Chinese automakers expand European production to bypass EU tariffs

Chinese automotive industry electric vehicle production European market expansion Industrial Accelerator Act automotive manufacturing

The Chinese automotive industry is undergoing a massive strategic shift, moving from pure export to establishing significant manufacturing bases within Europe. Analysts project that Chinese brands will produce approximately 90,000 vehicles in Europe this year, with production expected to reach one million units by 2030 and 1.5 million annually by 2035. This expansion is largely driven by a desire to bypass high EU countervailing duties on imported electric vehicles, which currently range from 7.8% to 35.3%.

Spain is emerging as a primary hub for this production. Companies like Chery are already manufacturing models in Barcelona, while Leapmotor plans to utilize a Stellantis plant in Zaragoza. BYD is preparing to start production in Hungary and is also considering an additional plant in Spain. Other manufacturers, including Geely, are also establishing local footprints through partnerships.

To ensure these investments benefit the local economy, the European Union is considering the Industrial Accelerator Act (IAA). This proposed legislation aims to mandate a specific proportion of European-made components in vehicles manufactured within the EU, preventing manufacturers from simply setting up assembly lines for imported Chinese parts with minimal local value addition.

Meanwhile, the domestic market in China is facing intense pressure. Manufacturers launched 542 models between January and May 2026, averaging 3.6 per day. This rapid pace of innovation, combined with falling domestic retail sales, is forcing companies to focus heavily on international markets to maintain growth.

Entities

BYD · Chery · European Union · European Union · He Zhiqi · Leapmotor · Spain · Stellantis

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] BYD is preparing to start production at its new factory in Hungary and is considering an additional plant in Spain. byznys.hn.cz · auto-mania.cz · mobilsiden.dk
[● 7 SOURCES] Chinese brands are expected to produce approximately 90,000 vehicles in Europe this year. byznys.hn.cz · auto-mania.cz · mobilsiden.dk · www.fxstreet.cz · www.auto.cz · +2 more
[● 6 SOURCES] The proposed Industrial Accelerator Act (IAA) aims to mandate the use of European components in vehicles manufactured within the EU. byznys.hn.cz · auto-mania.cz · www.fxstreet.cz · www.auto.cz · mobilsiden.dk
[● 3 SOURCES] The EU has applied countervailing duties on battery electric vehicles imported from China, with rates ranging from 7.8% to 35.3%. auto-mania.cz · emmepress.com · forococheselectricos.com
[○ 1 SOURCE] Chery is already producing models for the Spanish brand EBRO in a former Nissan factory in Barcelona. auto-mania.cz
[● 7 SOURCES] Chinese vehicle production in Europe is projected to reach one million units by 2030. byznys.hn.cz · auto-mania.cz · mobilsiden.dk · www.fxstreet.cz · www.auto.cz · +2 more
[○ 1 SOURCE] Leapmotor plans to move production of the Leapmotor B10 electric SUV to a Stellantis plant in Zaragoza, Spain. auto-mania.cz
[● 7 SOURCES] Chinese car manufacturers could produce up to 1.5 million vehicles annually in Europe by 2035. byznys.hn.cz · auto-mania.cz · mobilsiden.dk · www.fxstreet.cz · www.auto.cz · +2 more
[○ 1 SOURCE] European new car sales increased by 4.1 percent year-on-year in July. www.autoviny.sk
[○ 1 SOURCE] Chinese brands reached a record 11.2 percent share of the European market in July. www.autoviny.sk
[● 5 SOURCES] Chinese car companies launched 542 models between January and May of this year. fdrive.cz · www.vijesti.ba · www.novinky.cz · autojosh.com · profitiraj.ba
[● 5 SOURCES] Developing a brand-new car in China can take more than two years and cost about one billion yuan. autojosh.com · fdrive.cz · www.vijesti.ba · www.novinky.cz · profitiraj.ba