October 25, 2024

Chinese EV maker GAC to invest in Europe even after report that Beijing is against plan

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State-owned carmaker GAC Group plans to set up factories in Europe in an effort to mitigate damage caused by the tariffs imposed on Chinese-made electric vehicles (EVs).

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Wei Haigang, the general manager of GAC International, said expansion into Europe is an important part of the Guangzhou-based company’s growth strategy, adding that it expects to bring a large number of electric cars to the European market next year.

“We are reviewing the plans to localise production [in Europe],” he said in Hong Kong on Friday. “A final decision will be made if there is substantial demand.”

GAC International is a subsidiary that focuses on business outside China.

Wei’s remarks came after Bloomberg News reported that authorities in Beijing were pressuring mainland carmakers to refrain from investing in European Union (EU) countries while negotiations over EU tariffs were ongoing, citing unidentified people familiar with the matter.

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The report added that the government request was not a mandatory order.

Wei said he was not aware of such a directive from Beijing and GAC is adamant about tapping into the European market – even with the additional tariffs of up to 35.3 per cent that are applied to Chinese-made EVs.

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