China’s growing influence in the global automotive industry is partly due to strategic acquisitions of well-known international car brands. These purchases have allowed Chinese automakers to access advanced technology, design expertise, and overseas markets. Below are some of the most notable car brands that China has acquired or taken control of in recent years.
1. Volvo Cars – Acquired by Geely (2010)
In 2010, Zhejiang Geely Holding Group purchased Volvo Cars from Ford for $1.8 billion. Since then, Volvo has maintained its Swedish identity while benefiting from Geely’s investment in electric vehicle development and global sales growth.
2. MG (Morris Garages) – Acquired by SAIC Motor (2005)
After the collapse of MG Rover, SAIC Motor acquired the rights to the MG brand in 2005. Today, SAIC produces and exports MG vehicles worldwide, especially in the UK, India, and Australia.
3. Smart – Joint Venture with Geely and Mercedes-Benz (2019)
In 2019, Geely and Daimler (Mercedes-Benz) formed a joint venture to develop and produce the next-generation Smart electric vehicles, shifting production to China. The new Smart models are built in Hangzhou and sold globally.
4. Lotus – Majority Stake Acquired by Geely (2017)
In 2017, Geely took a majority stake in Lotus, the British sports car manufacturer. This move helped fund Lotus’s transition to electrification and led to the development of performance EVs like the Lotus Eletre.
5. Proton – Minority Stake Acquired by Geely (2017)
In 2017, Geely acquired a 49.9% stake in Malaysia’s national carmaker, Proton, strengthening its presence in Southeast Asia. Geely also gained full control over Lotus Engineering Malaysia, which plays a role in developing future Proton models.
Frequently Asked Questions (FAQs)
Q1: Has China bought any German car brands?
Yes, China has invested in or acquired parts of several German-linked brands, including Smart (in partnership with Mercedes-Benz) and Volvo (previously owned by Ford Germany).
Q2: Did China buy Toyota or Honda?
No, China has not acquired Toyota or Honda. These remain Japanese-owned, though they operate joint ventures in China with local partners.
Q3: Why does China buy foreign car brands?
Acquiring foreign brands helps Chinese automakers gain access to advanced technology, established global distribution networks, and enhanced brand credibility, particularly in electric and luxury segments.
Conclusion
China has acquired or taken significant stakes in several international car brands, including Volvo, MG, Smart, Lotus, and Proton. These strategic moves have enabled Chinese automakers to strengthen their global presence and accelerate innovation in areas like electric mobility and performance engineering.