Home Business German EV Investment in China Growing

* German auto giant Audi and Chinese automaker FAW’s new energy vehicle (NEV) joint project is making remarkable progress as they strive to establish their first pure electric vehicle production facility in the country.

* Despite the EU’s recent anti-subsidy probe into Chinese electric vehicles, German companies remain committed to China’s automotive sector, with German automakers increasing their investments in China to expand their presence.

* German car manufacturers are tapping into China’s technological advancements and its growing importance in the global automotive landscape.

In China’s automobile hub of Changchun, German auto giant Audi and Chinese automaker FAW’s new energy vehicle (NEV) joint project is making remarkable progress as they strive to establish their first pure electric vehicle production facility in the country.

With a total investment exceeding 35 billion yuan (4.87 billion U.S. dollars), this state-of-the-art factory is set to become one of Audi’s most advanced manufacturing sites globally, focusing on cutting-edge technologies and sustainability, according to Audi FAW NEV Co., Ltd.

“We’ve completed the main structural work, and our plan is to begin pre-mass production by year-end, followed by the production of three pure electric models by the end of the next year, with an annual production capacity of over 150,000 vehicles,” said Wang Kaiyu, with Audi FAW NEV Co., Ltd.

Constructors work at a construction site of the Audi-FAW new energy vehicle (NEV) project in Changchun, northeast China’s Jilin Province, June 26, 2023. (Xinhua)

Despite the EU’s recent anti-subsidy probe into Chinese electric vehicles, German companies remain committed to China’s automotive sector, with German automakers increasing their investments in China to expand their presence.

The confidence in the Chinese market was also evident at the recent 2023 China-Germany Automotive Conference held in Changchun, where industry insiders from both sides emphasized collaboration, mutual learning, and market growth in new energy, intelligent connectivity, and other innovative sectors.

Helmut Stettner, CEO of Audi FAW NEV Co., Ltd., shared the company strategy of “In China, for China,” at the conference, which emphasizes developing and manufacturing products locally and expanding their business in China.

Guests attend the 2023 China-Germany Automotive Conference in Changchun, northeast China’s Jilin Province, Oct. 18, 2023. (Xinhua/Si Xiaoshuai)

China is the world’s largest producer and consumer of automobiles. Data from the China Association of Automobile Manufacturers showed that from January to September, China’s NEV production and sales reached 6.31 million and 6.28 million units, respectively, up 33.7 percent and 37.5 percent, respectively, from the same period last year.

Notably, the market share of NEVs in China reached 29.8 percent, presenting great market potential.

Apart from Audi, other German traditional automobile giants are also dedicated to tapping into China’s technological advancements and its growing importance in the global automotive landscape.

BMW is constructing a new battery project in the northeastern Chinese city of Shenyang, showing its commitment to electrification. Company data showed that, in the first nine months this year, BMW’s pure electric vehicle sales in China surged by 232 percent from the same period last year.

Mercedes-Benz also signed a cooperation memorandum on Oct. 17 in Shanghai to deepen collaboration in autonomous driving and intelligent connected vehicles.

A concept car of Mercedes-Benz is displayed at the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 18, 2023. (Xinhua/Xin Mengchen)

Furthermore, the collaborative spirit extends to smaller German enterprises looking to work with market leaders in the Chinese NEV sector.

Christian Conrad, Chief Business Development Manager of Fraunhofer Institute for Nondestructive Testing, expressed his goal of connecting with leading NEV companies, like BYD, for potential research and industrial projects.

Conrad said there is still much to learn from China, such as marketing, battery materials, and customized car features, and that both sides should work together to expand the market and provide consumers with better products that meet their needs.

Visitors learn about new energy vehicles of Chinese carmaker BYD during the 27th Guangdong-Hong Kong-Macao Greater Bay Area International Auto Show at the Shenzhen Convention and Exhibition Center in Shenzhen, south China’s Guangdong Province, June 16, 2023. (Xinhua/Liang Xu)

Collaboration between China and Europe in the automotive sector continues to gain momentum.

In 2022, European investment in China reached 12.1 billion U.S. dollars, up 70 percent year-on-year, with the automotive sector remaining a major hotspot.

During the same period, China’s investment in Europe reached 11.1 billion U.S. dollars, marking a 21 percent year-on-year increase, with the additional investments focused on new energy, automobiles, and machinery.

“As the global automotive industry accelerates its transformation, China-German cooperation will further extend and expand, achieving synergy and mutual benefit in technology, market, talent, management, supply chain, and innovation chain,” said Chong Quan, head of the China Society for World Trade Organization Studies.

Shayne Heffernan

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.