BEIJING — Chinese electric car companies are increasing investments in overseas factories as they ramp up competition against Tesla and other global automakers.
For the first time since records going back to 2014, the Chinese electric car supply chain last year invested more outside the country than at home, according to a U.S.-based consulting firm Rhodium Group report published Monday.
The bulk of announced overseas investment, or 74%, was in battery factories, the report said. But it noted investment in assembly plants abroad was also “growing rapidly.”
The spending plans come as Chinese automakers face intense competition at home and higher tariffs on exports. Boosting investments abroad can help Chinese businesses win foreign governments’ support for market expansion.
“Growing regulatory pushback in host markets like the EU is raising barriers to entry and will push more Chinese companies to establish local manufacturing operations,” the Rhodium report said.
