Quote from
Alex bobby on October 18, 2024, 6:03 AM
Companies such as EV giant BYD have made inroads in markets from Southeast Asia to Latin America and Africa.
China's pursuit of global dominance in the electric vehicle (EV) market remains relentless, even as it faces tariffs from major economies like the U.S., Canada, and the European Union. As a response, China has shifted focus to emerging markets in Southeast Asia, Latin America, and Africa, where it has made significant inroads. EV giants like BYD and Great Wall are leading the charge, expanding production facilities in countries such as Thailand and Brazil, and opening new markets in Africa.
Bangkok, Brazil and Ethiopia
In Thailand, BYD has captured 40% of the EV market and opened a production facility, while Great Wall has started mass-producing EVs overseas. Additionally, BYD ranks highly in Singapore and Malaysia, competing with luxury brands like BMW and Mercedes-Benz. In Latin America, BYD is planning to bring 100,000 EVs to Uber drivers and has plans for a new factory in Brazil by 2025. These developments show China’s aggressive global push, fueled by the desire for profit and growth in regions that lack the infrastructure and tariffs that exist in developed nations.
Africa, with its untapped market, is an appealing target for Chinese EV makers, despite challenges like the lack of charging infrastructure. Through partnerships like the one with Ethiopia to introduce half a million EVs, China is establishing long-term relationships focused on green energy. The growing demand for sustainable energy across 40 African countries has also led to the implementation of over 120 green energy projects, indicating a strong future market for EVs.
China’s ability to build roads, schools, and energy projects in developing countries has further solidified its market presence. This transactional relationship, where infrastructure development is exchanged for market access, benefits both China and these emerging economies. In regions like Latin America and Africa, countries see the EV industry as an opportunity for job creation and technological growth.
Mutual benefits
Analysts highlight that while the U.S. is taking steps to bolster renewable energy investments through initiatives like the U.S.-Africa Leaders Summit, China’s proactive approach and large-scale infrastructure projects give it a competitive edge. As China’s influence grows in developing countries, particularly in the EV sector, it signals a potential shift in global trade dynamics and political alliances in the future.
China’s aggressive expansion in the global electric vehicle (EV) market demonstrates its strategic focus on emerging economies, especially as developed nations impose tariffs and restrictions. By establishing strong market presence in regions like Southeast Asia, Latin America, and Africa, Chinese EV companies are not only filling the gap left by trade barriers but are also fostering long-term relationships through infrastructure development and green energy initiatives. As developing countries welcome China’s investments in EV technology and infrastructure, the global landscape could shift significantly in the coming years, with many nations potentially aligning more closely with China. While the U.S. and other Western countries are taking steps to strengthen their presence in these markets, China’s head start and comprehensive approach suggest it will remain a dominant force in the global EV sector.
Washington, however, is not sitting back. At the U.S.-Africa Leaders Summit in 2022, the United States committed to $55 billion in pledges over three years that included investments in renewable energy infrastructure, clean energy and efforts to mitigate climate change.
Berg said geopolitics also is a motivating factor in Beijing's push into developing countries in South America.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
"They are in their geopolitical competition with [the United States], engaging in reciprocity ... showing that they can be extremely active in some ways and especially in the economic domain in our neighborhood," he said.
Companies such as EV giant BYD have made inroads in markets from Southeast Asia to Latin America and Africa.
China's pursuit of global dominance in the electric vehicle (EV) market remains relentless, even as it faces tariffs from major economies like the U.S., Canada, and the European Union. As a response, China has shifted focus to emerging markets in Southeast Asia, Latin America, and Africa, where it has made significant inroads. EV giants like BYD and Great Wall are leading the charge, expanding production facilities in countries such as Thailand and Brazil, and opening new markets in Africa.
Bangkok, Brazil and Ethiopia
In Thailand, BYD has captured 40% of the EV market and opened a production facility, while Great Wall has started mass-producing EVs overseas. Additionally, BYD ranks highly in Singapore and Malaysia, competing with luxury brands like BMW and Mercedes-Benz. In Latin America, BYD is planning to bring 100,000 EVs to Uber drivers and has plans for a new factory in Brazil by 2025. These developments show China’s aggressive global push, fueled by the desire for profit and growth in regions that lack the infrastructure and tariffs that exist in developed nations.
Africa, with its untapped market, is an appealing target for Chinese EV makers, despite challenges like the lack of charging infrastructure. Through partnerships like the one with Ethiopia to introduce half a million EVs, China is establishing long-term relationships focused on green energy. The growing demand for sustainable energy across 40 African countries has also led to the implementation of over 120 green energy projects, indicating a strong future market for EVs.
China’s ability to build roads, schools, and energy projects in developing countries has further solidified its market presence. This transactional relationship, where infrastructure development is exchanged for market access, benefits both China and these emerging economies. In regions like Latin America and Africa, countries see the EV industry as an opportunity for job creation and technological growth.
Mutual benefits
Analysts highlight that while the U.S. is taking steps to bolster renewable energy investments through initiatives like the U.S.-Africa Leaders Summit, China’s proactive approach and large-scale infrastructure projects give it a competitive edge. As China’s influence grows in developing countries, particularly in the EV sector, it signals a potential shift in global trade dynamics and political alliances in the future.
China’s aggressive expansion in the global electric vehicle (EV) market demonstrates its strategic focus on emerging economies, especially as developed nations impose tariffs and restrictions. By establishing strong market presence in regions like Southeast Asia, Latin America, and Africa, Chinese EV companies are not only filling the gap left by trade barriers but are also fostering long-term relationships through infrastructure development and green energy initiatives. As developing countries welcome China’s investments in EV technology and infrastructure, the global landscape could shift significantly in the coming years, with many nations potentially aligning more closely with China. While the U.S. and other Western countries are taking steps to strengthen their presence in these markets, China’s head start and comprehensive approach suggest it will remain a dominant force in the global EV sector.
Washington, however, is not sitting back. At the U.S.-Africa Leaders Summit in 2022, the United States committed to $55 billion in pledges over three years that included investments in renewable energy infrastructure, clean energy and efforts to mitigate climate change.
Berg said geopolitics also is a motivating factor in Beijing's push into developing countries in South America.
"They are in their geopolitical competition with [the United States], engaging in reciprocity ... showing that they can be extremely active in some ways and especially in the economic domain in our neighborhood," he said.
Uploaded files:
