Chinese automakers are accelerating measures to secure production facilities in Europe before a proposed EU Industrial Acceleration Law makes future investments more difficult, Automotive News reported. The draft rules would require regulatory approval for large investments of more than 100 million euros from countries dominating key sectors such as electric vehicles and batteries, and could impose conditions on property, intellectual property, EU employment and local supplies.
Combined with EU duties on Chinese electric vehicle imports ranging from 10% to almost 45%, these proposals are forcing Chinese groups to quickly localize production, often using existing facilities rather than building new plants. Recent steps include Chery exploring the possibility of manufacturing with Nissan in Sunderland, manufacturing Leapmotor vehicles at Stellantis plants in Spain, using Dongfeng at the Stellantis plant in Rennes, and planning for SAIC to build a plant in Galicia. BYD, which is already preparing production in Hungary, is also exploring existing sites in Southern Europe, having suspended its project in Turkey.
This strategy is beneficial to both sides: Chinese brands are reducing the impact of duties and consolidating their positions in the European industry, while European automakers are improving the utilization of underutilized factories and protecting jobs. With the share of Chinese brands in the European market growing from 0.5% in 2021 to almost 10% in spring 2026, the partnership between the factories could change the industrial map of Europe and make Chinese manufacturing an integral part of the region's automotive ecosystem.
