Chinese autos looking to meet global demand

Market proximity, geopolitical stress, trade frictions lead to more offshore vehicle production

More than 1,000 years ago, an overland trading route starting from present-day Xi'an, Shaanxi province, transported silk and porcelain during the Tang Dynasty (618-907) to West Asia and Europe. Today, the Silk Road still exists, but its cargo has evolved to new energy products, with electric vehicles leading the charge.

Due to cost-effectiveness, improved quality and efficient after-sales service, Chinese new energy vehicles have steadily gained a larger market share by offering affordable solutions to green transition drives in more countries, especially developing economies.

Most recently, Chinese NEVs and auto parts manufacturers are increasingly setting up production facilities overseas, as their foreign clients demand quick responses to their needs and on-time delivery amid heightened supply chain security concerns — all within the context of deglobalization and geopolitical tensions. Central Europe and Mexico are becoming key destinations for investment.