China’s EV industry is spending more on factories abroad than at home for the first time

## China’s EV Makers Go Global: Investing Overseas Heats Up

Chinese electric vehicle (EV) companies are aggressively expanding their global footprint, investing heavily in overseas factories to compete with established players like Tesla. Here’s a breakdown of the trend:

• Overseas Investment Surge: For the first time since 2014, Chinese EV supply chains invested more outside of China than within the country in 2024.
• Battery Factory Focus: The majority (74%) of overseas investment is directed towards battery factories, with assembly plants also seeing rapid growth.
• Driving Factors: This shift is fueled by intense domestic competition, higher export tariffs, and a desire to gain support from foreign governments for market expansion.
• Regulatory Pushback: Growing regulatory hurdles in markets like the EU are pushing Chinese companies to establish local manufacturing.
• Domestic Investment Decline: Domestic investment in EV manufacturing plummeted in 2024, following a peak in 2022.
• Key Players Expanding: Companies like Great Wall Motor (Brazil) and BYD (Brazil) are opening factories and increasing overseas sales. Envision (France) has also started production.
• Challenges Remain: Only 25% of announced overseas manufacturing plans have been completed, and Chinese firms face potential tighter controls on outbound investment from their own government.

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