South America, Europe

Chery, a Fortune 500 company and China's largest auto exporter, labels its overseas strategy as "in somewhere, for somewhere, be somewhere", developing and producing cars locally for different markets.

SAIC Motor, another major exporter and partner of Volkswagen and GM, unveiled a "Glocal" strategy, vowing to deepen localized ecosystem development while elevating the brand into a globally recognized one.

BYD's expansion in Brazil offers a clear example of deep localization.

The company's factory in Camacari of Bahia state has produced around 25,000 electric and hybrid vehicles since operations began in October 2025.

According to Alexandre Baldy, head of BYD's Brazil business, the company plans to ensure that 50 percent of components produced at the plant are locally manufactured or sourced by the end of 2026.

Stamping, welding and painting workshops are nearing completion, and annual capacity is expected to increase from 150,000 units in 2026 to 300,000 units.

The higher localization ratio will not only help BYD meet regulatory requirements but also enable it to export Brazil-made vehicles to countries in Mercosur, the regional economic organization, as early as this year.

Bahia's Secretary of Economic Development Angelo Almeida said BYD's arrival represents the rebirth of Camacari's automotive hub, generating employment, income and innovation.

"The project will create a value chain of maintenance, logistics, food and security. It is projected to bring in 10,000 direct jobs alone,"Almeida said.

He said BYD may push the state's industry toward green technology production by leveraging local research.

"BYD has already expressed its intention to establish an R&D center here, which could consolidate the state as a reference hub for electric mobility, automotive software and electric propulsion system development," Almeida said.

Europe is one of the most important overseas markets for Chinese automakers, but also one of the most demanding.

Rather than relying solely on greenfield investments, Chinese automakers are increasingly adopting flexible, asset-efficient strategies.

XPeng has worked with Magna International to produce its G6 and G9 models at Magna's Graz plant in Austria since the third quarter of 2025. The plant has been producing Mercedes-Benz's iconic G-wagon.

In January, the company announced that trial production of its 2026 P7+ model had been completed at the same facility, laying the groundwork for its European launch in the first half of the year.

GAC Group has also partnered with Magna as well, with its AION V entering production at the Graz plant in November 2025.

Leapmotor, leveraging its joint venture with Stellantis, plans to begin localized production at Stellantis' Zaragoza plant in Spain in the third quarter of 2026.

BYD, meanwhile, is pursuing a longer-term European manufacturing strategy.

After establishing an electric bus plant in Hungary in 2016, the company launched an expansion project in 2025 to increase annual production capacity for electric buses and trucks from 400 to 1,250 units.

It is also investing 4 billion euros ($4.62 billion) in a passenger vehicle plant in the country — its first such facility in Europe. Trial production has started, with mass manufacturing slated to begin in the second quarter of 2026.