Historic Shift in Investment: For the first time since records began in 2014, China’s electric vehicle (EV) sector invested more in overseas factories than domestic ones in 2024. This marks a strategic pivot as Chinese automakers face rising competition and export tariffs.
Key Numbers:
Domestic EV manufacturing investment plunged to $15B in 2024, down from $41B in 2023 and over $90B in 2022.
Overseas investment “narrowly surpassed” domestic spending, though exact figures weren’t disclosed.
Where the Money’s Going:
74% of overseas investment is in battery factories, with assembly plants also growing fast.
Brazil, Indonesia, and Southeast Asia are hot spots. Great Wall Motor just opened its first Brazilian plant.
Why the Shift?
Tariff pressure from the US and EU is pushing Chinese firms to localize production.
Regulatory hurdles in host countries are rising, but local manufacturing helps win political and market support.
Automotive was the second-most active sector for Chinese outbound investment in Q2 2025.
Battery materials firm GEM led with a $293M expansion in Indonesia.
(source South China Morning Post)
—Agencies
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