With the Americans and Canada taxing 100% of Chinese brands that received state aid under conditions considered illegal by the World Trade Organization (WTO), and with the Europeans joining this strategy, but on a smaller scale, of only up to 35% (due to pressure from German builders), The Chinese automotive industry adopted the possible solution: produce abroad. to avoid punitive tariffs on electric vehicles made in China.
This new strategy is based on Short-term doubling of automobile production capacity abroad.. According to Bloomberg, in 2023 Chinese manufacturers had the capacity to produce 1.2 million vehicles outside their borders, but The goal is to more than double the number of vehicles in the next two years, to reach 2.7 million vehicles in 2026. At the moment, these values represent just a drop of water of the installed production capacity in China, which is around 40 million units, for a Saturated market that currently only consumes around 50% of the total manufactured.which forced local manufacturers to try to export their vehicles.
In Europe, BYD has already started construction of a factory in Hungary and is preparing a second one in Turkey, which will help it supply the European market with some duty-free models. But Italy, Poland and Spain (we are not talking about Portugal) are in the market looking for foreign investment. and there is no shortage of interested parties in installing production lines on European soil, from Xpeng to Geely, passing through Dongfeng.
For markets outside Europe, there are also projects in the pipeline from Chinese manufacturers, with an emphasis on large construction companies that belong to the Chinese state, such as Chagan, Chery, GAC and SAIC. In total, 10 factories are planned.whether new or expanded, covering territories such as Brazil, Indonesia and Thailand, and with specific models for these markets.
Source: Observadora
