Chinese automotive brands are increasingly seeking local production facilities in Europe to avoid high tariffs and qualify for significant ecological bonuses, particularly in France.

Leapmotor is attempting to assemble its T03 model in Poland, utilizing a semi-knock-down (SKD) method that relies heavily on Chinese components.

Italy and Austria are actively working to attract Chinese automotive investments, with plans to repurpose existing European production units.

Chinese automakers are forming alliances with competitors to solidify their presence in Europe and partner countries.

These manufacturers are emphasizing adaptability and responsiveness in their strategies to navigate the complex regulatory, fiscal, and customs landscape in Europe.

In addition to local production, Chinese brands are investing in countries with low labor costs and favorable trade agreements with Europe, such as Turkey and Morocco.

Central Europe is emerging as a favored destination for Chinese automakers, with BYD planning to establish a factory in Hungary.

Chery is poised to acquire the former Nissan plant in Barcelona, while Nio is contemplating the restart of operations at the Audi factory in Brussels.

Volkswagen has formed a partnership with XPeng to design vehicles tailored for the European market.

Stellantis is collaborating with Leapmotor to share technology and distribution networks, which will enable Leapmotor to rapidly increase its sales.