Chinese EV makers expand European sales and South Korean partnerships

Chinese electric vehicle (EV) manufacturers are expanding their global footprint through increased sales in Europe and strategic manufacturing partnerships in South Korea to circumvent rising trade barriers.

In Europe, Chinese brands have reached a 14.2% market share in the battery electric vehicle (BEV) segment during the first five months of the year. Despite EU tariffs of up to 35.3%, sales have surged, particularly in the UK and Italy. In Italy, some models were priced as low as €5,000 due to government subsidies. Industry analysts suggest Chinese firms may soon pivot focus toward plug-in hybrid electric vehicles (PHEVs) to avoid specific EU tariffs applied to pure electric models.

Concurrently, Chinese automakers are seeking to use South Korea as a production hub to mitigate tariffs in the U.S. and Europe. Companies are pursuing manufacturing tie-ups and local production partnerships; for instance, Chery Global Innovations is set to acquire a stake in KG Mobility, while Geely holds a significant stake in Renault Korea. These moves leverage South Korea's established supplier networks and skilled workforce to maintain access to major global markets.