Chinese Market Q1 2022 (2): Major non-Chinese OEMs restructure joint ventures and localize R&D

Audi launches NEV project, Honda announces EV brand, Tesla opens design center in Beijing



Audi electric vehicle plant scheduled to be completed by the end of 2024 (Source: Audi)

 The first quarter of 2022 (January-March) was marked by a flurry of restructuring activity among non-Chinese joint ventures. BMW increased its stake in BMW Brilliance, and the Stellantis Group also increased its stake in GAC FCA. Dongfeng Nissan has taken control of Dongfeng Infiniti. Hyundai and BAIC increased their capital to Beijing Hyundai Motor Co., Ltd., and Dongfeng Yueda Kia changed its name to Kia Motors Co., Ltd. (Kia Motors). In addition, non-Chinese OEMs are strengthening their R&D and design capabilities in China. VW has begun construction of an R&D test site in Anhui Province, Mercedes-Benz has established an R&D center in Shanghai, and Ford has started operating a design center in Shanghai. Also, Tesla will establish a design center in Beijing.

 On the policy side, several departments, including the State Council, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Transport, announced content covering the so-called CASE (connected, autonomous, shared, electric) technological areas such as NEVs, intelligent connected cars, and smart transportation. Note that in March 2022, Premier Keqiang LI stated in a government activities report that the government would continue to support the purchase of NEVs.

 This report presents trends among major non-Chinese automakers in China in the first quarter of 2022, as well as some of the major policies relevant to the automotive industry.


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