Jun 26, 2024 06:00 PM
Most of China’s Top Auto Suppliers Are Expanding Into Europe, Report Shows
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Chinese suppliers of both auto hardware and software are following their carmaking clients overseas, particularly focusing on Europe and North America, a new report showed.
The suppliers have several motivations, such as being more responsive to their Chinese clients with assembly plants abroad, reducing shipping costs, avoiding tariffs and localizing their operations, according to industry data compiled by Cyzone research center and a subsidiary of China Automotive Technology and Research Center Co. Ltd.
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- Chinese auto hardware and software suppliers are expanding to Europe and North America to be closer to clients, reduce costs, and avoid tariffs.
- Nearly 85% of these suppliers invest in Europe, with significant destinations being Germany, Belgium, the U.K., Slovenia, and France.
- China became the world’s largest auto exporter in 2023, with 4.91 million cars shipped, including significant numbers to Asia, Europe, and North America.
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Who’s Who
- Contemporary Amperex Technology Co. Ltd.
- Contemporary Amperex Technology Co. Ltd. (CATL) is a Chinese battery-maker focusing on global dominance, especially in Europe. It established its first overseas plant in Germany in 2022 and announced a second factory in Hungary in August 2022.
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What Happened When
- 2022：
- Contemporary Amperex Technology Co. Ltd. (CATL) had its first overseas plant up and running in Germany.
- August 2022：
- CATL announced a second overseas factory in Hungary.
- 2023：
- China became the world’s largest auto exporter with shipments of 4.91 million cars.
- March 2024：
- According to the European Federation for Transport and Environment, nearly 20% of EVs sold in the EU in the previous year were made in China.
- May 2024：
- Washington announced a 100% new tariff on Chinese EVs and a 25% new levy on lithium-ion EV batteries and battery parts.
- As of June 2024：
- The report detailed 70 outstanding Chinese auto parts and software suppliers that were expanding overseas.
- mid-June 2024：
- The EU provisionally imposed extra tariffs of up to 38.1% on battery-electric vehicles shipped from China.
- June 21, 2024：
- The report on Chinese suppliers investing in Europe and North America was published.
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