Chinese car factories on four continents by Asiautos Auto Parts(China Car Aftermarket Parts Expert)

Edited by Asiautos Auto Part

China's auto exports are hot, and building factories overseas has become a trend. In the past few years, news about Chinese auto companies building factories overseas, especially new energy vehicle factories, has constantly touched the market. Corresponding to the hot sales markets, the factories that have been established and the plans to build factories are also focused on the three major regions of Europe, Southeast Asia, and Latin America.

In 2024, BYD's European new energy vehicle factory will be located in Hungary, Chery and Spain's Ebro will establish a joint venture factory that has achieved mass production, and GAC Aion's Thailand factory will start production. In addition, Nezha, SAIC, Great Wall Motors, Leapmotor, etc. have also announced plans to build factories in Thailand, Brazil, Mexico, Europe and other places.

The planning of Chinese auto companies to build their own factories overseas has begun to accelerate, but it has shown differentiated development. In Southeast Asia and Central Asia, the landing speed is relatively fast. However, the layout of factories in Europe and the United States is relatively more cautious.

Despite the difficulties, Chinese auto companies are also taking this step firmly.

01Asia Factory▼

Chinese automakers are building factories in the Asian market, which is a "two-way rush". Chinese automakers' Asian factories are mainly spread across Southeast Asian countries such as Thailand, Malaysia and Indonesia, as well as Central Asian countries such as Uzbekistan. There are two main reasons:

One is that China's new energy vehicles have been increasing in these markets and are in an absolute leading position. In addition, local countries encourage electrification transformation and implement a series of incentive policies to develop the local new energy industry chain.

In a market where new energy vehicles are relatively backward, Pakistan is a favorite destination for Chinese automakers to build factories overseas. MG, Geely, Changan, etc. all have factories in Pakistan, mainly producing oil vehicles.

Looking at the layout of Chinese automakers' factories in Asia, whether they are factories producing oil vehicles or electric vehicles, they are all natural results formed on the basis of a balance between supply and demand.

02European Factory▼

Before the development of new energy vehicles, Chinese cars want to enter the European market with a strong automobile industry, but they basically can't even get a ticket. In the past two years, Chinese car companies have bravely invested in and built factories in Europe. The reason behind this is nothing more than geopolitics.

Due to Western sanctions, the Russian automobile industry has to rely on Chinese car companies. Great Wall and Chery's Russian factories have successfully taken over and made a lot of money.

Geely has taken on two Western relatives, Volvo and LEVC, and shared factories in Sweden, Belgium and the United Kingdom. By the way, it has paved the way for its own sons Zeekr and Lynk & Co to go west. Leapmotor is a lucky faction. With the support of Stellantis, it can directly use Stellantis' existing factories in Europe without carrying heavy assets, and it is relatively light to go to Europe.

BYD will carry out its autonomy to the end, investing heavily in a battery factory in Hungary and a complete vehicle factory.

After Chery hit a wall in Italy, it continued to practice its own overseas rules: as long as it can make money, it doesn't matter its identity. It turned to Spain and its first OEM model, the Ebro S700, has rolled off the production line.

If the EU had not set up tariff barriers against Chinese-made cars, Chinese car companies would at least not invest in and build factories in Europe so quickly. Is it worth it to invest heavily in Europe? It's still unclear now.

03American Factory▼

Is it a "third thought" that Chinese automakers build factories in the American market? Brazil and Mexico are the two major Latin American markets that Chinese automakers focus on. Chery and Great Wall's Brazilian factories have already started production, and BYD's Brazilian factory complex is also progressing smoothly.

However, Mexico often cannot make decisions on the other side. Considering the uncertainty and unknown factors, the Mexican factory construction plans of Chery, BYD and SAIC are still literal.

The United States has always been wary of Chinese new energy vehicles. Not only has it welded its own door shut, but it has also not spared Mexico next door. Even though Mexico recently submitted a special letter of surrender, "It will prove that it is wrong for Chinese products to enter the United States through Mexico", Trump threatened to impose a 25% tariff on Mexican and Canadian goods.

Mexico's hesitation has the biggest victim itself. The fact that Chinese automakers do not build factories in Mexico will not affect the vigorous development of Chinese automakers in Latin America, but Mexico's new energy development cannot be without Chinese automakers.

04Africa Factory▼

Chinese automakers are building factories in the African market, which is a sign of "long-lasting friendship". Africa basically has no decent automobile industry, and the consumer market is mainly dominated by Japanese and European second-hand cars. However, in Egypt, Algeria and Ethiopia, where the automobile industry is relatively mature, Chery and Geely have built KD factories locally, allowing African compatriots to drive new cars.

In terms of new energy vehicle factories, Africa is far behind, unlike Southeast Asia, where a hundred flowers bloom. BYD has plans to build a factory in Morocco.

However, Ethiopia has already issued a policy to completely ban the import of fuel vehicles. A country with 100% electrification demand is now in urgent need of a new energy vehicle factory.

At this stage, building factories in Africa is not the most ideal choice for Chinese automakers. In addition to weak consumer power, the main reason is that Africa's various facilities and industrial chains are too backward to support a mature manufacturing process.

Edited by Asiautos Auto Part

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