In 2024, Chinese electric car makers invested more abroad than at home for the first time, facing fierce domestic competition and profitability challenges. Chinese automakers engaged in relentless price wars, with outbound foreign direct investment in the EV value chain soaring to $30.4 billion annually, while domestic investment plummeted to $15 billion.

Amid fears of cheap Chinese cars flooding global markets, Chinese automakers are focusing investments on Asia, the Middle East, and Africa. The sector’s median net profit margin fell to 0.83% in 2024. China-Gulf free trade deal concerns may limit investment avenues. Chinese leaders aim to end aggressive price cuts in various industries.

BYD, Geely, Chery, and Great Wall Motors are expanding EV production globally, with BYD building a factory in Hungary and Turkey. Chinese automakers are looking to invest in Southeast Asia and India. Facing EV tariffs from major economies, Chinese companies are shifting investments towards Asia, the Middle East, and Africa.

Read more at Yahoo Finance: Chinese automakers’ foreign investment tops domestic spending for first time, data shows