In a bold move to overcome domestic profitability challenges and navigate global trade barriers, nearly 900 Chinese auto suppliers and several electric vehicle (EV) manufacturers are showcasing their products at the Automechanika trade fair in Frankfurt. This event, traditionally a platform for suppliers, is witnessing a new trend with the presence of prominent Chinese automakers such as BYD, Geely, Hongqi, and GAC International.
Despite the emergence of trade barriers in Europe and North America aimed at limiting the influx of China-made EVs, China’s auto sector is undeterred. They are investing heavily in overseas expansion, seeking to establish themselves as major players in the global market. The “EV Expo,” a dedicated space at Automechanika, was established in partnership with the China Council for the Promotion of International Trade. This signifies the growing significance of the Chinese auto industry and its determination to secure a foothold in international markets.
Olaf Musshoff, director of Automechanika, expressed at a press conference, “We want EVs made by Chinese carmakers which are currently to some extent unknown to gain trust in the industry.” This statement highlights the need for Chinese EV manufacturers to build credibility and acceptance among international consumers.
The sheer number of Chinese suppliers participating at the fair, almost double the number of German suppliers, underscores their expanding role in the global supply chain. Chinese automakers are increasingly planning local production in Europe and other regions to circumvent trade tariffs limiting imports.
This push for global expansion comes in the wake of the European Commission’s imposition of additional tariffs of up to 37.6% on EV imports from China in July. These tariffs were a response to concerns that state-subsidized, cheaper EVs from China could pose a threat to domestic players. The EU’s actions mirror similar steps taken by the U.S. and Canada to restrict access of Chinese EVs into their markets.
In response to these tariffs, Chinese EV manufacturers began exploring Africa as a potential market. However, China also voiced strong opposition to these tariffs in August, labeling them as “unfair” and assuring its commitment to safeguard its EV industry against such actions.
The Chinese auto industry’s proactive approach to expanding its global reach demonstrates its resilience in the face of trade challenges. Their strategic focus on establishing local production and diversifying markets suggests a long-term commitment to internationalization. The Automechanika fair provides a crucial platform for Chinese automakers to showcase their capabilities, build relationships with potential partners, and ultimately gain greater access to the global automotive market.
