The Rise Of Chinese Car Manufacturers In Europe And Beyond
- Written by : Ashton G. Curran
- Date Published : 2023-04-13
- Date Updated : 2023-04-13
- Category / Tag : articles
As the internal market becomes increasingly competitive, these brands must look elsewhere if they want to grow.
After a few tentative attempts, many Chinese manufacturers are already selling or preparing to sell in Europe, including BYD, NIO, Xpeng, Chery, Ora, and Wei, hoping to transform themselves from an "exotic choice" to a "credible alternative".
To expand their reach, Chinese manufacturers have begun building factories abroad.
BYD recently opened a factory in Thailand that will eventually produce 150,000 cars per year, and Hozon NEV is a startup whose production in the Asian country will begin in 2024.
Changan plans to build a factory in Southeast Asia, while GAC Motor has set its sights on India for its first plant outside of China.
The objectives of these moves are twofold: to increase vehicle production and to have the ability to export them more quickly to various parts of the world.
Some Chinese manufacturers have gone even further, creating their own fleet of ships dedicated specifically to exports.
SAIC was the first to do this, and its MG brand is achieving impressive results around the world.
Chery and BYD are also following suit.
This focus on global growth has boosted China's auto exports by 54%, and since 2022, China has overtaken Germany to become the second-largest country in the world for car exports after Japan.
It remains to be seen how much more Chinese car manufacturers will grow abroad, as some may return to focusing on the internal market while others, with the right products, technology, and distribution networks, will be able to establish themselves.