Nearly 900 Chinese auto suppliers and electric vehicle makers are participating in a Frankfurt trade fair, showcasing China’s car sector’s global expansion despite trading barriers and declining domestic profits.
Chinese carmakers like BYD, Geely, Hongqi, and GAC International participated in Automechanika, an event typically focused on suppliers. This year, they showcased their vehicles as a new feature, highlighting China’s growing presence in the global automotive industry China’s EV Suppliers. Their involvement marked a shift in the event’s usual focus.
Victor Yang, Geely’s senior vice-president, reaffirmed the company’s dedication to Europe, stating, “Even if some in Europe oppose us, China’s EV Suppliers Dominate German Trade Fair we will remain committed to the European market.” Geely stood out as the only car manufacturer to hold a press conference during the Automechanika fair.
Geely, which Yang reported sold approximately 200,000 cars in Europe during the first half of this year, will be subject to tariffs of up to 19.3% on its China-manufactured electric vehicles under the European Commission’s current proposals, a move the company has previously called “disappointing.”
Collaboration Strengthens Our Industry,” Yang Says
China’s automotive industry is making significant investments in global expansion, despite Europe and North America implementing trade barriers to limit the influx of China-produced electric vehicles, which they claim are advantaged by unfair subsidies.
The “EV Expo,” scheduled to open on Tuesday, was organized in collaboration with the China Council for the Promotion of International Trade, adding a new dimension to the event, which typically focuses on suppliers.
The significant presence of Chinese suppliers, nearly twice the number of German suppliers at the event, underscores their expanding influence in the global supply chain. This comes as Chinese automakers increasingly look to establish local production in Europe and other regions to avoid trade tariffs.China’s EV Suppliers Dominate German Trade Fair.
A PwC study published this month cautioned that the emphasis on cost efficiency, coupled with shrinking access to capital, is making it more difficult for suppliers in Germany to invest in cutting-edge technologies.
Despite challenges, the scale and reach of China’s EV Suppliers Automechanika Frankfurt — with 4,200 companies from more than 170 countries participating — showed that Europe remains a key hub for driving innovation in the industry, China’s EV Suppliers according to Frank Schlehuber from Europe’s supplier association CLEPA.
According to the study, Chinese companies, often supported by the state, were more inclined to invest in enhancing batteries and software, allowing them to gain market share from German and Japanese competitors.