The global electric vehicle (EV) market is witnessing a significant shift as Chinese automakers expand their footprint into the Global South. This expansion is not just about selling vehicles but about embedding entire manufacturing ecosystems, from battery production to supply chains, in developing nations. The impact of this shift is profound, reshaping industrial landscapes and creating new opportunities for local economies.
The narrative that China is crushing fragile industries in developing nations is a misconception. Instead, Chinese automakers are partnering with local entities to build robust manufacturing capabilities. This collaboration is fostering industrial growth and creating jobs, ultimately benefiting the local economies.
Chinese Automakers Dominate EV Expansion
Chinese automakers are at the forefront of the EV revolution, with significant investments in manufacturing and battery production across Africa, Asia, and South America. The African Development Bank Group (ADB) has approved a $114 million loan for Chinese battery maker Gotion High-Tech to build Morocco’s first integrated lithium iron phosphate (LFP) battery gigafactory. This investment is a game-changer for local battery manufacturing and lithium processing in countries like Zimbabwe and the Democratic Republic of the Congo (DRC).
The Bingo E2, a purpose-built electric vehicle designed for taxi drivers by an American company, has launched in Kenya. The mini-EV comes with battery-swapping capabilities and was designed in the U.S. and engineered in China. This innovation addresses range anxiety for commercial drivers and could catalyze local battery assembly growth.
Local Partnerships and Industrial Development
In Asia, a Thai auto parts giant has stated that partnering with Chinese EV makers is inevitable for staying competitive. Chinese manufacturers have pulled ahead with lower production costs and more advanced EV technology, making them increasingly difficult to compete with. This trend reflects a broader global shift as Chinese carmakers rapidly expand into markets once led by established rivals.
Kazakhstan’s Astana Group has announced an agreement with Chinese EV maker BYD to locally assemble passenger vehicles starting in. The Group also plans to introduce a new bus brand developed jointly with Kazakh and Chinese engineers, with production of electric buses expected in March. This strategy shows that manufacturing Chinese EVs is becoming part of a broader industrial development model, combining vehicle assembly, local brands, engineering partnerships, workforce training, and charging infrastructure.
BYD’s Global Expansion
BYD, a leading Chinese EV manufacturer, has made significant strides in South America. BYD’s Brazilian plant hit the 100,000th EV milestone, with exports to neighboring countries expected to grow as orders keep flowing in. BYD is set to export mass vehicle orders from its Brazilian factory to Argentina and Mexico, with orders for 50,000 cars from Argentina and 50,000 cars from Mexico already received.
In Argentina, Chinese automakers continued to dominate the electric vehicle market. By June, eight of the 10 best-selling EV models were Chinese brands. BYD led by a wide margin with 604 vehicles sold, followed by BAIC with 106. This dominance creates an opportunity for local manufacturers to partner with Chinese automakers to retain more value at home.
The latest developments point to a common shift across the Global South countries where the biggest opportunity is no longer simply selling Chinese EVs but embedding Chinese manufacturing, battery production, engineering, and supply chains into local economies. Countries that pair Chinese technology with local battery processing, vehicle assembly, workforce training, and supplier development are more likely to capture long-term industrial value, while those that remain focused on importing finished vehicles risk leaving much of the economic benefit abroad.
