Thu Sep 12 06:22:52 UTC 2024: ## China Urges Automakers to Keep EV Tech Domestic While Expanding Abroad
**BEIJING** – In a move to protect its burgeoning electric vehicle (EV) industry, China has reportedly advised its automakers to prioritize keeping advanced EV technology within the country, even as they expand manufacturing overseas.
According to Bloomberg, China is recommending that automakers export “knock-down kits” for assembly at their foreign plants, ensuring key components continue to be produced domestically. This strategy comes as Chinese automakers, including EV giant BYD, seek to bypass hefty tariffs imposed by the US, Canada, and Europe on vehicles made in China.
The Ministry of Commerce has also instructed automakers against any investment in India’s automotive sector, further highlighting the government’s commitment to fostering a strong domestic EV ecosystem.
This strategy is seen as a measure to protect China’s EV technological advantage while simultaneously expanding its global market reach. Chinese EVs are already proving popular abroad due to their competitive pricing, and companies like Chery (Spain) and BYD (Hungary) are establishing manufacturing facilities to capitalize on this demand.
However, the move also underscores the fierce competition and price wars within China’s domestic EV market, which are impacting profit margins. By exporting technology and expanding overseas, Chinese automakers aim to secure new revenue streams and solidify their position in the global EV landscape.
First Piper 