Hong Kong pushes EV factory deals

Hong Kong is increasing its efforts to attract electric vehicle (EV) manufacturing lines and assembly plants as part of a broader strategy to diversify its economy and regain momentum after years of stagnation.

Government officials and industry sources say serious talks are underway with major Chinese automakers to build EV assembly facilities in the territory.

Hong Kong’s government explores new industries to stimulate economic growth 

Hong Kong’s City officials are considering establishing a suitable base specifically for electric vehicle assembly. This complex field requires the attention of skilled workers. Reports indicate that the region is considering potential locations in the New Territories area of Hong Kong, which is adjacent to the mainland Chinese border.

Mainland EV firms have already increased their presence in the city. Neta Auto set up an R&D centre, while GAC Motor’s Aion brand has expanded showrooms. Industry experts suggest Hong Kong could serve as a final assembly and export base, particularly targeting Southeast Asia and European markets.

According to government officials and industry sources, the city has opened talks with major Chinese automakers, including state-owned FAW Group, over potential EV assembly plants in the New Territories. The initiative falls under Hong Kong’s Innovation, Technology and Industry (I&T) blueprint, which identifies advanced manufacturing as a strategic priority.

In a statement, the government department highlighted that the region is dedicated to supporting the growth of key sectors in the industry, including high-tech manufacturing, as part of its 2022 development plan. On the other hand, FAW declined to respond to the request for comment.

Notably, Hong Kong’s economic status has been stagnant due to political instability, COVID lockdowns, and significant market declines in the real estate sector. To address this, the region’s government has focused on new industries to enhance economic growth.

With global trade risks, policymakers have initiated extreme measures like reducing the number of civil servants by thousands and increasing taxes to protect their economy and stabilize the budget.

Hong Kong positions itself as a hub for EV manufacturers

There is a growing trend of developing new industries in the world. Several economies have responded by rushing to take advantage of the situation and position themselves as leading manufacturing centers to attract investments and create job opportunities for their people. A good example is Hong Kong; however, expensive land and costly labor in the region challenge this goal.

Apart from this, another significant challenge is that since the region supports the Chinese EV industry, the sector’s challenges, such as too many factories operating at only half their capacity and the stiff price competition, have triggered government intervention.

Despite these challenges, several firms throughout China’s EV supply chain, from battery manufacturers to parts distributors, have chosen Hong Kong as a suitable region to carry out their operations, mainly due to its financial system for international development.

For instance, Contemporary Amperex Technology Co. Ltd., one of the leading global battery producers, has opened its international headquarters in the region. Additionally, the firm launched its shares on the local stock exchange in May, marking the global biggest listing in 2025.

Other firms that have also shown interest in the region, with significant investments in the construction of facilities, include self-driving technology firms like Black Sesame Technologies and Beijing Horizon Robotics Technology R&D Co. 

Sign up to Bybit and start trading with $30,050 in welcome gifts