conclusion
Joint-venture brands are just beginning their journey with NEVs and have gained initial traction through customer upgrades. To truly succeed, they need to overcome two major challenges: attracting new customers and maintaining long-term interest in their products. Failing to do so may result in short-lived success.