Auto trade patterns challenge ‘build where you sell’ mantra

‘Build where you sell’ is one of the mantras of modern-day automotive manufacturing, and this is primarily how the industry is organised. There are some significant exceptions: large BMW and Mercedes SUVs sold in Europe come from the US, whole Audi Q5s come from Mexico, and Japanese pick-ups sold in Europe tend to come from Thailand or South Africa. Low volume Japanese models sold in Europe and the US still come from Japan, but the Japanese, and indeed the Korean, OEMs tend to make what they sell in Europe or North America in those regions. Ultimately, the same will apply to the Chinese in Europe once they complete their planned or rumoured vehicle plants in the region. For now, Chinese models are imported. The country is in fact the world’s largest vehicle exporter, sending out nearly 2.2 million units in H1 2024.