China’s EV, battery firms bolt into emerging markets as trade remains caustic

Chinese electric vehicle (EV) and battery makers are continuing to expand their presence in emerging markets like Latin America – despite heightened political resistance from the European Union and United States – as the country looks to cement its leading position in the industry.

EV giant BYD and battery producer Contemporary Amperex Technology Limited (CATL), two firms among many in the rapidly expanding field, have announced plans to make inroads into overseas markets.

“In the coming five to 10 years, regions such as Southeast Asia, Europe, Latin America and parts of Africa are expected to have high demand for Chinese-made cars and electric vehicles,” said Matteo Giovannini, a senior finance manager at the Industrial and Commercial Bank of China and a non-resident associate fellow at the Centre for China and Globalization.

Giovannini cited economic growth, urbanisation, government policies, environmental regulations, advancements in EV technology and changing consumer preferences as reasons for the spike.

The trend of Chinese EV and battery makers building overseas factories or taking part in joint ventures foreign companies would “intensify”, Giovannini added, as cost and efficiency considerations weigh on companies looking to expand along with a pressing need for diversification against risk. Economic incentives and global market integration are also playing a role, he said.

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‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market

Figures from the China Association of Automobile Manufacturers as quoted by Fitch Ratings showed that EV exports from the world’s second-largest economy rose 30.5 per cent year on year for the first half of 2024, a total shipment of 2.8 million units.

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