China’s BYD will build new factories in Europe for a bigger market share, as the world’s largest electric vehicle (EV) maker faces fiscal support pullback at home and rising trade barriers overseas, according to an executive.

China’s hybrid car exports to the European Union tripled in September from a year earlier, with shipments expected to remain elevated before an import cap agreed during recent trade talks takes effect.

The Communist Party’s flagship newspaper has urged the public not to underestimate China’s technological achievements after Tesla’s “flying car” demonstration sparked concern in some quarters that the country may be falling behind in the global auto race.

Chinese battery giant Contemporary Amperex Technology Limited (CATL) extended its stock price rout after recording a surprise slowdown in third-quarter net profits, as analysts warned the company could be hit by slowing demand from China’s electric car industry next year.

China has granted new autonomous-driving permission to electric vehicle (EV) maker Xpeng and a mainland joint venture of Volkswagen, intensifying the commercialisation race between China’s autonomous driving firms and US company Tesla.

Tesla has agreed a deal to integrate Chinese fintech giant Ant Group’s Alipay digital payment software into its vehicles in China, as Elon Musk’s firm steps up efforts to offer localised smart features amid intense competition in the Chinese market.

While Washington’s efforts to block Chinese electric vehicles (EVs) were originally intended to protect its domestic automotive industry, they have sparked concerns the strategy is hurting America’s carmaking competitiveness.