China’s electric car industry invests more overseas than at home

Beijing – Chinese electric car companies, Tesla and other global automobile manufacturers increase competition as they increase their investments in overseas factories.

According to the Rhodium Group report of a US -based consulting firm published on Monday, the Chinese electric car supply chain has invested more than the country until 2014.

The report stated that the released overseas investments or 74%of them are in battery factories. However, the investment in the assembly facilities abroad “rapidly” said.

Chinese automobile manufacturers come to spending plans as they encounter higher tariffs in intensive competition and export at home. Increasing investments abroad can help Chinese enterprises gain support for foreign governments for market expansion.

“Growing in host markets such as the EU increases the obstacles to the entrance and will push more Chinese companies to establish local production operations,” the Rhodium report said. He said.

According to Rhodium data, domestic investments of the Chinese electric automobile industry in production increased in 2024 in 2023 from $ 41 billion to $ 15 billion.

Although the investment abroad remained much lower, for the first time in 2024, domestic levels “overcome narrowly”, without sharing a definite figure in the report.

According to a separate Rhodium survey published in late July, Automotive was the most active sector of China’s investment in the second quarter this year. The sector of materials and metals was first listed.

“We have achieved higher activities by homepieces manufacturers than normal, eight transactions exceeded $ 100 million.” He said. “The biggest thing between them was directed by Gem, a Chinese battery manufacturer who committed 293 million dollars to expand the triple pioneer facility in Indonesia.”

A few overseas factory projects announced in recent years have started operations.

Large wall engine Announced on the weekend, The first factory in Brazil Local time on Friday. The company is also It has been reported, thinking about another factory in the region And he would decide the middle of next year. The Chinese car manufacturer did not respond immediately to a CNBC comment request.

Byd It also started production in the first Brazil factory in Julyon the contrary get a fine of At the beginning of the year, through labor applications. The Chinese electric car giant sold more than 545,000 cars abroad as of July this year and exceeded more than 417,000 vehicles for all 2024, according to the CNBC calculations of the public data.

At the beginning of this summer, Chinese battery supplier Envision officially announced in June He started production in his first factory in France.

However, investments abroad consist of completed projects.

The Chinese electric car industry has only been completed, only 25% of all the international production plans announced, and 45% for those who are home, Rhodium said in a report on Monday, that the possibility of cancellation of projects outside the country is twice as much.

“Chinese companies will also have to manage Increased concern about Beijing’s technology leakageBusiness losses and industrial carving will be able to cause tight controls in investments in strategic sectors. ”

Victoria Yeo from CNBC contributed to this report.