Chinese carmakers deepen Europe expansion as EV production plans advance

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Chinese EV expansion in Europe

Highlights

BYD targets local production of all European EVs by 2028, with new plants planned in France and Hungary assembly starting Q4 2024.
Geely, with 3.1% of total registrations from January to August, expands European footprint through joint SUV production at Ford's Spanish plant.
Heightened EU-China trade tensions and new import restrictions drive Chinese automakers—BYD, Chery, SAIC, Leapmotor—toward accelerated local European manufacturing investments.

Brand-by-brand expansion plans in Europe

As reported by Reuters, Chinese carmakers are building out sales, partnerships and manufacturing plans across Europe as they try to establish a stronger foothold in a market long dominated by European and U.S. brands.

BYD, the world's largest EV seller, accounts for 2.5% of total car registrations in the European Union, Britain and the European Free Trade Association between January and August, according to data from the European Automobile Manufacturers' Association. Executive vice president Stella Li says the company aims to build two more plants in Europe, with France a possible location, while assembly at its new Hungary plant is expected to begin in the fourth quarter of this year. BYD is aiming to produce all of its EVs for the continent locally by 2028.

Changan says it is in active talks with European manufacturers on producing cars in Europe. President Zhao Fei says the company hopes to produce its first car in Europe in early 2027 and plans to announce a factory location and local partners by the end of 2026.

Chery, which operates through its own brand and subsidiaries Jaecoo, Jetour and Omoda, makes up 2.3% of total registrations in Europe in January to August. The company holds a 40% stake in a joint venture with Spain's EBRO to manufacture vehicles at a former Nissan plant in Barcelona, with production planned for the end of this year or the first quarter of 2027.

FAW's luxury brand Hongqi is in talks with Stellantis to build vehicles at one of the group's Spanish plants, according to five sources familiar with the matter cited by Reuters in April. The company plans to launch more than a dozen EV and hybrid models in Europe by 2028.

Geely is already established in Europe through Geely, Lotus, Volvo Cars, Polestar, LEVC, Lynk & Co and Zeekr, and it also owns 50% of Smart. Across those brands, it is the biggest Chinese carmaker in Europe, accounting for 3.1% of total registrations in January to August. In July, Geely announced plans to build two electric SUVs at a Ford Motor factory in Spain under a joint venture.

Leapmotor and Stellantis plan to start joint car production in Europe, with two models to be built in Spain. Stellantis also plans to build small electric vehicles at its factory in Italy using a platform being developed with Leapmotor.

SAIC Motor is the third-biggest Chinese carmaker in Europe, with 2.5% of total registrations in January to August. The company plans to set up a car factory in Galicia in northwestern Spain, which would become its first production facility in the European Union.

Xpeng is in talks with Volkswagen and other automakers about buying a factory in Europe, the Financial Times reported in May.

Trade tensions and regional market impact

The latest expansion drive is taking shape against a more contentious trade backdrop between Europe and China. The growth of Chinese brands has helped fuel disputes between Brussels and Beijing, including a row over European Union tariffs on Chinese-made EVs.

The European Union has also recently announced a deal with China to curb imports of Chinese hybrid vehicles into the bloc. That adds pressure on Chinese manufacturers to localize production in Europe, making factories, joint ventures and assembly partnerships a strategic response not only to demand growth but also to rising regulatory and trade risks.

The registration data in the January to August period show that several Chinese groups are already gaining measurable scale in the region. Europe is therefore becoming both a key overseas growth market for Chinese automakers and an increasingly important battleground for the continent's EV manufacturing base.

Our earlier article on European automakers reviving retro EV models explained how legacy brands are bringing back classic nameplates and design cues to defend market share as lower-cost Chinese electric vehicles expand across Europe. It highlighted early wins like Renault’s electric Renault 5, while stressing that nostalgia alone won’t be enough without progress in areas such as fast charging and autonomous-driving technology.

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