Auto Supply Chain: Chery Auto, CEVA Logistics & CMA CGM
CMA CGM, a global transport and logistics company, has signed a Memorandum of Understanding (MoU) with its subsidiary CEVA Logistics and Chinese automaker Chery.
CEVA Logistics, which provides third-party logistics and supply chain solutions, says the MoU sets the foundation for a long-term collaboration aimed at supporting Chery's international development while scaling its global supply chain capabilities.
Chinese carmaker Chery has been aggressively expanding overseas; in the UK alone across its three brands, Chery, Omoda and Jaecoo, the automaker has sold 57,217 vehicles since the start of the year, according to statistics published by the SMMT.
Eric Dessupoiu, Vice President of Finished Vehicle Logistics, CEVA Logistics, says: “As Chery Auto accelerates its international footprint, managing complex, multi-market automotive supply chains becomes a critical differentiator.”
Auto logistics deal
Under the agreement, CMA CGM and CEVA Logistics will support Chery's operations across Europe, Asia-Pacific, Latin America and the Middle East, covering finished vehicles, automotive parts and electric vehicle (EV) batteries.
Amélie Humphreys, General Manager, CMA CGM China, says: “As global automotive supply chains become increasingly complex, strong and reliable transport and logistics partnerships are more important than ever.
“By bringing together CMA CGM's global maritime and logistics network with CEVA Logistics' end-to-end automotive logistics expertise, this three-party collaboration will help Chery Auto strengthen the resilience, efficiency and sustainability of its international operations.
"We are proud to support Chery Auto's continued global growth and to contribute to building more agile, localised and future-ready supply chain solutions.”
Chery auto supply chain
Deloitte has described China's automotive industry as the world's most dynamic and innovative market. While this may be the case, the Chinese auto market is plagued with intense competition and price wars that are driven by oversupply.
As Chery aggressively expands into global markets, including by exploring manufacturing at Nissan's Sunderland plant in the UK and opening up a plant in South Africa (due to start production in 2027), the company will need to shore up its supply chain in a world that is fraught with countless supply chain risks, spanning tariffs in multiple countries and global conflicts.
Chen Chunqing, Executive Vice President of Chery International, says: “By combining CMA CGM's extensive global shipping and logistics capabilities with CEVA Logistics' end-to-end automotive logistics expertise, this three-party partnership is well positioned to enhance local market responsiveness, strengthen supply chain performance and support more resilient international operations.
“Through this collaboration, we believe we can better serve local market needs while jointly fostering robust, localized and future-ready supply chain ecosystems.”
Battery supply chain
Notably, CMA CGM, CEVA Logistics and Chery Auto’s deal covers the supply of EV batteries. As Chery expands overseas and pushes production into other countries, this is a key point to consider.
Chinese brands like Chery are key manufacturers of EVs and the country is key to the global EV battery market, being the world’s leading supplier through Chinese battery companies like CATL.
According to the IEA's Global Supply of EV Batteries Report, China produces three-quarters of all lithium-ion batteries and is home to 70% of production capacity for cathodes and 85% for anodes.
The battery supply chain is largely centralised in China and is highly concentrated and technologically complex.
Chinese carmakers who shift production overseas, for example by nearshoring to Europe or the UK, will likely face similar supply chain constraints to local automakers who contend with massive logistical and geographical bottlenecks.
