HEFEI, China — Chinese automaker Chery in May launched a new energy vehicle (NEV) with a driving range exceeding 2,000 kilometers, featuring some tires supplied by German tire manufacturer Continental AG.
Since 2019, the two companies have worked in cooperation to explore the NEV market. Their partnership exemplifies the growing integration between Chinese and foreign companies in the NEV industry, encompassing production cooperation, stake acquisitions, and market expansion both domestically and internationally.
These closer partnerships come as an increasing number of foreign companies in the industry seek to capitalize on the booming market.
China has been the world's top NEV producer and seller for nine consecutive years. Data from the China Association of Automobile Manufacturers shows that in 2023, China's production and sales of NEVs exceeded 9.587 million units and 9.495 million units, respectively, both accounting for over 60 percent of the global total.
A huge market, a complete industrial chain, continuous innovation, and supportive policies have driven Chinese and international partners to strengthen cooperation and share opportunities in the NEV industry.
"The development of the NEV industry features innovation across industries and fields, as well as more open and inclusive international cooperation," said Tao Min, head of operation at Continental Tires (China) Co. Ltd., the first wholly-owned tire production base of Continental AG in China.
China remains the most promising market for the global automotive industry, especially in the NEV market, Tao said.
Continental Tires' partnerships extend to more than 10 Chinese automakers, including BYD and NIO. Its NEV tire output for this year is projected to grow by over 30 percent compared to 2023.
The NEVs of Chery, which has about 230 foreign suppliers, have gained popularity both at home and abroad. During the first five months of this year, its NEV sales hit 135,861 units, up 168.9 percent year on year.
Acknowledging China's burgeoning innovation in NEVs, Volkswagen has established deep ties with Chinese companies, including electric vehicle maker XPENG and Horizon Robotics, an intelligent driving technologies provider.
"Through the partnership with XPENG, we are not only accelerating development times but also boosting efficiency and optimizing cost structures," said Ralf Brandstätter, chairman and CEO of Volkswagen Group China.
He added that the two sides are working closely to combine their strengths to bring smart products onto the road.
Foreign automakers need China's advanced electrification technology to achieve the "in China, for the world" strategy, while Chinese automakers and suppliers need to promote internationalization with foreign companies as a platform, said Gao Debu, a professor at Renmin University of China.
Such deep cooperation is increasingly common in China's NEV sector. BMW has established partnerships with Chinese battery producer CATL and automaker Great Wall Motor.