Chinese electrical vehicle company BYD is planning to build its first plant outside of Asia in Brazil’s northeastern state of Bahia –– a move that’s part of a wider effort by EV makers in China to expand beyond the domestic market.
The facility will include hybrid and electric car production –– and will also produce electric buses and trucks, Bloomberg reported, with operations expected to start by 2024.
We’ve curated helpful analysis on Chinese EV makers’ global expansion plans.
- According to one KPMG economist, Chinese carmakers could capture 15% of the European EV market by 2025, largely because of their affordable prices and wide range of EV models that cater to consumer needs.
- However, given thats it’s too early to say whether Chinese EV makers will dominate in Europe, they’re also eyeing the Middle East as China continues to assert its influence there. “Oil is relatively cheap [in the Gulf countries] but can be exported for a big profit margin. The money made from export can then go toward subsidizing the domestic EV industry,” auto influencer Emma Meng told TechCrunch.
The U.S. has rules-of-origin restrictions which make it difficult for foreign-made cars to compete, so Chinese EV companies have been targeting Europe and the Middle East, among other regions.