This study examines the effect of strategic fit on the performance of Sino-foreign joint ventures (SFJVs) in China’s automobile industry. Drawing on strategic alignment theory, strategic fit is defined as the alignment of partners in strategic objectives, operational coordination, and resource complementarity. Data were collected from senior executives in multiple SFJVs and analyzed using covariance-based structural equation modeling (CB-SEM). Results show a significant positive relationship between strategic fit and joint venture performance, indicating that alignment at the strategic level enhances efficiency, competitiveness, and sustainability. The findings contribute to the literature on international joint ventures by providing empirical evidence from China’s automotive sector. Practically, the study suggests that multinational firms and local partners should prioritize aligning strategic goals, establishing coordination mechanisms, and leveraging complementary resources to maximize performance in a dynamic, policy-driven market.