Li Hui Authors

Chinese Outbound Investment in Auto: Stop! Wait! Go!

October 23, 2014

A look at how Chinese outbound investment in auto is rising and how marquee brands like Volvo Cars and Manganese Bronze now belong to Chinese companies.

Last week, we put together an infographic which showed how Chinese real estate companies are buying property in the west. This week, we take a look at China’s outbound investment in the automotive sector.

China’s auto industry has been growing at a consistent pace in the past few years. Despite being in a market where well-established auto brands like the Big Three German companies—Audi, Mercedes-Benz and BMW—dominate, Chinese carmakers, though much smaller and less known, have still managed to make their presence felt on the international stage. According to the Ministry of Commerce, in 2005, China exported 32,000 ready-to-use vehicles in total. This figure zoomed to 948,000 by the end of 2013.

This year, six Chinese automakers squeezed their way into the Fortune 500 list. The list includes Zhejiang Geely, which surprised everyone when it bought the Swedish auto manufacturer Volvo Cars from Ford Motor Company for a sum of $1.5 billion. Geely also made a big splash in the UK in 2013, when it bought the iconic London black cab manufacturer Manganese Bronze for $17.44 million. Similarly Nanjing Automobile, little known outside of China, bought key assets from British manufacturer MG Rover, while Dongfeng Motor rescued ailing French carmaker Peugeot Citroen by buying a 14% stake.

Chinese investors are also intrigued by the niche electronic vehicle sector. For example, one of China’s biggest auto manufacturers, Wanxiang Group, bought hybrid carmaker Fisker for $149.2 million.

See the infographic below to learn more about Chinese outbound investment in the auto industry.

auto

Enjoying what you’re reading?

Sign up to our monthly newsletter to get more China insights delivered to your inbox.

Our Programs

The Biotech Innovation Program

Global Unicorn Program Series

This program equips CEOs and founders in the life sciences and biotechnology industry with the essential knowledge and connections needed to thrive in this rapidly evolving sector.

LocationUniversity of California, San Diego, USA

DateSeptember 9-13, 2024

LanguageEnglish

Learn more

CKGSB-ESMT Global Unicorn Program in Deep Tech

Global Unicorn Program Series

The program will provide practical business strategies to grow, scale, globalize, and potentially exit deep tech ventures and will touch upon the latest insights on deep tech advancements, such as AI, cutting-edge computing, and cybersecurity innovation.

LocationBerlin

DateOctober 28-31, 2024

LanguageEnglish

Learn more

Global Unicorn Program: Scaling for Success in the Age of AI

Global Unicorn Program Series

In collaboration with the Stanford Center for Professional Development (SCPD), this CKGSB program equips entrepreneurs, intrapreneurs and key stakeholders with the tools, insights, and skills necessary to lead a new generation of unicorn companies.

LocationStanford University Campus, California, United States

DateDec 09 - 13, 2024

LanguageEnglish

Learn more

Emerging Tech Management Week: Silicon Valley

This program offers insights into emerging technology developments and the skills required to innovate, grow, and transform your business strategy.

LocationUniversity of California, Berkeley, USA

DateNovember 3-8, 2024

LanguageEnglish

Learn more