To boost sales of budget electric vehicles (EVs), several Chinese car manufacturers are considering relocating their production facilities to Europe. This strategy would allow them to circumvent the high tariffs imposed by the European Union on EVs imported from China.
This decision is driven by two key factors:
1. The demand for electric vehicles in the Chinese domestic market is gradually declining.
2. European countries have implemented high tariffs on Chinese EV imports, motivated by concerns that local manufacturers may struggle to compete with the influx of Chinese-made electric vehicles.
Detailed insights into the plans of Chinese companies expanding into Europe:
CHERY AUTO
Chery Auto, one of China’s leading exporters, has already taken significant steps toward collaborating with European firms. The company has officially signed a cooperation agreement with Spanish automaker EV Motors. According to Reuters, joint production of electric vehicles will begin this year. Additionally, Chery Auto is reportedly in talks with Italian and British partners.
BYD
BYD, the world’s largest electric vehicle manufacturer, plans to shift nearly all production for the European market to Europe, with essential components sourced from factories in Hungary and Turkey. According to the company’s Vice President, Stella Li, only smaller parts will be imported from China.
LEAPMOTOR
Chinese automaker Leapmotor announced its partnership with Stellantis in September. According to Stellantis’ CEO, Carlos Tavares, production of Leapmotor’s electric vehicles will take place at the Stellantis factory in Poland.
SAIC MOTOR
SAIC Motor, China’s second-largest automotive exporter and a state-owned enterprise, is planning to establish an EV plant in France to meet the rising demand in the European market. The company already produces automotive parts in Amsterdam.
