Chinese carmakers are pumping millions into production facilities abroad with a view to double their production capacity to over 2.7 million vehicles by 2026.
The aim is to circumvent looming import tariffs and address the burgeoning demand for electric vehicles (EVs).
According to a recent report by Bloomberg, these firms aim to more than double their annual production capabilities outside China from 1.2 million vehicles in 2023 to over 2.7 million by 2026.
The move comes as the United States, the European Union, and Turkey prepare to impose tariffs on Chinese-made vehicles, compelling Chinese car manufacturers to consider alternative strategies.
The domestic electric vehicle market in China is nearing saturation, with mounting competition and surplus production capacity.
Leading the charge are companies such as BYD, Chery, Changan, GAC, and SAIC, all of whom have announced new or expanded projects at overseas plants.
Primary regions of focus include Southeast Asia and South America, with significant efforts concentrated in Thailand, Indonesia, and Brazil. BYD and Geely-owned Volvo are spearheading the expansion into Europe, with BYD undertaking projects in Hungary and announcing another facility for Turkey.
This strategic location provides access to the European Union market, which is of particular interest due to the region’s substantial EV market potential. Meanwhile, countries like Spain, Italy, and Poland are also keen on attracting investments, with companies like Geely, Dongfeng, and Xpeng exploring options for future European plant locations.
Source: Noah Wire Services