China’s EV Industry’s Overseas Factory Investments Surpass Domestic For 1st Time

China's electric vehicle (EV) industry has seen a significant shift, with investments in overseas factories surpassing those in domestic ones for the first time. According to CNBC News, Chinese EV companies are increasing their investments in overseas factories to compete with global automakers like Tesla.

A report by consulting firm Rhodium Group revealed that 74% of the Chinese electric car supply chain investments were made outside the country last year. This move comes as Chinese automakers face intense competition at home and higher tariffs for exports.

The Rhodium report also highlighted a decline in domestic manufacturing investments in the Chinese electric car industry, dropping from $90 billion in 2022 to $15 billion in 2024. The shift towards overseas investments aims to win foreign government support and expand market presence, despite concerns about technology leakage and job losses.

Notable investments include Great Wall Motor opening its first factory in Brazil and BYD starting production at its Brazilian factory. This trend indicates a strategic move by Chinese EV companies to establish a global.