CMA CGM, Chery & CEVA: Automotive Logistics Procurement
As Chinese automotive manufacturers expand their global footprint, procurement teams face mounting pressure to secure resilient logistics partnerships that can navigate complex multi-market operations.
Chery's strategic alliance with CMA CGM and CEVA Logistics could offer valuable insights into how procurement functions can support aggressive international growth whilst managing supply chain risks across diverse geographical markets.
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 whilst 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 2024, according to statistics published by the Society of Motor Manufacturers and Traders (SMMT).
This rapid expansion places significant demands on procurement functions to establish robust supplier relationships that can scale at pace.
Eric Dessupoiu, Vice President of Finished Vehicle Logistics at CEVA Logistics, says: "As Chery Auto accelerates its international footprint, managing complex, multi-market automotive supply chains becomes a critical differentiator."
Strategic sourcing across multiple markets
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.
For procurement teams, this multi-regional approach could demonstrate the value of consolidated supplier partnerships that can deliver consistent service levels across diverse markets rather than managing fragmented local supplier relationships.
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.
âBy 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.â
The partnership structure itself could offer procurement professionals a template for supplier relationship management, combining ocean freight capabilities with integrated logistics services under a unified governance framework. This consolidation could potentially reduce contract management complexity whilst improving visibility across the supply chain.
Procurement risks in rapid expansion
According to Deloitte's 2024 Global Automotive Consumer Study, China's automotive industry is the world's most dynamic and innovative market.
However, 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, procurement functions face the challenge of establishing supply chains in markets fraught with 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, localised and future-ready supply chain ecosystems."
Battery supply chain sourcing challenges
Notably, the deal between CMA CGM, CEVA Logistics and Chery Auto covers the supply of EV batteries.
As Chery expands overseas and pushes production into other countries, this presents significant procurement considerations. 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 International Energy Agency'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.
