"Traditionally, we have a very strong relationship between China and Germany when it comes to the automotive industry," Hildegard Müller, president of the German Association of the Automotive Industry, told Science and Technology Daily in an interview during the recent 2026 Beijing International Automotive Exhibition (hereinafter referred to as Beijing Auto Show).

This was not Müller's first auto show in China. In the past two years, she came to China several times to attend multiple major events like the Beijing Auto Show, Auto Shanghai, and the World New Energy Vehicle Congress in Hainan province in south China.

At these events, she could see "how working together—how cooperation—leads to success, how strengths can be developed together, how we can improve together, how we can meet customer needs, and how an economy can also develop together."

She said that is why the exchange between German and Chinese original equipment manufacturers and suppliers at the Beijing Auto Show was so important. "Because it strengthens products and benefits consumers."

Just days before the Beijing Auto Show started, the German Chamber of Commerce in China published an excerpt from its upcoming Innovation Report 2026, detailing three results of the automotive industry section.

These were based on a survey between March 16 and April 10, 2026, in which 257 member companies of the German Chamber participated, including 42 from the automotive industry.

According to the report, over the past two years, the share of German companies from the automotive industry in China with R&D activities in China that serve both the Chinese and global markets nearly tripled, rising from 12 percent to 33 percent.

Of these companies, 81 percent said localizing their R&D in China has accelerated their development speed compared with Germany; 79 percent also said localized R&D in China has lowered their R&D costs versus costs in Germany.

Müller said German auto makers like BMW, Mercedes-Benz and Volkswagen have certain components that are used globally, as well as other components that are tailored specifically for their customers. "You can truly understand customers and markets only if you're on the ground."

That is why investment and development are carried out here in China—not simply because production might be cheaper or for other factors, but because it allows the companies to respond very specifically to customer needs, Müller said.

For many years, the Chinese and German automotive industries have conducted various forms of cooperation, including corporate partnerships and joint ventures, which provide a solid foundation for developing these initiatives together.

"It is therefore very important to build on these strengths collectively. And to do so, we also need policies and a political framework that continue to make this possible," Müller said.

The industry, and particularly the automotive industry, views with concern the increasing protectionism, isolationism and unilateral measures. This makes life difficult for the industry in all countries, because the opportunities offered by an intelligent supply chain are not being fully utilized. Therefore, both sides are called upon to reach out to each other, Müller said.

The German automotive industry is investing heavily in China, aiming to respond very specifically to the needs of Chinese consumers. In doing so, it is also driving economic growth and creating jobs in China, Müller said.

"We also invite the Chinese automotive industry to come to Germany or Europe, including establishing production bases, and to become part of the production network in the same way that the German automotive industry is currently doing in China," she said.