China car industry goes off-shore

The only thing stopping Chinese car companies taking over the market is tariffs and the China car companies are implementing a response – local manufacturing in their target markets.

Last year it was calculated by Rhodium Group, that Chinese carmakers had foreign plants capable of producing around 1.7 million vehicles a year and had  plans to double that.

China car industry goes off-shoreBYD, the biggest of them, is building a $1 billion factory in Turkey to come on-stream next year which should give it tariff-free access to Turkish and EU markets, reports the Nikkei. It already  has production facilities  in Thailand and Uzbekistan, is adding plants in Hungary, Indonesia and Brazil and planning to move into Mexico and India. Last week it started constructing  an assembly plant in Cambodia with production targeted for this year.

 Geely has assembly facilities in Malaysia, Korea, Vietnam and Giza, Egypt.



SAIC has plants in Pakistan, Thailand, Indonesia, and India  and regional hubs in Egypt, Morocco and South Africa and is looking for a site in Europe.

Chery Auto opened a jv plant in Barcelona in December, assembles cars in Russia and  plans to set up production in Thailand, Vietnam and Malaysia

Changan is building a  factory in Thailand and aiming to expand into Asia and Europe.

Great Wall Motor has a factory in Thailand

Dongfeng is negotiating with Italy for a factory to expand EV exports in Europe.

FAW is producing vehicles in Egypt.

See also: The China Gambit

David Manners

David Manners

David Manners has more than forty-years experience writing about the electronics industry, its major trends and leading players. As well as writing business, components and research news, he is the author of the site's most popular blog, Mannerisms. This features series of posts such as Fables, Markets, Shenanigans, and Memory Lanes, across a wide range of topics.

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