Chinese Auto Suppliers and EV Makers Overwhelm Major German Trade Fair
Nearly 900 Chinese auto suppliers and several electric vehicle (EV) manufacturers are participating in the Automechanika trade fair in Frankfurt. This event highlights China’s efforts to expand its global market presence despite increasing trade barriers and declining domestic profits.
Chinese carmakers such as BYD, Geely, Hongqi, and GAC International are showcasing their vehicles at the fair, which is typically focused on suppliers. Victor Yang, Geely’s senior vice-president, stated that despite potential European opposition, Geely remains committed to the European market. Geely, which sold about 200,000 cars in Europe in the first half of this year, faces a proposed 19.3% tariff on its China-made EVs, a move Yang has criticized.
China’s auto sector is investing heavily in international markets as Europe and North America implement trade barriers to limit the influx of Chinese EVs, citing concerns over unfair subsidies. The EV Expo, opening Tuesday, is an addition to the fair, organized with the China Council for the Promotion of International Trade, aimed at increasing trust in Chinese-made EVs.
Chinese carmakers’ share of European passenger car sales increased to 17% in the first seven months of 2024 from 12% a year earlier. Chinese car exports have reached record levels this year. The significant presence of Chinese suppliers at the fair underscores their growing role in the global supply chain and their plans for local production in Europe to bypass trade tariffs.
A PwC report this month noted that German suppliers are struggling with cost efficiency and limited capital, making innovation challenging. Chinese firms, often supported by the state, are investing more in battery and software advancements, gaining market share from German and Japanese competitors.
Despite these shifts, Automechanika Frankfurt, with 4,200 companies from over 170 countries, remains a key hub for automotive innovation, according to Frank Schlehuber of Europe‘s supplier association CLEPA. “Frankfurt is still the centre of gravity,” he noted.
Chinese carmakers such as BYD, Geely, Hongqi, and GAC International are showcasing their vehicles at the fair, which is typically focused on suppliers. Victor Yang, Geely’s senior vice-president, stated that despite potential European opposition, Geely remains committed to the European market. Geely, which sold about 200,000 cars in Europe in the first half of this year, faces a proposed 19.3% tariff on its China-made EVs, a move Yang has criticized.
China’s auto sector is investing heavily in international markets as Europe and North America implement trade barriers to limit the influx of Chinese EVs, citing concerns over unfair subsidies. The EV Expo, opening Tuesday, is an addition to the fair, organized with the China Council for the Promotion of International Trade, aimed at increasing trust in Chinese-made EVs.
Chinese carmakers’ share of European passenger car sales increased to 17% in the first seven months of 2024 from 12% a year earlier. Chinese car exports have reached record levels this year. The significant presence of Chinese suppliers at the fair underscores their growing role in the global supply chain and their plans for local production in Europe to bypass trade tariffs.
A PwC report this month noted that German suppliers are struggling with cost efficiency and limited capital, making innovation challenging. Chinese firms, often supported by the state, are investing more in battery and software advancements, gaining market share from German and Japanese competitors.
Despite these shifts, Automechanika Frankfurt, with 4,200 companies from over 170 countries, remains a key hub for automotive innovation, according to Frank Schlehuber of Europe‘s supplier association CLEPA. “Frankfurt is still the centre of gravity,” he noted.
