China will become a major automotive export hub. Fueled by technological change, huge production capacity and government support China has the necessary require-ments to export vehicles on a large scale.
Europe is the main market for Chinese electric vehicle (EV) exporters. Europe has the second highest demand for EVs after China. Buyers benefit from high subsidies and a comparatively well-developed charging network. China’s automakers have government support to master European safety ratings.
China’s government directs and pressures Chinese and China-based foreign car-makers to export. The government has relegated its ambition to primarily promote national champions in favor of absorbing global value chains. The government is also setting targets and providing information about overseas regulations to help Chinese EV makers overseas advance.
Chinese manufacturers are moving up the value chain. Chinese car makers have leapfrogged established carmakers and can now produce desirable, safe and technolog-ically advanced EVs. A few Chinese brands have a shot to rank among the world’s most successful carmakers.
Chinese companies’ overseas investments and partnerships make them global competitors. Automotive competition is going to increase globally, and consequently Chinese battery manufacturers and carmakers are expanding their global footprint. Ex-ports are only the tip of the iceberg as companies pursue different strategies to leverage international brands and access overseas markets.
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