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Published 18:25 IST, October 16th 2024

Chinese electric vehicle makers' plans to manufacture cars in Europe

European imports of Chinese-made electric vehicles (EVs) have soared, leading European EV producers to fear being priced out of their home market.

Reported by: Thomson Reuters
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ELECTRIC VEHICLE
Representative | Image: Freepik

Chinese EV in EU: Some Chinese carmakers are looking to set up manufacturing and assembly plants in Europe, hoping to sell more lower-cost cars in the region to challenge European competitors amid slowing demand in China, the world's largest car market.

European imports of Chinese-made electric vehicles (EVs) have soared, leading European EV producers to fear being priced out of their home market.

In response, the EU has introduced import tariffs on Chinese-made EVs, arguing that they receive significant state subsidies.

This in turn creates an incentive for Chinese carmakers to set up factories in Europe to mitigate the tariffs.

Here are details of Chinese companies' plans to invest in Europe:

Chery Auto

Chery Auto, China's largest automaker by export volume, has signed a joint venture with Spain's EV Motors to open its first European manufacturing site, in Barcelona. Production is set to start this year with both majority stakeholder EV Motors and Chery producing their own vehicles. Chery has also been in talks with Rome about building a factory in Italy, and the Financial Times has reported it is considering building a factory in Britain this decade.

BYD

The world's largest EV maker plans to make all the cars it sells in Europe locally, it said at the Paris car show on Monday. BYD plans to produce components in Europe and assemble battery packs at plants in Hungary and Turkey, importing only the battery cell from China, Executive Vice President Stella Li told Reuters.

Leapmotor

Leapmotor is set to start taking orders in Europe for a city car and an SUV, the automaker and its partner Stellantis STLAM.MI said in September, as they expand their budget electric vehicle (EV) offering in the region. The T03 EV compact city car will be assembled in Europe, at Stellantis' Tychy plant in Poland. Stellantis CEO Carlos Tavares has hinted the C10 SUV could be manufactured in Europe. Stellantis holds a 51 per cent stake in an international joint venture with Leapmotor and has exclusive rights to build, export, and sell Leapmotor products outside China.

SAIC Motor

State-owned SAIC, China's second-largest auto exporter with its MG-branded cars, is choosing a site for an EV factory in Europe, it said in September. SAIC already has a European parts centre unit in Amsterdam and plans to open a facility in France to meet growing demand there, it said in March.

Xpeng

Electric vehicle maker XPeng is considering setting up a factory in Europe to mitigate the tariffs.

Geely

Geely is scouting locations for a plant in Europe, but has not committed fully, executives said in interviews in September.

Talks are ongoing with Warsaw over an electric vehicle plant in Poland, but officials told Reuters this year they did not view Geely as an ideal partner.

GAC

State-owned carmaker GAC is exploring the manufacture of EVs in Europe to avoid EU tariffs, it told Reuters on Sunday. GAC is targeting 500,000 overseas sales by 2030. It does not yet sell EVs in Europe but was due to launch an electric SUV tailored to the European market at the Paris Auto Show.

Great Wall Motor

The Hungarian government is negotiating with Chinese SUV maker Great Wall Motor to host its first European plant, Hungarian media reported in April, although neither the government nor the firm confirmed the talks. In May, Great Wall Motor closed its Munich office and laid off all 100 employees, but signalled that it did not want to withdraw from Europe completely, German media reported.

Dongfeng Motor Group

Dongfeng Motor Group is in advanced talks about building an auto plant in Italy, Italian sources close to the matter told Reuters in August. The company later said it needed to evaluate sales prospects in Europe before deciding on a factory.
 

Updated 18:27 IST, October 16th 2024