1. The US is the leading destination market for greenfield automotive FDI, while Germany is the top source market.
2. Between 2019 and 2023, the automotive sector was the eleventh largest FDI sector in terms of the number of greenfield investments. The automotive sector accounts for 4% of global greenfield FDI projects.
3. Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI, such as mergers and acquisitions, are not included as part of this definition.
4. Combined, the top ten destination countries account for 62.7% of total automotive FDI projects.
5. The leading destination country for automotive FDI is the US. Mexico, Germany and India are also popular automotive investment hubs.
6. According to GlobalData’s FDI Projects database, Japan-based companies were the leading source of greenfield automotive investments into the US.
7. With respect to outbound FDI, Germany was the leading automotive source market. Germany-based companies held a 20.3% share of total outbound automotive FDI projects. The US, Japan, China and South Korea are also top source markets for automotive FDI.
MOST ACTIVE FDI COMPANIES IN THE AUTOMOTIVE INDUSTRY
1. Porsche Automobil Holding is the automotive company most prolific at making international expansions, followed by Toyota Motor and Tesla.
2. Porsche Automobil Holding has been the most active automotive greenfield investor between Q1 2019 and Q2 2024, according to GlobalData’s FDI Projects Database. The parent company has been actively investing through several of its subsidiaries/company divisions.
3. Greenfield foreign direct investment is when a company invests abroad to establish a new physical presence or expand an existing operation. Greenfield investments create jobs and/or involve a capital investment into the foreign location. Other forms of FDI such as mergers and acquisitions are not included as part of this definition.
4. The majority of Porsche Automobil Holding investments were in the passenger cars subsector. In fact, 33.3% of its total foreign investments were in this subsector. It also created projects across a further 29 subsectors.
5. By business function, most (36.2%) of Porsche Automobil Holding projects were related to manufacturing.
6. R&D and MRO (maintenance & repair operations) were the next most popular operations undertaken by Porsche Automobil Holding.
7. The company has been active across eight world regions, mainly focused on Asia which received 25.1% of the company’s greenfield investments between Q1 2019 and Q2 2024.
8. Its top three destination countries (by number of greenfield FDI projects) were the US, India and China. Combined these three countries account for 41.3% of its total number of automotive investments.
9. Porsche Automobil Holding created more FDI projects in 2020 compared to any other year between Q1 2019 and Q2 2024.
10. Other leading FDI project generators in the automotive industry include Toyota Motor, Tesla, Mercedes-Benz Group and Zhejiang Geely Holding Group.
11. Germany is the leading source market for outbound automotive greenfield FDI projects. The country accounts for 20% of total outbound automotive investment projects. There have been 142 unique parent companies from Germany that have announced automotive FDI projects between between Q1 2019 and Q2 2024.
TURKEY EXPECTS FDI TO REACH $12-14 BLN THIS YEAR, AUTOMOTIVE INVESTMENTS EYED
1. Turkey expects foreign direct investment (FDI) to rise to $12-14 billion this year from around $10 billion in 2023, the head of the presidential investment office said in an interview, with automotive and data centre investments on the agenda.
2. Interest from foreign investors had increased after Turkey's removal from financial crime watchdog FATF's "grey list" and upgrades in the country's credit rating.
3. Chinese companies could make two new automotive factory investments after electric car manufacturer BYD unveiled a $1 billion plant investment in Turkey in July. A data center investment could also be made by the end of the year,.
4. FDI in the first five months of this year was $4 billion.
5. Turkey received an average 0.9% of global FDI in the 20-year period to 2023 and wants to increase this to 1.5% in the medium term, or some $15-20 billion per year by 2028.
6. The industry ministry has unveiled a grant and incentive package with a budget of $5 billion for factory investments with a capacity of at least 150,000 electric or hybrid vehicles.
Source:
https://www.investmentmonitor.ai/data-insights/fdi-role-automotive-industry/?utm_source=&utm_medium=7-112591&utm_campaign=&cf-view
https://www.investmentmonitor.ai/data-insights/active-fdi-companies-in-the-automotive-industry/?cf-view
https://www.reuters.com/world/middle-east/turkey-expects-fdi-reach-12-14-bln-this-year-automotive-investments-eyed-2024-08-05/
