In a dimly lit car factory in northeastern China, hundreds of robots are tirelessly assembling electric vehicles (EVs) around the clock. This futuristic “dark factory” is a shining example of how automation and technology are transforming the auto industry, positioning China as a formidable contender on the global stage. Gone are the days when cheap labor was the primary reason for China’s manufacturing supremacy. Rising labor costs have prompted factory owners to pivot towards automation, resulting in sweeping changes in car production.

Enter Zika, a luxury EV maker that emerged in 2021 and now boasts a production capacity that rivals even industry giants like Tesla. With the ability to produce over 300,000 cars annually, or more than 800 cars every day, Zika is racing ahead, fueled by hyperautomation and cutting-edge robotics. While human workers still play a role in tasks like robot maintenance and precision assembly, the company’s sights are firmly set on increasing efficiency to deliver vehicles faster to eager customers. This venture into automation is not just a Zika phenomenon; it’s a trend sweeping across the nation.

Thanks to the “Made in China 2025” initiative launched by President Xi Jinping, China’s use of robots in manufacturing has increased sevenfold since 2015. This ambitious program aims to reduce reliance on foreign inputs while simultaneously escalating China’s technological prowess. As the country races to establish itself as a leader in the EV market, the numbers reflect its progress — China was home to half of the world’s newly installed industrial robots in 2023. This surge in robotics means that Chinese automakers like Zika are on a collision course with the global market.

However, this rapid automation raises concerns among American automakers. With China’s EV production capacity expanding at lightning speed — largely thanks to state loans and subsidies — Western manufacturers find themselves struggling to compete. Companies like Ford and General Motors have recently scaled back their EV expansion plans, hindered by high battery costs and slow infrastructure development. The lack of labor unions in China also means fewer regulations and smoother transitions to automation, putting Western companies at a disadvantage.

In a world where the demand for EVs is escalating, the competition is getting fiercer, especially in the crowded Chinese market. Although Western countries remain wary of China’s automotive expansion — worried that a deluge of affordable Chinese vehicles could hurt their own industries — many of these cars are sold domestically. Therefore, while Zika and its cohorts are thriving, the potential for overcapacity looms large as they strive to meet local demand. Despite these challenges, Zika remains confident in China’s ability to consume, forging ahead in a landscape that is quickly becoming known as the new frontier of automotive innovation.