“Except in markets that impose unreasonably high tariffs [on Chinese-made EVs]”Spotlight designs and builds cars for customers around the world,” Zhang said on the sidelines of an investment promotion event in Shanghai. “Our vision is to build cars that meet the demand of people around the world.”
Spotlight was founded in 2019. BMW and Great Wall, China’s largest sport-utility vehicle maker, each contributed equally to a total investment of 5.1 billion yuan ($704.7 million). The company has a factory in Zhangjiagang city, Jiangsu province, capable of assembling 160,000 vehicles annually, and a research and development center in Shanghai that employs around 300 engineers.
Concerns about overcapacity have prompted mainland-based electric vehicle makers to increase sales abroad, said Qian Kang, a Zhejiang-based entrepreneur who owns auto components companies.
“Previously, foreign automakers’ Chinese ventures only focused on the mainland Chinese market because it was large enough to accommodate their production capacity,” he said. However, “China’s strong electric vehicle supply chain and design clout in the electric sector have inspired global brands to look beyond the local market.”
Zhang did not provide details on the new models Spotlight is developing in Shanghai, saying three models, including two Mini battery-powered cars, are expected to be produced at the Zhangjiagang factory soon.
BMW has decided to move production of electric mini-cars from the UK to its joint venture with Great Wall in 2022 to help the brand raise its profile and attract young buyers. At the time, it was said that an electric Aceman would be one of the two mini models to be assembled in Zhangjiagang.
China is the world’s largest market for electric vehicles. Currently, six out of ten new electric vehicles worldwide are sold on the mainland.
According to the China Passenger Car Association, electric vehicle manufacturers sold 8.9 million units in China last year, up 37 percent year-on-year. However, revenue growth could slow to 20 percent this year, according to a November forecast from Fitch Ratings.
In the United States, the Biden administration is also considering restrictions on the import of Chinese electric vehicles, which Commerce Secretary Gina Raimondo said pose a risk to U.S. citizens because they collect “vast amounts of information about a driver.”
However, analysts believe any restrictions on Chinese exports of electric vehicles will not stop major companies from advancing their global ambitions.