Chinese automakers are stepping up their presence in Europe, leveraging competitive pricing and advanced technology to enter a market long dominated by European and U.S. brands. The push comes as the global auto industry accelerates its shift toward electric vehicles.
This expansion has also triggered friction between Brussels and Beijing, particularly over EU tariffs on Chinese-made EVs, which were introduced to protect European producers but have highlighted rising trade tensions.
Several leading Chinese automakers have already announced or advanced their European operations. BYD is building an EV plant in southern Hungary, expected to begin production by the end of 2025, and another in Turkey slated for 2026, with a goal of fully localizing European production by 2028. Chery Automobile will launch three combustion-engine SUVs in Poland this November and has rolled out its brands across markets including the UK, Spain, and Italy. Changan Automobile entered Europe earlier this year and aims to sell cars in 10 markets while exploring a local plant. Geely will debut its own brand in the UK in the fourth quarter of 2025, alongside its established presence through Lotus, Volvo, and Polestar. Nio is preparing to introduce a new model under its Firefly brand, though it faces challenges in building its sales and service networks. SAIC Motor sold over 176,000 units in Europe in the first seven months of 2025, mainly through its MG and Maxus brands, representing a 2.1% market share. XPeng has partnered with Magna in Austria to assemble models for the European market and is deepening collaboration with Volkswagen on technology and procurement.
【Background】 In recent years, Chinese carmakers have accelerated their global expansion by capitalizing on strengths in EV and smart technologies. Europe, one of the fastest-growing EV markets, presents both opportunities for growth and challenges such as tariffs, local competition, and regulatory barriers.
【Conclusion】 The rapid expansion of Chinese automakers is reshaping the European automotive landscape. For businesses, closely monitoring policy developments and market trends will be essential to navigating risks and seizing emerging opportunities in this evolving sector.
Source: This article is based on public reporting from Reuters.
Original link: https://www.reuters.com/business/autos-transportation/chinas-carmakers-expanding-their-presence-europe-2025-09-24/
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