The Most Innovative Global Automobile Manufacturers in the Ranking
2005–2025 / 20th Edition
The latest innovation data from global automobile manufacturers indicate signs of trend shifts: While Chinese automakers remain highly innovative, for the first time since 2017 they are no longer able to increase their share of global innovation strength. At the same time, the long-standing downward trend of German manufacturers appears to have come to a halt and is now reversing. This turnaround is primarily driven by the Volkswagen Group, which ranks first as the most innovative automotive group and is awarded the AutomotiveINNOVATIONS Award. For the first time, however, three Chinese manufacturers—BYD, SAIC, and Geely—occupy positions two through four in the overall ranking. These are the key findings of the AutomotiveINNOVATIONS Study, based on 742 innovations in the year 2024/2025, including 575 production-ready innovations from 30 automotive groups comprising over 100 brands.
Shifts in Innovation Strength and Consolidation Trends in the
Chinese Automotive Industry
The automotive industry is undergoing a fundamental transformation in light of profound changes. Since 2018, there has been a disruptive shift in innovation strength toward Chinese automakers, who increased their share from 27% (in 2018) to 47% in 2023. As a result, the market share of Chinese manufacturers in the world’s most important automotive market—China—rose from 35.7% in 2020 to 60.5% in 2024, partly at the expense of German and Japanese manufacturers. However, 2024 marks a renewed trend reversal in the innovation strength of Chinese manufacturers: on the one hand, their share of global innovation strength declined slightly for the first time—albeit at a high level—falling to 46.5% compared to the previous year. On the other hand, signs of consolidation in innovation strength are becoming apparent: five Chinese manufacturers are now among the top 10 most innovative automotive groups, including BYD and SAIC in second and third place, respectively, and Geely in fourth. Looking at the period since 2021, six of the 20 Chinese OEM groups in the sample account for around 75% of the innovation strength. In addition to the top three—BYD, SAIC, and Geely—this includes Nio, GreatWall, and Xpeng (see Figure 1).
Study Director Stefan Bratzel comments:
“The increasing concentration of innovation power among a few automakers is a sign of an impending market shakeout among the many Chinese automobile manufacturers. The high pace of innovation, combined with a ruinous price war and significant overcapacity in China, is something only a few Chinese manufacturers will be able to sustain over time. It is expected that the number of independent Chinese manufacturers will significantly decrease over the next two to three years—partly through mergers.”
Figure 1: Share of Innovation Strength by OEM Country of Origin*
Source: www.automotiveinnovations.de
German automakers push back against the dominance of Chinese OEMs
In the most recent analysis period, German automakers have pushed back against the dominance of Chinese OEMs and, for the first time, were able to increase their share of innovation strength—from 22.8% in the previous year to 24.3%—although there is still a significant gap compared to the pre-COVID era. A key factor in this recovery is the Volkswagen Group, which has regained the top spot among the most innovative companies after ranking sixth last year.
U.S. manufacturers show slight gains, Tesla lags behind
U.S. manufacturers were able to slightly increase their overall innovation strength, mainly driven by significant improvements at General Motors and Ford. Tesla, on the other hand, continues to fall short of expectations and once again fails to reach the level of innovation from earlier years that would place it among the top 10. Tesla currently ranks 15th (previous year: 13), while GM and Ford occupy positions 6 and 12, respectively.
Japanese manufacturers remain weak in innovation
Japanese automakers continue to lag in innovation. After several years of slight improvement, their collective innovation share stands at just 5.1%. Toyota, which ranked 4th last year, drops to 29th with only six innovations. Honda and Nissan take 18th and 22nd place, respectively. The Korean Hyundai Group ranks 10th (previous year: 9th).
Overall decline in number of innovations
The total number of innovations across the sample of 30 automotive groups and over 100 brands has declined compared to 2023 and 2022. However, the figures remain significantly above the levels recorded during the COVID years of 2020/2021 (see Figure 2).
Figure 2: Number of Innovations (Production, Pre-Production, Concept) by OEM Country Comparison
Source: www.automotiveinnovations.de
Note: Excludes Vietnam/VinFast
These are key findings of the AutomotiveINNOVATIONS Report 2025, compiled annually since 2005 by the Center of Automotive Management (CAM). The current results are based on more than 575 individually assessed innovations already available to customers in major global markets, as well as 167 pre-production innovations and concept studies. Since 2011, CAM has honored the most innovative automotive groups, brands, and models with the AutomotiveINNOVATIONS Award in ten categories.
Group Ranking of the Most Innovative Automakers: VW Ahead of BYD and SAIC
The Volkswagen Group, having ranked sixth the previous year, claims the AutomotiveINNOVATIONS Award as the most innovative automotive group in the latest ranking. It achieved this with 109 innovations, including 30 world firsts. With an index score of 205.4 points, the Wolfsburg-based manufacturer clearly leads the ranking—followed by Chinese OEMs BYD (111.7 points), SAIC (69 points), and Geely (62.1 points) (see Figure 3).
Mercedes-Benz ranks fifth—unchanged from the previous year—with 57 points, partly due to the delayed market launch of its innovation flagship, the CLA. BMW, which topped the innovation ranking last year, falls to 19th place in 2025 with only 23.8 points. However, pre-production innovations and concept studies suggest that the upcoming launch of the „Neue Klasse“ in the fall is likely to bring a significant wave of (series) innovations.
Figure 3: Innovation Strength of Global Automotive Manufacturers (Group Level, Top 15)
| Source: CAM (Center of Automotive Management) Note: Trend forecast for the following year: +++ = significantly above average ++ = well above average + = above average o = (at most) average |
Volkswagen impresses with a broad-based innovation performance at a high technological level.
Highlights include world-firsts such as the new motor variant of the ID.3 GTX with a 79 kWh net battery and a range of 604 km (WLTP)—the highest in its segment—an increased charging power of 185 kW (also the highest in its segment), and the exceptionally low fuel consumption of the Golf 8 eHybrid, at 0.9–0.3 L/100 km. In the area of infotainment and connectivity, VW also sets benchmarks—for example, with an over-the-air update for the ID.3 that, for the first time, allows an increase in motor output from 150 to 170 kW after purchase, significantly improving acceleration.
Chinese OEMs lead in BEV, ADAS, and Interface technologies
Chinese manufacturers BYD, SAIC, Geely, and Nio impress with particularly strong innovation performance in electric mobility (BEV), advanced driver assistance systems (ADAS), and interfaces. In these areas, 28 of the 70 world-first production innovations can be attributed to Chinese OEMs. In the BEV segment, Nio, LiAuto, and BYD set new standards—for example, segment records for charging power and range, such as the LiAuto Mega in the van segment and Nio with the introduction of a semi-solid-state battery.
Chinese manufacturers also lead in automated driving features: BYD, GAC, Nio, SAIC, and LiAuto are offering Level 2+ systems not only for highway and traffic jam situations, but increasingly also in urban environments.
In the plug-in hybrid segment, Chinese OEMs dominate with 20 production innovations out of a total of 48 innovations in this technology field in 2024. Highlights include the Great Wall Wey Lanshan, with the longest purely electric range in its segment, and the Tank 500, which has the highest charging power—both within its segment and across all segments. In the utility segment, BYD’s new pickup truck, the BYD Shark, sets new benchmarks with multiple world-first innovations.
Volkswagen Group leads Germany’s innovation recovery
From the German perspective, the most notable development is the significant innovation growth of the Volkswagen Group. With an increase of 85.9 index points, VW reaches 205.4 points—a 139% rise compared to the previous year.
„Volkswagen’s strong performance this year reflects a significant rise in innovation output across BEV, PHEV, and interface technologies,“ explains study director Prof. Dr. Stefan Bratzel. „At the same time, it’s clear that Chinese manufacturers continue to gain momentum and are increasingly pushing into the Top 10—a trend that has been building for several years.“
Stefan Bratzel: A Darwinian shakeout is underway
“The global automotive industry is in the midst of a Darwinian process of displacement, in which leading Chinese automakers are playing a key role,” says Bratzel. “The innovation dynamics across countries indicate that German manufacturers are prepared to take on the challenge from new competitors. However, the positive signals should not obscure the fact that much greater efforts will be required over the next 3–5 years to successfully manage the transformation.”
Scientific foundation of the AutomotiveINNOVATIONS Awards
The AutomotiveINNOVATIONS Awards are based on the annually updated AutomotiveINNOVATIONS Report, using data from the innovation database of the Center of Automotive Management (CAM).
Since 2005, under the leadership of Prof. Dr. Stefan Bratzel, CAM has tracked and evaluated the product innovations of global automotive manufacturers using both quantitative and qualitative criteria. For 2024/25, CAM analyzed innovations from 30 global manufacturers and newcomers, covering around 100 automotive brands. A total of 575 series-available OEM innovations were evaluated across the technology fields of Electric Drive, Autonomous Driving & ADAS, and Infotainment & Connectivity. Among these are nearly 130 highly rated world-firsts.
The scientific evaluation considers criteria such as maturity level, originality, customer benefit, and degree of innovation. Additionally, around 170 pre-production innovations and concept studies were included to indicate the future direction of manufacturers.
Audi leads among premium brands
In the 2010s, Audi competed closely with Mercedes and BMW for the crown of the most innovative premium carmaker. However, since 2020, the Ingolstadt-based company delivered only modest innovation output. In the current year, Audi makes a comeback, topping the premium brand ranking for the first time in 8 years—beating both Mercedes and Chinese competitor Nio (see Figure 4).
„Audi is currently clearly focused on interface technologies, BEV, and connectivity. 85% of its innovation strength is concentrated in these areas,“ explains CAM Director Prof. Dr. Stefan Bratzel.
„At the same time, it’s evident how strategically Chinese brands are building competitive pressure in the premium segment as well. Among the ten most innovative premium brands, five are from China—Nio, IM, Avatr, Yangwang, and Zeekr—and three of them occupy positions in the Top 5,“ Bratzel adds.
Figure 4: Innovation Strength of Premium Brands (Top 10)
| Source: CAM (Center of Automotive Management) Note: Trend forecast for the following year: +++ = significantly above average ++ = well above average + = above average o = (at most) average |
VW Named Most Innovative Volume Brand
Among volume manufacturers, the Volkswagen brand takes the lead—followed by Chinese brands BYD and LiAuto in second and third place.
„A key success factor for Volkswagen lies in its ability to quickly and broadly implement innovative technologies in the volume segment—setting benchmarks in a highly competitive environment,“ summarizes CAM Director Prof. Dr. Stefan Bratzel.
LiAuto Mega Named Most Innovative Model
For the first time, a Chinese brand—LiAuto—wins the prestigious category of the most innovative model, ending Mercedes‘ three-year streak.
„The LiAuto Mega, with its 13 innovations, significantly contributed to the brand’s strong performance. More than half of LiAuto’s total innovation index points are currently attributed to this model series,“ explains Bratzel. The Mega’s position as a particularly comfort-oriented vehicle is underlined by numerous interior and well-being innovations, as well as world-firsts in charging performance and range in the van segment.
Top 3 Most Innovative Models
- 1st Place: LiAuto Mega
- 2nd Place: Kia EV3 – a compact SUV featuring nine innovations, especially world-firsts in range and V2X technologies
- 3rd Place: Audi Q6 e-tron – the brand’s new electric SUV
More Innovation Insights Available
For a comprehensive overview of automotive innovations, the CAM provides a dedicated online portal with extensive background information and a free trial access to the AutomotiveINNOVATIONS Dashboard – a visual interface of the CAM’s innovation database:
🔗 https://automotiveinnovations.de/