A new wave of expansion

Chinese automakers are no longer just local competitors but emerging global leaders. Fifteen years ago, Chinese cars were seen as “budget options.” Today, BYD, Chery, Geely, and Great Wall are reshaping the global automotive landscape. According to the International Organization of Motor Vehicle Manufacturers (OICA), in 2023 China produced more than 30 million vehicles, nearly 32% of global output. In 2024, car exports surged by 58%, surpassing 5 million units, making China the world’s largest auto exporter, overtaking Japan.

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Why Europe welcomes China’s auto industry

Europe has become a key target market for Chinese automakers. The main reasons:

• Electrification. In 2024, over 20% of all new cars sold in Europe were EVs. Chinese brands like BYD and NIO are competitive with lower prices and advanced batteries.
• Price advantage. The average Chinese EV is 20–30% cheaper than its European counterpart.
• Rapid adaptation. Chinese automakers are setting up assembly plants and R&D centers in Hungary, Spain, and Germany to meet EU standards.

Example: In 2024, BYD launched an electric bus factory in Hungary and plans to build a full-scale EV plant in Europe by 2025.

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Latin America: a strategic foothold

Latin America is another fast-growing region for Chinese automakers. The reasons are clear:

• Affordability. In Brazil and Mexico, Chinese cars are on average 25% cheaper than Japanese and American models.
• Rising demand. In 2023, car sales in Latin America grew by 11%, with Chinese brands accounting for more than 15%.
• Distribution network. Chery and Great Wall have rapidly expanded dealerships — Chery alone operates over 150 outlets in Brazil.

Fact: In 2024, China became the largest car supplier to Mexico, overtaking both the U.S. and Japan.

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EVs as the main driver

Electric vehicles are at the heart of China’s auto strategy.

• BYD sold more than 3 million EVs in 2024, overtaking Tesla in global sales.
• NIO entered the European market with premium EVs featuring battery-swap technology, allowing a “refuel” in just 5 minutes.
• SAIC’s MG brand is booming in the UK, with the MG4 EV ranking in the top 10 best-selling models of 2024.

BloombergNEF forecasts that by 2030, Chinese EVs could hold 20% of Europe’s market and over 30% of Latin America’s.

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Geopolitics and risks

China’s rapid rise is not without tension. In 2024, the European Commission launched an investigation into Chinese state subsidies for EVs, fearing “auto-dependence” similar to past reliance on Russian energy. In Latin America, local manufacturers also warn of unfair competition from Chinese brands.

Still, consumer demand for affordable EVs and hybrids is forcing governments to balance protectionism with market growth.

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How Chinese automakers are rewriting the rules

1. Technology leadership. China controls over 70% of the world’s EV battery production.
2. New business models. Battery leasing, EV subscriptions, and direct online sales.
3. Global localization. Factories in Europe, Latin America, and Southeast Asia.
4. Brand evolution. From “cheap alternatives” to “innovative leaders.”

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Why it matters for consumers and investors

For consumers, Chinese automakers bring affordable, high-tech EVs to the market. For investors, they open access to one of the fastest-growing industries. The rise of China’s car industry means:

• accelerated global adoption of EVs,
• tougher competition for Western automakers,
• a shift of the automotive center of gravity toward China.

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FAQ

1. Why are Chinese automakers successful in Europe?
Because they offer lower prices, competitive EVs, and invest in local production.

2. What makes Latin America attractive for Chinese carmakers?
Fast-growing demand, lower competition, and strong price competitiveness.

3. Which Chinese companies lead the expansion?
BYD, Chery, SAIC (MG), Geely, and Great Wall.

4. Are local industries worried?
Yes, both Europe and Latin America face pressure on local manufacturers.

5. What’s next for Chinese automakers?
Higher EV market share in Europe and Latin America, new plants, and wider model ranges.