Published by Global Banking & Finance Review®
Posted on July 8, 2025
3 min readLast updated: January 23, 2026
Add as preferred source on GoogleChinese automakers are expanding in Europe, focusing on electric vehicles and competitive pricing to challenge local brands.
(Reuters) - Chinese automakers are expanding in Europe, betting on their competitive pricing and advanced technology to break into a market traditionally dominated by European and American brands, amid a global shift towards electric vehicles.
This expansion has stoked trade tensions between Brussels and Beijing, including a row over EU tariffs on Chinese-made EVs, imposed to protect European producers.
The following Chinese carmakers have expanded their footprint in Europe:
BYD:
BYD is reinforcing its presence in Europe by building an electric car factory in southern Hungary that should start production by the end of 2025. A separate facility in Turkey is due to start production in 2026.
BYD, which sells cars across most of Europe, plans to be able to produce all of its electric vehicles (EVs) for the continent locally by 2028, Executive Vice President, Stella Li, told Reuters at the IAA Mobility car show in Munich.
CHERY AUTOMOBILE:
Chery's sport-utility vehicle maker Jetour is entering the European market by launching sales of three combustion-engine SUVs in Poland in November.
Earlier this year, the group launched sales of its Chery brand in Britain and has launched the Omoda and Jaecoo brands across half a dozen European markets, including Spain, Italy and Poland.
CHONGQING CHANGAN AUTOMOBILE:
Changan launched operations in Europe in March and said it plans to start car sales in 10 markets on the continent this year.
The company plans to build a European factory to support future sales on the continent and is considering possible locations for the plant, an executive told Reuters on July 2.
GEELY AUTOMOBILE:
Geely is launching its eponymous brand in Britain at the start of the fourth quarter of 2025 with the sale of its electric EX5 SUV.
The group is already established in Europe through carmakers Lotus, Volvo Cars and Polestar, in which it is the majority shareholder.
Two of Geely's other Chinese brands, Zeekr and Lynk & Co, already operate in a handful of European markets.
NIO:
Nio said earlier this year it would launch an EV from its Firefly brand in Europe in the third quarter of 2025.
The company's progress in Europe has been slower than expected due to sales and service network challenges, CEO William Li said in April.
SAIC MOTOR CORP:
SAIC Motor sold 176,415 units in Europe between January and July, data from the ACEA shown, representing 2.1% of the EU, EFTA and UK car registration on the period.
The company's sales come mainly from its MG Motor brand as well as from Maxus.
XPENG:
Car parts supplier Magna said in September, it was chosen by XPENG to assemble two of its models in Graz, Austria for the European market starting in the third quarter of 2025.
The group also said in June it was looking at more aspects of its existing collaboration with Volkswagen such as joint procurement, charging and different car models. It currently develops advanced chips for VW cars.
The automaker has launched sales in a number of European markets, including in Britain in January.
ZHEJIANG LEAPMOTOR TECHNOLOGY:
Leapmotor unveiled, a new hatchback model, at the Munich car show in Spetmber, adding another product to the Chinese EV maker's lineup in Europe.
The company, partly owned by Stellantis, formed a joint venture 51% controlled by Stellantis that gives the European car group exclusive rights to export, sell and manufacture Leapmotor EVs outside Greater China.
(Reporting by Mathias de Rozario in Gdansk; Editing by Matt Scuffham)
BYD is building an electric car factory in southern Hungary, expected to start production by the end of 2025. The company aims to produce all of its electric vehicles for Europe locally by 2028.
Chery is launching sales of three combustion-engine SUVs in Poland and has already introduced its Chery brand in Britain, along with the Omoda and Jaecoo brands across several European markets.
Nio plans to launch an EV from its Firefly brand in Europe in the third quarter of 2025. However, the company's progress has been slower than expected due to challenges with its sales and service network.
SAIC Motor sold 176,415 units in Europe between January and July, which represents 2.1% of the car registrations in the EU, EFTA, and UK during that period.
XPENG has chosen Magna to assemble two of its models in Graz, Austria, starting in the third quarter of 2025. The company is also exploring further collaboration with Volkswagen on various aspects.
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