A new report reveals a shifting landscape in electric vehicle innovation, with Chinese and European automakers now leading the charge. the Center of Automotive Management’s “Electromobility Report 2026” details significant gains for companies like Geely – which recently surpassed Volkswagen and BYD to claim the top spot – while established industry leaders in the U.S. and Japan are falling behind in key areas like battery technology and charging performance. this analysis, tracking innovation across 36 automakers, underscores the rapidly evolving nature of the EV market and its impact on global competition.
The Chinese automaker Geely is leaving the competition in the dust.Image: keystone
Chinese and European automakers are driving innovation in the electric vehicle sector. Geely, in particular, has significantly improved its position in innovation rankings, while one well-known manufacturer has fallen sharply. Japanese automakers lag behind.
January 22, 2026, 10:22January 22, 2026, 11:26
The most innovative electric vehicle manufacturers, according to a recent analysis by the Center of Automotive Management (CAM), are based in China and Europe. Chinese and German manufacturers – including Geely, the Volkswagen Group, BYD, SAIC, and BMW – lead the rankings. In contrast, U.S. companies Tesla and General Motors (GM) have declined in the electric vehicle innovation comparison. Japanese automakers have remained relatively weak in innovation within the electric mobility space in recent years.
These are the key findings of the «Electromobility Report 2026», which has analyzed the innovation strength of 36 automakers for the past decade. The assessment primarily focuses on recent advancements in range, energy efficiency, and charging performance, as well as parameters like battery technology and software integration. The report’s findings come as the global automotive industry undergoes a rapid transition toward electric vehicles, impacting investment strategies and market share.
The Results at a Glance
Manufacturers from China and Germany are innovative in electromobility. Japanese auto manufacturers are falling behind.Image: Center of Automotive Management
The Winners
From 2021 to 2025, the Chinese Geely Group, which includes brands like Volvo and Polestar, was particularly innovative. Researchers highlighted new battery systems and efficiency improvements that led to strong growth in the company’s electric vehicle sales in 2025. Geely climbed five places in the innovation ranking to first, surpassing the Volkswagen Group and China’s world-leading EV manufacturer, BYD.
The study also recognized BYD’s innovation in developing its own LFP batteries, fast-charging systems with a maximum charging capacity of 1000 kW, and new electric models featuring a 1000-volt architecture. The Volkswagen Group has successfully expanded electric mobility across a wide range of vehicles across various brands.
BMW made the biggest leap forward, rising to fifth place. The German automaker moved up eight positions. From 2016 to 2020, BMW ranked 13th among the most innovative electric vehicle manufacturers. Rival Mercedes-Benz improved by four positions to sixth place. Both premium manufacturers recently launched advanced technology platforms for electric cars that are considered competitive internationally.
The Losers
The biggest decliner is Tesla: The U.S. automaker ranked first among the most innovative automakers from 2016 to 2020. In the period from 2021 to 2025, it only reached eighth place, behind Hyundai and just ahead of Renault. Researchers wrote that Tesla’s innovation performance has “more than halved” between 2016 and 2025. However, eighth place doesn’t mean Tesla models are no longer competitive; it means several rivals have made faster progress in recent years, while 28 manufacturers were less innovative. General Motors is another example. The U.S. auto giant fell from fifth to tenth place, while Renault improved by two positions to ninth.
According to the study, Japanese manufacturers such as Nissan, Honda, and Mazda “predominantly rank in the lower third of the electric innovation ranking.” Toyota has recently improved, but remains in the middle of the pack at position 18 out of 36 manufacturers.
The Bottom Line
Researchers conclude that electric mobility is increasingly shaped by Chinese and German manufacturers. The Chinese are setting the tone, but German manufacturers are “increasingly establishing themselves as the second strongest force.” The innovation strength of U.S. automakers has suffered.
“The models of German automakers now possess a high degree of innovation in the field of electric mobility and can compete technologically with the equally innovative Chinese automakers.”
Stefan Bratzel, Center of Automotive Management
A high degree of innovation has a positive impact on sales. Innovation leader Geely sold over 60 percent more electric cars in 2025 than in the previous year, while the Volkswagen Group and BYD each increased sales by around 30 percent. In contrast, Tesla’s deliveries decreased by just under 10 percent.
Geely is now the third-largest electric vehicle manufacturer, ahead of the Volkswagen Group, and could overtake Tesla this year.
(oli)
