China auto suppliers and EV makers flood major trade fair in Germany

admin admin | 09-10 16:20

Chinese carmakers set to display their vehicles at the fair, called Automechanika.
Nearly 900 Chinese auto suppliers and a handful of EV makers are showcasing their products at a trade fair in Frankfurt as the country's car sector defies looming trading barriers to expand its global footprint and counter eroding profitability at home.

Chinese carmakers including BYD, Geely, Hongqi and GAC International were set to display their vehicles at the fair, called Automechanika, as an added feature to the event which normally focuses on suppliers.

The country's auto sector is investing heavily in overseas expansion even as Europe and North America erect trade barriers to stem the inflow of China-made EVs they say benefit from unfair subsidies.

The so-called "EV Expo", which opens on Tuesday, was set up in partnership with the China Council for the Promotion of International Trade, an added feature to the event normally focused on suppliers.

"We want EVs made by Chinese carmakers which are currently to some extent unknown to gain trust in the industry," Olaf Musshoff, Automechanika's director, said in a press conference.

China's auto sector's share of China's total outbound investments rose from 16% in 2018 to 22% in 2023, according to a Moody's analysis, and car exports have reached record highs this year.

The large showing of Chinese suppliers - almost double the number of German suppliers in attendance - highlights their growing role in the global supply chain, with Chinese carmakers increasingly planning local production in Europe and elsewhere to circumvent trade tariffs limiting imports.

A PwC study released this month warned that dwindling availability of equity was making it harder for suppliers in Germany to invest in innovative technologies, bogged down by a focus on cost efficiency.

Chinese companies - often with state backing - were more likely to spend on improving batteries and software, the study said, winning market share from German and Japanese firms.

Still, the size and scope of Automechanika Frankfurt - with 4,200 companies attending from over 170 countries - demonstrated Europe was still central to promoting innovation in the sector, said Frank Schlehuber of Europe's supplier association CLEPA.

"Frankfurt is still the centre of gravity," he said.

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.


ALSO READ

Sky-high shopping: South Korea unveils ‘flying cart’ drone for transporting goods over any terrain

SEOUL, Oct 23 — South Korean researchers have developed a transport drone flying on multiple flexibl...

tech | 1 hour ago

Africa’s best-kept secret: Mozambique rolls out 100pc homegrown premium cigars for the global market

MAPUTO (Mozambique), Oct 23 — In a small neon-lit factory in Maputo, a dozen workers are hand-rollin...

life | 1 hour ago

In South Africa, dry taps are the new reality as water crisis deepens

JOHANNESBURG, Oct 23 — Joyce Lakela runs a nursery in Tembisa, a Johannesburg township, but these da...

world | 1 hour ago

From horror to hope: Rwanda’s genocide survivors rebuild lives 30 years on

PARIS, Oct 23 — Jeanne Allaire Kayigirwa was sure she was going to die three times during the Rwanda...

world | 1 hour ago

Hyundai Motor India lists with record IPO, commits to Indian market with new tech and EV plans

As part of its effort to introduce clean mobility solutions for Indian buyers, Hyundai will launch f...

auto | 9 hours ago

Skoda Auto Volkswagen India plants over 7 lakh trees in Maharashtra for ecological restoration

Additionally, SAVWIPL has installed 18.5 MWp of rooftop solar power at its Chakan facility, which of...

auto | 9 hours ago