Chinese auto suppliers and EV makers flood Germany's biggest trade show By Reuters
Written by Victoria Waldersee
FRANKFURT (Reuters) – About 900 Chinese auto suppliers and a handful of EV makers are promoting their products at a trade show in Frankfurt as the country's auto sector defies looming trade barriers to expand its global footprint and erode profits at home.
Chinese automakers including BYD (SZ:), Geely, Hongqi and GAC International were to display their vehicles at the show, called Automechanika, as an additional part of the usually supplier-focused event.
The country's auto industry is investing heavily in overseas expansion as Europe and North America have set up trade barriers to curb the entry of Chinese-made EVs that they say benefit from unfair subsidies.
The so-called “EV Expo”, which opens on Tuesday, was established in collaboration with the China Council for the Promotion of International Trade, an additional feature of the usually supplier-focused event.
“We want EVs made by Chinese car manufacturers who are currently unknown if they will be trusted by the industry,” said Olaf Musshoff, director of Automechanika, in a press conference.
China's auto industry's share of China's total investment rose from 16% in 2018 to 22% in 2023, according to Moody's (NYSE: ) analysis, and auto exports hit a record high this year.
The large showing of Chinese suppliers – almost double the number of German suppliers present – highlights their growing role in the global supply chain, as Chinese carmakers continue to organize domestic production in Europe and elsewhere to avoid trade tariffs that limit imports.
A PwC study released this month warned that reduced access to equity is making it difficult for German suppliers to invest in new technology, hindered by a focus on cost efficiency.
Chinese companies – often backed by the government – are more likely to spend on developing batteries and software, the study says, gaining market share from German and Japanese firms.
Nevertheless, the size and scope of Automechanika Frankfurt – with 4,200 companies traveling to more than 170 countries – showed that Europe is still the center of innovation in the sector, said Frank Schlehuber of the European supplier association CLEPA.
“Frankfurt is still the center of gravity,” he said.
