China's Ministry of Commerce has advised local carmakers to be cautious with overseas investments, particularly in India, Russia, and Turkey, as part of an effort to mitigate risks tied to geopolitical issues and economic climate.

In a meeting held in early July, the ministry emphasized avoiding investments in India, backed by a central government directive, and discouraged ventures into Russia and Turkey.

There were also cautions regarding factory investments in Europe and Thailand.

The ministry suggested using overseas facilities for final vehicle assembly with knocked-down components, highlighting the importance of maintaining core electric vehicle technologies domestically.

This advice comes amid growing export strategies by Chinese automakers due to slowing domestic sales and market saturation.

China's state-owned SAIC Motor Corp has faced challenges in India, whereas brands like Chery are exploring expansion in Russia.

In Europe, companies like Geely and Leapmotor are considering local production through joint ventures and partnerships.

These strategic moves are influenced by an ongoing price war and higher EV tariffs in major auto markets.