China EV Sector Invests More Abroad Than at Home for First Time
Chinese companies in the electric vehicle industry have invested more for the first time in 2024 than abroad, but foreign projects face higher costs, delays and risks.
According to the report of the research company Rhodium Group, which was released on Monday during the supply chain, the company invested in approximately 16 billion dollars of dollars last year – in front of the battery production and $ 15 billion at home. Rhodium said that the figures represented a “historical change önce after directing approximately 80% of the investment for years.
Chinese companies are directed to expand as an excessive capacity and a long -standing price war at home as a long -standing price war throughout the supply chain. They also want to skirt by building production facilities there and focusing on the pressure of foreign customers for more local production.
Rhodium Senior Research Analyst and the author of the report, Armand Meyer, said, ısında overseas investments reflect a saturated Chinese market of domestic investments and the strategic charm of expansion for higher returns abroad ”.
About three quarters of the outgoing investment came from battery manufacturers reflecting the capital intensive nature of the sector. According to the report, Contemporary Amperex Technology Co. Ltd., Envision Group and Gotion High-Tech Co.
Catl, as the world’s largest home battery manufacturer is known, in June, China’s intense competition in the domestic automobile market threatened the health of the industry threatening the overseas expansion of the “1 No.1 priority”, he said. Byd Co., China’s best -selling automobile manufacturer. Chery Automobile Co., a 1 billion dollars of electric vehicle factories in Türkiye promised to establish.
Overseas projects tend to be more expensive, to build and encounter higher regulatory and political risks. In the report, only 25% of home manufacturing projects announced abroad were completed compared to a completion rate of 45% at home.
Last month, BYD put a large facility in Mexico on geopolitical tensions and uncertainty caused by US President Donald Trump’s trade policies.
Domestic projects are not only faster, but also earlier. Rhodium said that battery factories in China usually started construction in three to 12 months compared to 10 to 24 months abroad.
In the report, Svolt Energy Technology Co., a northern China -based battery manufacturer, canceled 99% of the announced overseas investments.
The international expansion of Chinese home companies and suppliers will have to fight dynamics such as unequal global demand for battery cars and return in markets such as EU.
At the same time, Chinese companies should manage Beijing’s increasing concern about technology transfer, business losses and industrial carving, which can lead to firm controls in outgoing investments.
This article was created from an automatic news agency feeding without changing the text.
