China's EV Giants Shift Focus to Foreign Markets in 2024
In a significant shift, Chinese companies have invested more in foreign electric vehicle (EV) markets than in the domestic market for the first time in 2024. This comes as investments in the domestic stock market today plummeted to $15 billion, a stark contrast to the record $94 billion in 2022.
The slowdown in domestic stock market investment coincides with major manufacturers like BYD scaling back production in China. BYD is aiming for a 20% export share this year, indicating a strategic shift towards international markets. This trend is evident in Geely's expansion into Vietnam and Great Wall Motor's new plant in Brazil.
Meanwhile, the Chinese Communist Party is expected to introduce measures to cool down the EV, lithium, battery, and steel sectors. From 2022 to 2024, Chinese companies have invested an average of $30.4 billion annually in the global EV value chain, more than triple the $8.5 billion invested from 2018 to 2021.
BYD has plans to open its first European factory in Szeged, Hungary, in 2025, with the compact electric car Dolphin Surf as the initial model. The company aims to avoid EU tariffs and is also exploring opportunities in Southeast Asia, Latin America, and the Middle East.
The decline in domestic stock market investments and the increased focus on foreign markets suggest a new phase in China's EV industry. As companies like BYD expand globally, the Communist Party is poised to implement measures to regulate the industry's growth. The coming years will likely see a continued shift in China's EV landscape.
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