The competitive landscape for Chinese automakers has shifted from overseas shipping to overseas production.
In 2026, leading EV manufacturers are no longer relying solely on export-based growth. Instead, they are accelerating the construction of localized production and assembly networks across Latin America, Southeast Asia, the Middle East, and parts of Europe.
This transition is largely driven by two forces: increasing trade barriers in developed markets and margin pressure in China’s domestic EV sector, where profitability has tightened significantly due to intense price competition.
BYD: Scaling Local Production at Global Speed
BYD has taken the lead in localization strategy. Its Brazilian manufacturing base is expected to become a key hub for Latin America, reducing tariff exposure while improving delivery efficiency.
In Southeast Asia, BYD’s Thailand operations are already producing early batches of right-hand-drive models, targeting regional demand where electrification adoption is accelerating but still uneven.
Chery & Geely: Flexible Global Expansion Models
Chery continues to expand through SKD and CKD assembly routes in Eastern Europe and North Africa, allowing faster market entry with lower capital risk.
Geely, leveraging its global brand ecosystem (including Volvo and Polestar), is focusing on higher-end localized production hubs, particularly in regions with stricter content requirements.
What connects all three strategies is a shared shift in mindset: from “exporting cars” to “building regional automotive ecosystems.”
This approach not only reduces tariff pressure but also helps brands integrate into local supply chains more effectively.