Several Chinese electric vehicle (EV) makers are ramping up efforts to establish manufacturing and assembly plants in Europe, Reuters news report said.
This move comes in response to European import tariffs aimed at Chinese-made EVs, which European authorities argue benefit from heavy state subsidies. With China’s domestic market facing slowing demand, these carmakers are seeking to challenge European rivals by offering lower-cost EVs.
The European electric cars market is projected to reach $855.17 billion by 2028, at a CAGR of 40.7 percent during the forecast period.
The size of the European EV market is projected to reach $226.1 billion in revenue in 2024, and $383.3 billion by 2029. In terms of unit sales, the European EV market is expected to reach 5.63 million unit sales.
Here’s a list of key Chinese EV companies and their expansion plans in Europe:
Chery Auto
Chery has partnered with Spain’s EV Motors to open its first European manufacturing site in Barcelona, with production starting this year.
Chery is also exploring potential sites in Italy and the UK for future manufacturing facilities.
BYD
The world’s largest EV maker, BYD, announced plans to manufacture all EVs sold in Europe locally.
BYD will produce components and assemble battery packs at plants in Hungary and Turkey, importing battery cells from China.
Leapmotor
Partnering with Stellantis, Leapmotor is set to launch the T03 compact city car and the C10 SUV in Europe.
The T03 will be assembled in Stellantis’ Tychy plant in Poland.
SAIC Motor (MG brand)
SAIC, China’s second-largest auto exporter, is selecting a site for an EV plant in Europe and has announced plans for a facility in France to meet growing demand.
XPeng
XPeng is considering establishing a factory in Europe to bypass tariffs on Chinese-made EVs.
Geely
Geely is scouting potential sites in Europe, with talks underway in Poland, but no firm commitment has been made yet.
GAC
GAC is exploring setting up manufacturing in Europe to avoid tariffs, with a goal of reaching 500,000 overseas sales by 2030.
Great Wall Motor
The company is in talks with Hungary to set up its first European plant. However, it has scaled back its European presence after closing its Munich office in May.
Dongfeng Motor Group
Dongfeng is in advanced discussions to build a plant in Italy but has not yet committed, awaiting a clearer view of European sales prospects.
This expansion marks a significant shift in the European automotive landscape, with Chinese EV manufacturers eyeing a greater market share amid regulatory challenges and intense competition.