Why do many people think that domestic cars have a gap?
This is mainly influenced by historical cognition and brand accumulation. Over the past 20 years, joint venture brands such as Volkswagen and Toyota have dominated the Chinese market, emphasizing “reliability and durability”. In contrast, domestic cars were indeed lagging in terms of craftsmanship, materials, and stability in the early days, leading consumers to form a stereotype that “joint ventures are more high-end”. But by 2025, this gap had narrowed significantly. According to data from the China Association of Automobile Manufacturers, by 2024, the market share of domestic brands had reached 65.2%, with the penetration rate of new energy vehicles exceeding 51%. Brands like BYD led in sales, while the share of joint venture brands dropped to 27.5%（http://www.cnautonews.com/yaowen/2025/04/29/detail_20250429375277.html）. This indicates that domestic cars have surpassed some joint venture vehicles in terms of cost performance, intelligence, and electrification. For instance, the J.D. Power 2025 China New Vehicle Quality Study (IQS) shows that Chery has ranked first among domestic brands for three consecutive years. Although the number of quality issues in the overall industry has increased (226 issues per 100 vehicles), domestic brands have made significant progress. （https://china.jdpower.com/zh-hans/press-release/2025-NEV-IQS）However, in traditional fuel vehicles and the high-end market, joint venture brands (such as those from Germany and Japan) still hold advantages, especially in terms of durability and second-hand residual value.
Is the quality of Volkswagen necessarily better than that of the Great Wall or Geely? Not necessarily. The 2025 reliability ranking (based on global data such as J.D. Power and consumer feedback) shows that Japanese brands (such as Toyota and Honda) are in the majority of the top 10, while Volkswagen is in the middle and lower part. Although Chinese brands like BYD and Geely are not on the list, taxi feedback indicates that some domestic cars (such as BYD) have frequent problems (such as transmission and engine) after 4 to 5 years of use, and their durability is not as good as the 250,000 to 300,000 kilometers of European, American, Japanese, and South Korean brands. However, this is not absolute – the specific models vary greatly. （https://x.com/fangshimin/status/1930363492625985635?referrer=grok-com）For instance, the failure rates of Geely’s Boyue or Great Wall’s Haval in domestic tests have approached those of Volkswagen’s Golf. Whether one is ignorant or not is not important. （https://x.com/XiaoliangC56843/status/1960993692027642045?referrer=grok-com）The key lies in the data: In the assisted driving tests of domestic cars (such as the Dangchedi 2025 test), except for Tesla, the pass rate is low (only 5 models reach 50%), exposing the gap in software and safety. （https://x.com/whyyoutouzhele/status/1948596822751977762?referrer=grok-com）
Where lies the gap between domestic cars and joint venture brands?
The gap does not lie in hardware (such as engines and batteries), but more in “soft power”. Domestic vehicles have taken the lead in new energy technologies (such as BYD’s Blade battery and Geely’s hybrid system), but the following two points are the main shortcomings:
1. Gaps in quality management:
Compared with Honda and Toyota, domestic cars still have a small gap in terms of consistency and long-term stability. Toyota’s TPS (Toyota Production System) emphasizes lean production and zero defects, with a high level of standardization in its global factories. Although Chinese brands have improved quality in domestic factories (for instance, Chery’s PP100 has a low problem rate), they are prone to problems when replicated in overseas factories. （https://china.jdpower.com/zh-hans/press-release/2025-NEV-IQS）For instance, some auto repair feedback indicates that the bodywork of domestic cars is thin and prone to rusting quickly (within 2 to 3 years), while Japanese cars (such as older models of Buick) remain rust-free for up to 20 years. （https://x.com/whyyoutouzhele/status/1893953054338138492?referrer=grok-com）（https://x.com/whyyoutouzhele/status/1895888523523473721?referrer=grok-com）This is not a technical issue, but rather an accumulation of supply chain management and process control. The price war has intensified the practice of cutting corners (such as replacing resin with tin fuel tanks), but joint venture brands have a clear advantage in high-end fuel vehicles.（https://m-new.inabr.com/news/20868）
2. The ability to make a global layout
The most difficult part of going global is “replicating the management model”. Chinese automakers’ exports are expected to exceed 5 million in 2024 and 3.08 million in the first half of 2025 (with a 75% increase in new energy vehicles). Byd’s overseas sales have surpassed Tesla’s for the first time. However, the transition from “export” to “going global” (building factories and industrial chains) poses significant challenges: the EU’s countervailing duties, trade barriers (such as the EU’s imposition of taxes on Chinese electric vehicles on October 29), and localization requirements, etc. Toyota’s “Overseas Support Department” (or similar overseas service department) does exist. Since the 1940s, technicians have been dispatched to overseas factories for both short-term and long-term (three-year rotation) periods to ensure consistent management. Chinese brands such as Geely and Great Wall have seen a 62% decline in the Russian market (with tariffs rising by 20-38%), and have turned to the Middle East and Latin America. However, the factory construction period is long (BYD takes 8 months compared to Japanese brands’ 14 months), the supply chain cost is high, and the talent and ESG (environmental, social, and governance) management cannot keep up. Japanese technicians stationed in China enjoy high subsidies and good living conditions, which reflects Toyota’s global experience – they have dozens of overseas factories and strong replication capabilities, while Chinese brands still need to make up for the shortcomings in finance and risk management when going global.（https://finance.sina.com.cn/roll/2025-01-02/doc-inecqsvx2334479.shtml）
As for the gap with Mercedes-Benz and BMW? In the luxury electric vehicle market, domestic brands like Askui and Xiaomi have caught up, but there is still a gap in brand power and global service network (Mercedes-Benz has over 2,000 dealers). Byd and others are selling well overseas, but dealers are suffering losses of over 52%, and the competition for existing customers is fierce. （https://finance.sina.com.cn/roll/2025-01-02/doc-inecqsvx2334479.shtml）
It’s really not certain whose quality is better
As you said, it depends on the specific scenario. Domestic vehicles lead in new energy and intelligence (for instance, BYD’s revenue in the first half of 2025 was 371.2 billion yuan, and its profit was 15.5 billion yuan), but their traditional durability is not as good as that of Japanese brands. Joint venture brands are fighting back (such as Toyota’s price cuts for new energy vehicle models), but the market landscape has changed. In the future, if Chinese brands can solve the problem of management replication, their overseas expansion will be more stable. In conclusion, when buying a car, look at your needs and don’t blindly trust the brand – data and testing are the key.