Emerging Markets Become New Engines for Global Automotive Growth
Against the backdrop of the global automotive industry's transformation towards new energy and intelligent technologies, South America, the Middle East, and Africa, with their strong demand and favorable policies, have become core battlegrounds for Chinese automakers expanding overseas.
Middle East: Accelerated Commercialization of Autonomous Driving and Deepening Cooperation in New Energy
1. Saudi Arabia and the UAE Bet on the Trillion-Dollar Autonomous Driving Market, with Chinese Companies Becoming Key Players
Key Developments: The UAE and Saudi Arabia are leading the way in commercializing Level 4 autonomous driving, creating a global smart transportation testbed.
Abu Dhabi: Baidu Apollo received its first batch of fully driverless commercial operation permits in November 2025, and partnered with AutoGo to deploy its sixth-generation driverless vehicles. It has accumulated over 17 million autonomous driving orders (ranking first globally), with 250,000 fully driverless orders per week. Masdar City has launched closed testing without safety drivers and plans to open eVTOL air taxi routes by 2027.
Saudi Arabia: Partnering with Uber to launch driverless taxi services by 2025; NEOM City aims for 75% autonomous driving for all trips by 2030.
Policy Support: Dubai issues the Gulf region's first Level 4 autonomous driving license. Level 1 autonomous driving regulations clarify the division of accident liability and insurance coverage standards for operators.
Market Impact: Chinese companies such as WeRide and Carrot Express have been among the first to obtain operating licenses, while international brands like Tesla and Lucid are making intensive deployments. The Middle East has become a fiercely contested battleground for the commercialization of autonomous driving technology globally.
2. Saudi Consortium Partners with China's HORWIN for $500 Million to Build Middle Eastern Electric Motorcycle Industry Chain
Cooperation Details: A Saudi consortium has reached a strategic cooperation agreement of over $500 million with Changzhou Haowan New Energy (HORWIN) to build an electric motorcycle production base in Riyadh over the next five years, covering the entire chain from R&D and manufacturing to sales.
Technological Highlights: HORWIN has achieved breakthroughs in three core technologies-automotive-grade charging efficiency (solving the slow charging problem), stable high-speed cruising performance (solving motor overheating and performance degradation), and an integrated cockpit-driver robot architecture (intelligent upgrade). Its products have passed European L3e certification.
Strategic Significance: Responding to Saudi Arabia's "Vision 2030" economic diversification goals, HORWIN had previously reached a $1 billion sales agreement with Africa's Spiro Group, forming an "Africa +Middle East" Dual-Core Layout.
Africa: Chinese Automakers See a Surge in Factory Construction, South Africa and Egypt Become Key Hubs
1. Chery and Great Wall Increase Investment in Localized Production in South Africa, Aiming to Double Regional Sales
Latest Developments: By the end of 2025, Chery and Great Wall successively disclosed their plans for CKD (Completely Knocked Down) assembly plants in South Africa.
Chery: Targeting 39,000 units in South African sales by 2025 (doubling year-on-year), planning to acquire existing local factories, finalizing capacity planning within 3-6 months, and currently ranking fourth in local passenger vehicle sales.
Great Wall: Exploring joint ventures with local companies to produce pickup trucks, planning to increase South African sales by 20% by 2026, focusing on breaking through the barriers to localized parts supply.
Market Background: Data from the South African Association of Automotive Manufacturers (NAAMSA) shows that in October 2025, new car sales in South Africa reached 55,956 units, a year-on-year increase of 16%, setting a new record since 2015. 1. Reaching a ten-year high since [month], benefiting from declining inflation and recovering export demand.
2. Dongfeng Motor enters Egypt with 9 models, aiming for 34% market share for Chinese brands
Market Dynamics: In August 2025, Dongfeng Motor held a launch event in Egypt, introducing 9 models from its three brands: DONGFENG, VOYAH, and MHERO. These models cover four powertrain types: gasoline, pure electric, range-extended, and plug-in hybrid, catering to diverse scenarios such as daily commuting and off-road adventures.
Market Data: Chinese brands' market share in the African automotive market reached 10% in 2024, and AlixPartners predicts it will rise to 34% by 2030. BYD, SAIC, and others have reduced tariffs through assembly of knock-down parts, making economy electric vehicles and pickup trucks the best-selling categories.
South America: Accelerated localization of production leads to explosive growth in Brazil's new energy vehicle market.
1. Chery restarts [project/operation] in Argentina. A 100,000-vehicle capacity factory, deeply rooted in the Latin American market.
Investment Plan: Chery has restarted and is advancing its 2022-disclosed electric vehicle manufacturing plant project in Argentina. Located in Santa Fe Province, the plant has a planned annual capacity of 100,000 vehicles, primarily supplying the local market and surrounding markets such as Brazil and Chile, and meeting South American INMETRO certification standards.
Competitive Landscape: BYD and Great Wall are simultaneously advancing the construction of factories in Brazil and Mexico. By 2025, the combined annual output of Chinese automakers' overseas factories will reach 2.5 million vehicles, forming a coordinated "South America + North America" layout.
2. Brazil's new energy vehicle penetration rate reaches 6.7%, with Chinese brands dominating the market with an 82% market share.
Key Data: In 2024, Brazil's light electric vehicle sales reached 177,000 units, a year-on-year increase of 88.8%, with the market penetration rate rising from 4.1% to 6.7%. Among them, Chinese brand new energy vehicles accounted for as much as 82% of the local electric vehicle market, with BYD Atto 2 becoming a blockbuster model.
Policy Opportunities: Brazil has adjusted its new energy vehicle classification standards (no longer classifying MHEVs as such). Listed as electric vehicles, Argentina has introduced import substitution subsidies to encourage localized production; leveraging its lithium resources, Argentina is promoting the coordinated development of lithium battery industrialization and the new energy vehicle industry.
Key Insights from Three Major Regions' Overseas Expansion:
Localized production becomes the key to breaking the deadlock: South America's INMETRO certification, the Middle East's GCC standards, and Africa's local capacity requirements are forcing companies to shift from "trade exports" to "local manufacturing." Acquiring existing factories or establishing joint ventures can shorten the implementation cycle.
Technology adapts to regional needs: The Middle East focuses on high-end intelligence (autonomous driving, eVTOL), while Africa/South America emphasizes cost-effective new energy vehicles and commercial vehicles, requiring targeted optimization of product durability and scenario adaptability.
Policy ties for resource dividends: Partnering with local conglomerates (such as Saudi Arabia), government projects (such as NEOM Future City), or utilizing mineral resource advantages (such as Argentine lithium mines) can reduce investment risks.
The advantages of the entire industry chain going global are prominent: From complete vehicles and components to charging infrastructure, China's new energy industry ecosystem has formed a closed loop, HORWIN... The technology export and Dongfeng's full-category product layout both confirm this trend.
Source: Beijing News, China Daily, Reference News (February-November 2025 reports); NAAMSA (South African Automobile Manufacturers Association) November 2025 data; China Automobile Dealers Association Passenger Car Association (CPCA) Q1-Q3 2025 export report; AlixPartners "Middle East and Africa Automotive Market Outlook 2030"; Dongfeng Motor Group 2025 Overseas Market Strategy Launch Conference Announcement