Chinese and European automakers are forging stronger partnerships in the rapidly expanding new energy vehicle (NEV) market. This collaboration is marked by significant investments and increased production capacities aimed at meeting the soaring demand for electric and intelligent vehicles.
In April 2024, BMW announced an additional investment of 20 billion yuan (approximately $2.8 billion) in its Shenyang production base in Liaoning Province. This investment aims to localize the production of a new generation of BMW models by 2026. Similarly, Volkswagen AG has established its largest research and development (R&D) center outside of Germany in China, focusing on the development of intelligent networked vehicles.
The thriving Chinese NEV market is also attracting auto parts firms like Gestamp, which is ramping up its investment in R&D for new technologies to support Chinese original equipment manufacturers (OEMs) in producing electric, lightweight, and environmentally friendly parts. In 2023, German auto supplier ZF Group launched an NEV auto parts industrial park in Shenyang with a 2.2 billion yuan investment, while Bosch expanded its NEV core components and autonomous driving R&D and manufacturing base in Suzhou, Jiangsu Province, set to become operational later this year.
Optimism among carmakers and parts suppliers is fueled by robust demand in the Chinese market. According to the China Association of Automobile Manufacturers, NEV production and sales reached 4.93 million and 4.94 million units respectively in the first half of 2024, reflecting year-on-year growth of 30.1% and 32%.
At BMW Brilliance Automotive Ltd.'s Tiexi plant in Shenyang, electric vehicles are being prepared for global distribution alongside bustling auto parts factories like Gestamp's facility. Gestamp, a Spanish multinational specializing in highly engineered metal components, has significantly expanded its operations in China, now operating 14 factories and two R&D centers with over 5,000 employees.
Antonio Lopez Arce, CEO of Gestamp's Asia division, emphasized the strategic importance of investing in China, stating, \"China boasts a vast, innovative and dynamic auto market. We continue to introduce our cutting-edge body in white, chassis and battery box technologies and products to China.\"
On the global front, Chinese automakers and supply chain companies are also establishing a presence in Europe. In April, Spanish company Ebro-EV Motors partnered with China’s Chery Automobile to develop NEVs through a joint venture in Barcelona. Additionally, BYD announced the establishment of an NEV production base in Hungary in December 2023 to support local green energy ecosystems.
At the 15th Annual Meeting of the New Champions, also known as the 2024 Summer Davos, Chinese companies showcased their technological advancements. Zeng Yuqun, board chairman of Contemporary Amperex Technology Co., Ltd., highlighted the company's commitment to providing high-quality batteries globally to promote green travel. Cao Xudong, CEO of Momenta, reflected on the mutual benefits of China’s advancements in NEVs, stating, \"China's strides in NEVs benefit nations worldwide, reflecting mutually beneficial cooperation.\"
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Chinese and European automakers forge closer ties, deepen cooperation
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