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China’s Automakers Gear Up for Global Domination! Doubling Overseas Capacity to Crush Tariffs

Carl Harrison by Carl Harrison
December 6, 2024
in Latest News
Reading Time: 2 mins read
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China’s Automakers Gear Up for Global Domination! Doubling Overseas Capacity to Crush Tariffs

FILE PHOTO: A NIO ET5 car model and the NIO EP9 sports car are pictured at the NIO House, the showroom of the Chinese premium smart electric vehicle manufacture NIO Inc. in Berlin, Germany August 17, 2023. REUTERS/Annegret Hilse/File Photo

In a stunning move to beat tariffs in Europe and the U.S., Chinese carmakers are supercharging their global operations by doubling overseas capacity by 2026! Companies like BYD and Chery are establishing massive plants in countries like Turkey, Hungary, and Spain, positioning themselves to dominate global markets. These strategic expansions will not only bypass crippling tariffs but also help meet soaring international demand for electric vehicles (EVs). China’s automakers are preparing for global EV supremacy.

The Big Plan Unveiled

Leading the pack, BYD is investing heavily in Europe, recently opening its first passenger car plant in Thailand and planning even more facilities in Turkey and Hungary. Meanwhile, Chery is collaborating on a new plant in Spain, aimed at flooding European roads with Chinese-made EVs. By expanding rapidly outside of their home market, Chinese automakers are countering the European Union’s increasing anti-subsidy tariffs on imported electric vehicles, which could otherwise dent their competitiveness​.

Beyond Europe: Global Takeover

The growth isn’t limited to Europe. Chinese automakers are also eyeing Southeast Asia and Latin America, markets where their influence is already surging. With these expansions, China is positioning itself as a dominant force in the global auto industry, projected to capture more than 30% of the world market by 2030. The strategy? Combine cost-efficiency with an aggressive push into underserved markets. As tariffs rise, Chinese manufacturers are banking on their ability to outmaneuver competitors by setting up local operations​.

A Global EV Powerhouse in the Making

Chinese automakers are building factories, not just to dodge tariffs but to create localized supply chains, boost job growth, and secure their place as global leaders. With 12 new plants planned across Europe and Asia, the race to dominate the electric vehicle market has begun. Chinese brands are moving swiftly, leveraging shorter development times, cost advantages, and advanced technology to make their vehicles more appealing to international buyers.

With massive production growth, Chinese automakers are on the fast track to global EV supremacy. Will they succeed in conquering the global market? At this pace, the world is about to find out!

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