Vehicle Model Planning Research: Chinese OEMs Launch Sub-Brands Intensively, While Multinational OEMs Apply the Brakes to Electrification Strategies

ResearchInChina released the OEMs’ Passenger Car Model Planning Research Report, 2026, outlining the vehicle model plans and features of Chinese independent brands, emerging brands, and joint venture brands over the next five years. 

I. New Vehicle Launch Plans of OEMs, 2026-2030

In 2026, major OEMs in the Chinese automotive market will launch no fewer than 200 new models (including brand new and facelift vehicle models). Around 90% of them are new energy vehicles or offered with new energy powertrain options.

II. Product Portfolio Updates of Major OEMs

During 2025-2026, several OEMs launched new automotive sub-brands to enrich their product portfolios. For example, BYD launched a new sub-brand, "Linghui," targeting the business market. By segmenting the business and consumer markets, BYD aims to remove the label of "BYD (Dynasty/Ocean) = vehicles for online ride-hailing services", clearing obstacles for the upward brand upgrading of its main brands. Great Wall Motor launched "Zixin Qiche (Confidence Auto)", an ultra-luxury sub-brand under the Ultra-Luxury Vehicle Business Group. Focusing on high-end categories such as supercars and D+ class sedans, it aims to create "the ceiling product of the automotive industry." Xiaomi Auto will adopt a dual-product-line strategy of "BEV-oriented main brand + REEV-oriented sub-brand", launching the "SKYNOMAD" brand in the second half of 2026, targeting the range-extended SUV market and competing with popular range-extended vehicle models such as Li Auto’s L series.     

Under the Harmony Intelligent Mobility Alliance (HIMA), "five brands" (i.e. SAIC (Shangjie), STELATO, AITO, LUXEED, Maextro) adopt the mode of Huawei Smart Selection, led by Huawei Device BG, which controls product definition, styling design, vehicle research and development, and marketing/sales leadership, while OEMs are responsible for vehicle production and manufacturing, supply chain management, and after-sales service.

"Three brands" (i.e. AISTALAND, EPICLAND, Huajing) of Qiankun Ecosystem adopt the HI Plus mode. Under this mode, OEMs retain brand ownership, product definition rights, and sales channel dominance, while Huawei provides full-stack technology empowerment and full-process R&D and marketing collaborative support.

In April 2026, AFARI joined forces with BAIC Group to create the brand Pallade. The brand has three major product series, with a total of five new car products. In joint empowerment, the cooperation mode between AFARI and BAIC is similar to Huawei's HI mode. Based on the open cooperation, AFARI offers L4 autonomous driving technology, full-stack AI cockpit, and super agent technology; BAIC is responsible for vehicle R&D/production and supply chain integration.

It is reported that AFARI and BAIC plan to found a joint venture in the future. Taking advantage of this cooperation opportunity, AFARI will gradually strip away the constraints of Geely, transform into an independent third-party intelligent solution provider, expand cooperation with OEMs across the industry, and forge a competitive route with Huawei. BAIC will rely on this cooperation to strengthen its intelligent independent R&D capabilities, build a diversified technology supply system, and reduce its sole dependence on external technology companies such as Huawei. 

III. Many multinational OEMs have slowed down the pace of BEV strategies and adjusted product planning.

Limited by factors such as the slower-than-expected growth of the electric vehicle  market, losses in the BEV business, bottlenecks in the implementation of key power battery technologies, lagging global charging infrastructure, the decline of new energy subsidies in Europe and the United States, and the loosening of combustion ban policies, overseas multinational OEMs such as Audi, Mercedes-Benz and Honda have begun to slow down the pace of BEV strategies, announcing that they will cancel/postpone the "comprehensive electrification/fuel vehicle phase-out" schedule and shift to a multi-line parallel development strategy consisting of fuel, hybrid (plug-in hybrid/extended range), and battery-electric vehicles. Global vehicle electrification has entered a stage of pragmatic and rational adjustment.   

Case 1: Honda’s 2025 financial report shows that Honda suffered its first annual loss in nearly 70 years since its listing, with a net loss of JPY423.9 billion. The core reason for the loss is the impact of the adjustment of the electrification strategy. On May 14, 2026, Honda President Toshihiro Sanbe officially announced at a business strategy briefing that the company would abandon the established goal of "completely discontinuing the sale of vehicle models with internal combustion engines in 2040" and plan to launch no less than 15 vehicle models equipped with new hybrid systems before March 2030.

Case 2: Mercedes-Benz announced in 2025 that it would adjust its electrification goal from "comprehensive electrification in 2030", to "new energy vehicle models (including hybrids) accounting for up to 50% in 2030". According to its latest product plan, Mercedes-Benz will launch more than 40 products from 2025 to 2027 (7 of which will be China-exclusive vehicle models), including both fuel and battery-electric vehicle models.

Case 3: In June 2025, Audi announced that it would withdraw its original plan of stopping developing and selling vehicles with internal combustion engines in 2033, and no longer set a clear timetable for termination.

While slowing down the pace of BEV strategies, many multinational OEMs are also intensively choosing to cooperate with local Chinese companies to promote the localization of the supply chain, especially in the fields of intelligence and electrification.

In the field of intelligent driving: Momenta has become an important partner of many multinational OEMs in China. For example, Toyota's "with China, for China" action guide mentions that the intelligent driving system developed with Momenta takes "zero casualties in traffic accidents" as its ultimate goal. Honda and Momenta have formed an in-depth strategic partnership to jointly develop mass-production intelligent driving solutions based on end-to-end foundation models. BMW and Momenta have inked an agreement to jointly create a China-exclusive intelligent driving solution based on flywheel foundation models, which will be installed on multiple vehicle models of Vision Neue Klasse made in China.       

In the field of intelligent cockpits: For example, Toyota promotes the introduction of HarmonySpace into cars. The GAC Toyota bZ7, launched in 2026, is already equipped with a full version of HarmonySpace 5.0. Dongfeng Nissan has also signed a strategic cooperation agreement with Huawei to launch the first fuel vehicle fitted with HarmonySpace - Teana HarmonySpace in November 2025. In addition to the digital key, HiCar Smart Connection, and My BMW App developed based on HarmonyOS NEXT, BMW has cooperated with Alibaba Tongyi to develop a customized AI engine.  

In the field of electrification: For example, Volkswagen Group China and CATL signed a strategic cooperation memorandum in February 2025 to comprehensively deepen their cooperation in the fields of new energy vehicle lithium-ion battery research and development, new materials application and parts development. Volkswagen and XPeng expanded their cooperation in August 2025 to make their co-developed EEA spread to fuel and plug-in hybrid vehicle model platforms.