1、Transition from “Sales Volume” to “Brand Building”

In the initial phase of their global expansion, Chinese automakers utilized competitive pricing and strong product value to rapidly enter international markets. “Affordable and reliable” were frequently used descriptors for vehicles from China. As exports grew, the significance of brand development became increasingly evident. These manufacturers recognized that brand strength is crucial for sustaining long-term competitiveness.

In the first half of 2025, many Chinese automakers substantially increased their investments in overseas brand development. Through advertising campaigns in Europe, the Middle East, and Latin America, a notable rise in the establishment of brand experience centers, and efforts in localized technology and product adaptation with regional partners, Chinese automakers shifted their focus from purely “how many vehicles are sold” to building a reputation that emphasizes “what kind of vehicles they offer.”

For instance, in the Middle East, BYD capitalized on its strategic collaboration with Al-Futtaim to position itself as an “innovator in commercial vehicle technology.” At the same time, BYD expanded its local footprint with premium sub-brands such as Denza, Fangchengbao, and Yangwang, creating a diversified brand portfolio that covers commercial and passenger vehicles, as well as mass-market and luxury segments.

In Mexico, the Jetour brand, part of Chery Holding Group, recently entered a new phase of development. By leveraging the group’s internal resources, it introduced the new “Soueast” business unit, aimed specifically at style-conscious urban young consumers. Its product range includes hybrid, gasoline-powered, and premium vehicles, highlighting “comfort and advanced technology” as key selling points.

Even more significant is Chery’s approach to channels and supply chain development. The Soueast brand plans to operate 40 showrooms by the end of the year, with an additional 10 slated for 2026, and is also preparing to establish a regional parts distribution center in Latin America. The “Localized Research Center” initiative, as mentioned by company executives, addresses a fundamental challenge: gaining a deep understanding of and fulfilling local consumer needs. This reflects a broader shift among Chinese automakers from merely exporting products to building an integrated operational ecosystem.

Geely, for example, has consistently emphasized “innovation” and “high quality” in its overseas brand campaigns. In European and North American markets, Geely has cultivated a premium image through its association with the Volvo brand, an identity that also enhances the perception of its own-brand vehicles.

These efforts illustrate that Chinese automakers are no longer focused solely on sales volume in their international expansion but are actively working to reshape how global consumers perceive their brands. A successful brand transformation will determine whether vehicles from China can advance from competing on volume to competing on value.

2.Multi-Path Global Expansion: Complete Vehicle Exports, CKD Production, and Local Plant Establishment

Confronted with diverse international markets, Chinese automakers have adopted a flexible and multi-faceted approach to global growth.

Overseas strategies employed by these manufacturers can be classified according to production and distribution models, resulting in four primary types: “CBU export + general agent model,” “CBU export + direct sales/agency model,” “local manufacturing + dealer model,” and “local manufacturing + general agent model.”

In medium to large markets such as Spain and Russia, most automakers implement the “local manufacturing + dealer model.” Even in markets like Mexico, which currently relies on complete vehicle imports, a transition toward local manufacturing combined with regional distribution is anticipated in the future.

In regions like the Middle East, where market scale may exceed the automaker's capacity for direct management, the “CBU export + general agent model” is commonly used. Policy regulations in these areas often necessitate partnerships with locally licensed entities. For instance, partnering with a large integrated company can provide comprehensive support to general agents in a cost-effective and efficient manner, facilitating expansion across the entire regional market.

In mature markets such as Norway, Sweden, and Denmark, new energy vehicle companies frequently employ the “CBU export + direct sales/agency model.” Consumers in these regions emphasize brand identity and service experience, making CBU exports an effective method for initial market exploration.

In countries including Brazil, Malaysia, Pakistan, Egypt, Thailand, and Turkey, Chinese automakers typically adopt a “local manufacturing + general agent” model. These markets often have strong industrial policy requirements, where local partners help meet compliance and operational needs. The general agent model also helps reduce management complexity.

Overall, complete vehicle exports remain the dominant approach currently, while the CKD/SKD model (parts exports with local assembly) is growing rapidly. Local production represents a long-term strategic direction. This diversified approach enhances the resilience of China’s automotive exports in the face of international policy changes and market fluctuations.

3.Value Chain Extension: From Vehicle Sales to Supply Chain Expansion

Differing from the historical export approaches of Japanese and Korean automakers, the international growth of China’s automotive sector extends beyond simply selling complete vehicles. A deeper trend involves the globalization of its supply chain, including batteries and components.

To better support the export of finished vehicles, Chinese auto parts suppliers are also establishing a presence overseas. For instance, CATL and EVE Energy have set up production facilities in Hungary, Junlian Zhixing has built a factory in Poland, and Desay SV has established a manufacturing base in Spain—enabling localized support and supply.

Beyond supporting production, technology cooperation represents another important pathway for Chinese auto parts companies, particularly battery manufacturers, expanding abroad. Examples include CATL’s technology licensing agreement with Ford for its North American battery plant, and Gotion High-Tech’s provision of production line design and process guidance for Volkswagen’s PowerCo battery facility. Through such technology licensing partnerships, Chinese suppliers are beginning to facilitate the transfer of standards and know-how.

Another form of international expansion is ecosystem collaboration. A notable example is the cooperation between Geely and Renault in the powertrain sector. The two companies established a joint venture named Horse, which produces engines, transmissions, and hybrid systems for automakers including Volvo, Renault, Nissan, and Mercedes-Benz.

From supporting production and exporting technology to co-building ecosystems, Chinese auto parts companies are strengthening global supply capabilities, technical service expertise, and collaborative networks. These efforts are supporting Chinese automakers in pursuing more systematic and integrated global growth.