Colliers: Insights into China's new energy vehicle overseas market in 2024

For vehicle manufacturers, it is relatively more economical to export production capacity overseas. In the case of overseas factory construction, when the capacity utilization rate reaches 50%, the gross profit margin of overseas factory construction can turn positive; when the capacity utilization rate exceeds 60%, it can exceed the gross profit margin of domestic sales; when the capacity utilization rate reaches 80%, the gross profit margin is significantly ahead of the domestic sales and vehicle export scenarios, and the economic benefits are prominent. Under the sharp comparison, it has become an inevitable trend for new energy vehicle companies to export their production capacity overseas.

As the production capacity of new energy vehicles continues to expand, some domestic auto parts companies have started global layout and expanded production capacity to meet the needs of vehicle companies in North America, Europe and other regions. In terms of operations, building factories nearby is conducive to parts suppliers to quickly respond to local customer needs, and can reduce costs such as freight and tariffs, and consolidate the market position of parts companies overseas. Parts companies that set up factories overseas can also achieve rapid business growth by expanding product categories, models, and customers.

The global manufacturing industry chain and supply chain are accelerating their adjustment in the direction of regionalization, nearshore and localization, gradually forming three major regions centered on France, Germany, China and the United States, radiating and driving the development of surrounding areas. In Europe, Germany is the center, radiating to the European Union; in Asia, China is the center, radiating to Japan, South Korea and ASEAN countries; in America, the United States is the center, radiating to Mexico, Brazil and other Latin American countries.

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