China's Ministry of Commerce held a meeting three months ago with over half a dozen auto firms, directing them not to make auto related investments in India.
12 Sep 2024 | 2531 Views | By Autocar Pro News Desk
China has urged its auto makers to ensure that its advanced EV technolgy is not shared outside the country, even as they build factories the world over, to avoid punishing tariffs on Chinese exports, persons in the know told Bloomberg.
Beijing is asking its homegrown car firms to export ...
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China has urged its auto makers to ensure that its advanced EV technolgy is not shared outside the country, even as they build factories the world over, to avoid punishing tariffs on Chinese exports, persons in the know told Bloomberg.
Beijing is asking its homegrown car firms to export so called knock down kits to their foreign plants, the newswire reported citing sources, essentially meaning that the main parts of a vehicle will be made in the country, only to be sent off to the destination market for final assembly.
These directives come against the backdrop of firms such as BYD alongside Cherry Automobile shaping up plans to make factories in Spain and Hungary to Thailand, , as their EVs enter foreign markets, Bloomberg reported.
Persons in the know also told the newswire on condition of anonymity that China's Ministry of Commerce held a meeting three months ago with over half a dozen auto firms, directing them not to make auto related investments in India.
Besides this, Chinese carmakers keen on investing in Turkey, must first notify the Ministry of Industry and IT that supervises China's EV industry, and the local Chinese embassy in Turkey, Bloomberg reported.
The newswire could not elicit a response from the Ministry of Commerce, or MOFCOM.
MOFCOM rules mandate that crucial production must be in within China, thwarting Chinese automakers' globalisation plans, as they look for new customers to tend off competition and sluggish sales at home which is eating into their bottomlines, the newswire reported.
It could also come as a blow to those European nations wooing Chinese carmakers in the hopes their presence will bring jobs and a local economic boost.
During the meeting, MOFCOM noted that the countries inviting Chinese automakers to build factories are usually those enacting or considering trade barriers against Chinese vehicles. Officials told attendees that manufacturers shouldn’t blindly follow trends or believe such calls for investment from foreign governments, according to the people, the newswire noted.
Chinese EV stocks pared early gains Thursday with SAIC Motor falling more than 1% in Shanghai and Geely Automobile Holdings Ltd. and BYD slightly down in Hong Kong, the newswire noted.