Chinese automakers accelerate plant projects in Europe

The taxes imposed by the European Union, in effect since July 4, 2024, have caused significant concern among Chinese automakers. In response, they are actively seeking to establish production facilities within Europe or maximize the efficiency of their existing ones. The clear objective is to bypass tariffs on electric vehicles produced in China and imported into Europe. BYD plans to begin production in Szeged, Hungary, in 2025 and is already exploring a second site to further expand its European operations. Dongfeng is also in "advanced negotiations" with the Italian government to establish industrial facilities in the country - a region previously considered by BYD before it committed to Hungary. Meanwhile, two other Chinese automotive giants are eyeing Spain. SAIC, which owns MG Motor and Maxus, is planning a new production site, while Chery has already set up operations in the country, having taken over a former Nissan plant in Barcelona earlier in 2024. Chery is set to launch its first models by the end of the year.