The US is the leading destination market for greenfield automotive FDI, while Germany is the top source market. GlobalData’s automotive foreign direct investment (FDI) report highlights the current trends in automotive foreign investments. Buy the report here.
Between 2019 and 2022, the automotive sector was the eleventh largest FDI sector in terms of the number of greenfield investments. The automotive sector accounts for 4.1% of global greenfield FDI projects.
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.
Combined, the top ten destination countries account for 62.1% of total automotive FDI projects.
The leading destination country for automotive FDI is the US. Germany, Mexico and India are also popular automotive investment hubs.
According to GlobalData’s FDI Projects database, Japan-based companies were the leading source of greenfield automotive investments into the US.
With respect to outbound FDI, Germany was the leading automotive source market. Germany-based companies held a 20.9% share of total outbound automotive FDI projects. The US, Japan, China and France are also top source markets for automotive FDI.
To further understand global automotive foreign direct investment trends, buy the report here.