Chinese EV makers invest more abroad than at home for first time

Chinese electric vehicle makers invested more abroad than in their domestic market for the first time last year, as fierce competition at home has made it almost impossible for manufacturers to turn a profit there. Reuters reported this, citing the latest data from Rhodium Group.

Chinese automakers, long supported by state subsidies and policies focused on electric vehicles, are now facing excess capacity and fierce price wars affecting the entire sector. These price wars are adding to deflationary pressures and raising concerns about an influx of cheap Chinese cars into foreign markets, worsening trade tensions with key partners and weighing on the export-oriented economy, particularly amid the tariffs imposed by US President Donald Trump.

Chinese investment in overseas projects across the electric vehicle value chain, covering the entire production process, rose to an annual average of USD 30.4 billion (629.7 billion Kč) in 2022 – 2024, up from USD 8.5 billion in 2018 – 2021. Domestic investment in the sector, by contrast, fell dramatically to just USD 15 billion in 2024 from USD 94 billion in 2022.

"In 2024, Chinese companies invested more in electric vehicles abroad than at home, marking a historic shift as firms seek profits outside a domestic market that is overcrowded and intensely competitive," Rhodium Group said.

Among individual companies, BYD is building an electric vehicle plant in southern Hungary that is expected to begin production by the end of 2025, while also preparing a separate facility in Turkey, due to start operating in 2026. Geely is planning a new factory in Vietnam, while Chery and Great Wall Motors are expanding production in Russia and across Latin America. Other manufacturers are also considering investments in Southeast Asia and India.