*

Chinese EV makers showcase cars at German auto supplier

fair

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'We will never turn against Europe', Geely executive says

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Nearly 900 Chinese suppliers also in attendance

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Europe is 'center of gravity' for suppliers, association

says

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Frankfurt Automechanika trade fair runs from Sept. 10 to

14

(Adds Geely executive comments in paragraphs 3-5, Europe sales

data in paragraph 9)

By Victoria Waldersee

FRANKFURT, Sept 10 (Reuters) - Nearly 900 Chinese auto

suppliers and a handful of electric vehicle makers are taking

part in a trade fair in Frankfurt as the country's car sector

defies looming trading barriers to expand its global presence

and counter sinking profits at home.

Chinese carmakers including BYD,

Geely, Hongqi and GAC International were set to

display their vehicles at the fair, called Automechanika, as an

added feature to the event which normally focuses on suppliers.

"Even if some in Europe turn against us, we will never turn

against the European market," said Victor Yang, senior

vice-president at Geely, the only carmaker to host a press

conference at the fair.

Geely, which according to Yang sold around 200,000 cars in

Europe in the first half of this year, will face tariffs of up

to 19.3% on its China-made EVs under current plans by the

European Commission, which the company has previously described

as "disappointing".

"Our industry can only be stronger when we work together and

cooperate," Yang said.

China's auto sector is investing heavily in overseas

expansion even as Europe and North America erect trade barriers

to stem the inflow of China-made EVs they say benefit from

unfair subsidies.

The so-called "EV Expo", which opens on Tuesday, was set up

in partnership with the China Council for the Promotion of

International Trade, an added feature to the event usually

focused on suppliers.

"We want EVs made by Chinese carmakers, which are currently

to some extent unknown, to gain trust in the industry," Olaf

Musshoff, Automechanika's director, told a press conference.

Chinese carmakers' share of passenger car sales in Europe

rose to 17% in the first seven months of 2024 from 12% a year

earlier, according to data from automotive consultancy Inovev,

and Chinese car exports have reached record highs this year.

The large presence of Chinese suppliers - almost double the

number of German suppliers in attendance - highlights their

growing role in the global supply chain as Chinese carmakers

increasingly plan local production in Europe and elsewhere to

circumvent trade tariffs.

A PwC study released this month warned that focus on cost

efficiency and dwindling access to capital were making it harder

for suppliers in Germany to invest in innovative technologies.

Chinese companies - often with state backing - were more

likely to spend on improving batteries and software, the study

said, winning market share from German and Japanese rivals.

Still, the size and scope of Automechanika Frankfurt - with

4,200 companies attending from over 170 countries - demonstrated

Europe was still central to promoting innovation in the sector,

said Frank Schlehuber of Europe's supplier association CLEPA.

"Frankfurt is still the centre of gravity," he said.