Mapping out China’s EV factories overseas investments in Europe

China-made EVs are in great demand in different markets, Chinese EV carmakers started to gain visibility on the world stage by opening China’s EV overseas factories, to speed-up global green transition in Europe, North America, Asia, the Middle East and Africa.

To better map out China’s EV factories overseas investments in Europe, it’s necessary to chase Chinese EV makers overseas factories footprints in Europe. Today, China overseas EV plants and investments expanding, it is a practical strategy to overcome market challenges, continuing to accelerate global green transition. Look at this recent article from asiafinancial

BYD is building it first plant in Hungary, while Leapmotor will use a Stellantis factory in Poland, as Chery eyes production in Spain and possibly Italy; Great Wall, SAIC and Dongfeng are also assessing opportunities.

Manufacturing costs for Chinese EV makers including BYD, Chery Automobile and state-owned SAIC Motor are much lower at home but they are nonetheless keen to set up in Europe to build their brands and save on shipping and potential tariffs, Gianluca Di Loreto, a partner at consultancy firm Bain & Company, said.

“Chinese automakers know their cars must be perceived as European if they want to bear interest among European customers,” he said. “This means producing in Europe.”

So, while import taxes may help European automakers better compete with their Chinese counterparts, they may also spur Chinese automakers – which are already investing heavily, and for the long-term – in Europe.

EV, battery plants in Hungary Poland, Hungary, which produced around 500,000 vehicles in 2023, secured first European-factory investment by a Chinese EV automaker, announced last year by EV giant BYD, which is also considering a second European plant in 2025.

Hungary has spent more than $1 billion in recent years to support new battery plants of South Korean groups SK On and Samsung SDI and Chinese battery giant CATL’s planned factory.

China’s Leapmotor will use existing capacity of Franco-Italian partner Stellantis with Reuters reporting the pair have chosen the Tychy plant in Poland as a manufacturing base.

Poland has a number of programmes currently supporting more than $10 billion of investments, country’s development and technology ministry said, including one favouring the transition to a net-zero economy and another offering corporate income tax relief, of as much as 50% in high-unemployment regions.

Spain, Italy, Germany are chasing EV factories. Spain, Europe’s second largest car-making country after Germany, has secured investment from Chery, which will start production in the fourth quarter at a former Nissan facility in Barcelona with a local partner.

Chery is expected to benefit from Spain’s 3.7 billion-euro programme launched in 2020 to attract electric-vehicle and battery plants.

China’s Envision Group has already received 300 million euros in incentives under the scheme for a 2.5 billion battery plant creating 3,000 jobs. Spain might also host Stellantis’ planned fourth gigafactory in Europe, with CATL.

Chery plans a second, larger facility in Europe, a source with knowledge of the company’s plans revealed, and has held talks with governments including Rome, which is keen to attract a second automaker to rival Fiat-maker Stellantis.

Italy can tap its national automotive fund, worth 6 billion euros between 2025-2030, for incentives for both car buyers and manufacturers. China’s Dongfeng is among several other automakers that have held investment discussions with Rome......See more from asiafianncial here.

At this moment, it is reported that Korean, Chinese Firms in Talks on EV Batteries for Europe. LG Energy Solution said they were discussing possible tie-ups with three Chinese suppliers, with battery plants in either Morocco, Finland or Indonesia.

All in all, it is fascinating to map out that Chinese carmakers overseas investments expanding, the new development of China investments in Europe with setting up Chinese oversea EV factories. While also interesting, most news about Chinese cars in Europe focus on the electric vehicles. 

Nevertheless, facing different markets challenges, looking forward to further promoting global green transition. China carmakers move on with overseas EV factories investments, overcome various local challenges, meet different markets demand, just this week, a new Chinese EV plant opened in Asia, GAC Aion opened its first overseas factory in Thailand.  

Obviously, Chinese carmakers are making bigger pushes to set up more EV factories investments in major European countries which the low prices of Chinese EV models have already started to gain favor among consumers in Europe.

After all, it's a proactive action to promote global green transition, together to slow down climate changing. In fact, it is good to see that Chinese investors with new turn - setting up it's overseas EV factories in Europe, and simultaneously, benefit all, make the climate healthier together. 

Interesting, Just at this moment, a source revealed that  China’s Dongfeng Motor Group in a good position building an car manufacturing facility in Italy after talks with the Italian government. The potential deal could also involve other key investors, including Italian companies from the components sector, moreover, Italy has been in talks also with other major automakers, including China’s Chery Auto about potential investments in the country.

Meanwhile, the business status of Chinese automotive companies is raising progressively among glagol others in 2024. Recent report from Fortune 500 indicated that ...Chinese automotive companies continue to possess the presence on the Fortune magazine’s annual list of 500 top global businesses, with ten of them listed despite the country’s overall economy having been dragged down by slowing consumer demand.

Among others, China electric vehicle giant BYD rose 69 spots on the 2024 Fortune 500, recording the biggest jump by a Chinese automaker, to rank 143th largest corporation worldwide by revenue. Rival Geely saw its ranking rocket to 185 this year – a 40 spot rise from last year. The Volvo parent is also one of the only two privately owned Chinese automakers on the list this year. 

There are also a bunch of very hopeful same kind of automakers from China listed among others in top ranking Fortune 500.  Suh as: State-owned SAIC was the highest ranked Chinese automaker, although the partner of Volkswagen and General Motors fell 9 spots to 93rd place this year. Peers FAW (129th), GAC (181st), BAIC (192nd), Dongfeng Motor (240th), and China South Industries Group (343rd), parent of Changan Automobile, kept their places on the list. 

In addition, China Anhui-based Chery Holding Group, China’s biggest exporter of passenger vehicles by volume last year, entered for the first time at 385. It is also the second year CATL made it onto the list, a rise of 42 spots to 250th place for the EV battery maker, the only Chinese auto parts supplier ranked. 

In total, there were 133 Chinese companies on ranking fortune 500 in 2024, importantly,  Chinese automakers are making significant presences, although less in number than last year’s 142, but noteworthy advance in ranking in 2024 on the Fortune 500 top global businesses in 2024.  

Today, China's EV manufacturers started to gain visibility on the world stage, now, it is just the beginning, remember, China is famous with Long March....This time it is Marching on EV wheels, all is Smart !