A worker works at the assembly workshop of automaker SAIC Motor's Lingang base in Shanghai, east China, April 23, 2022. (Xinhua/Chen Jianli)
BEIJING, July 7 (Xinhua) -- Chinese auto makers including Guangzhou Automobile Group (GAC, 601238.SH), Saic Motor Corporation (SAIC, 600104.SH), and BYD Company Limited (BYD, 002594.SZ) recently announced their plans to build overseas factories, amid efforts to speed up their brand globalization course, Securities Daily reported.
GAC's electric vehicle marque Aion on June 28 signed a memorandum of understanding (MoU) for business cooperation with Thai distributor Gold Integrate. According to the MoU, Aion's headquarters in Southeast Asia will be established in Thailand within this year. Preparations for production of localized vehicles are under way.
SAIC is working on the site selection for the building of its first plant in Europe to produce electric vehicles, after its sales on the continent jumped, Yu De, SAIC's general manager of international business department said on Tuesday.
Last year, SAIC sold more than 100,000 vehicles in the European market. With the sales increase, establishing a factory for localized production has become a priority on the company's agenda, said Yu, also noting that sales of vehicles under SAIC's brand MG in Europe reached 115,000 units in the first half, surging 143 percent year on year.
Yu estimated that the auto company is expected to achieve sales of over 200,000 units of vehicles in Europe this year.
Also on Tuesday, BYD announced its plan to establish a production base in the Brazilian state of Bahia. The complex, involving a total investment of three billion reais (about 609.73 million U.S. dollars), will comprise three plants for the manufacturing of automobiles, chassis, and batteries.
Establishing factories overseas can help Chinese auto enterprises who have seen certain sales in local markets reduce costs, operate in a full industrial chain and provided more localized branded products, said Shi Yebin, researcher with Zhongding Research Institute. (Edited by Su Dan with Xinhua Silk Road, sudan@xinhua.org)
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