Foreign automakers, long dominant in China’s car market, are now facing a severe downturn as domestic electric vehicle (EV) makers like BYD and Xpeng rapidly gain market share. This shift is forcing global giants like Volkswagen, Ford, and General Motors to reconsider their strategies, with declining sales and market share leading to plant closures and restructuring efforts. The EV boom, catalyzed by Tesla’s local production in Shanghai, has reshaped consumer preferences, particularly among younger generations, favoring Chinese brands. As China’s EV industry grows both domestically and internationally, foreign automakers struggle to compete, leading to significant market disruptions and the rise of China as the new global automotive hub.