China-made exports of Ford, Tesla, BMW set to surge as Beijing opens auto industry, government says

New report reveals exports of foreign-branded cars assembled in China are expected to rise as the domestic market matures and Beijing opens auto industry

China has introduced reforms in the sector, including permitting overseas firms to wholly own local ventures and use the country as a global export base

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China is the world’s largest manufacturer and consumer market for cars. Photo: Xinhua

Published: 6:38pm, 3 Jan 2020Updated: 8:49pm, 17 Feb 2020

Beijing is aiming to boost exports of China-made foreign vehicles in coming years as domestic car sales slump and restrictions on overseas firms are loosened, according to a government report.

Manufacturers like Ford Motors, GM, BMW and Honda are expected to expand manufacturing in China as Beijing allows foreign firms to have wholly owned local ventures that will increasingly serve the global market, said the report from the Ministry of Commerce and China Automotive Technology and Research Centre.

The analysis, which serves as a reference for industrial policymaking, sheds new light on the central government’s thinking about an industry that provides one in six jobs in China.

The traditional “market for technology” strategy, under which China attracted foreign car brands to make vehicles for the local market, is giving way to a new approach of permitting overseas firms to own factories in China and use the country as a production base for the rest of the world.

Car sales in China slipped 5.4 per cent in November, marking a 17th consecutive monthly decline, according to the China Association of Automobile Manufacturers (CAMM).