Chinese automakers are pushing deeper into European markets, betting that competitive pricing and advances in electric vehicle (EV) technology will win over buyers in a region long led by domestic and U.S. brands. The expansion is occurring against a backdrop of intensified debate between Brussels and Beijing, including EU tariffs on Chinese-made EVs aimed at protecting European producers.
This report reviews how a number of Chinese groups have expanded their presence across the continent through sales, partnerships, joint ventures and factory deals.
BYD
BYD, currently the world’s largest EV seller, represented 2.2% of total car registrations - a commonly used proxy for sales - in the European Union, Britain and the European Free Trade Association over the January-April period, according to data from the European Automobile Manufacturers’ Association. The company already markets vehicles across most European countries and has stated a goal of producing all of its EVs for the continent locally by 2028.
Representatives have also confirmed discussions with Stellantis and other European manufacturers about taking over underused factories in the region as part of its localisation push.
Chery
Chery sells in Europe under its own name and through subsidiaries Jaecoo, Jetour and Omoda, and accounted for 2% of European registrations in January-April. The firm holds a 40% stake in a joint venture with Spanish carmaker EBRO to build cars at a former Nissan plant in Barcelona. EBRO’s chair Rafael Ruiz told reporters in May that production at the site is planned to start at the end of this year or in the first quarter of 2027, with a targeted output of up to 30,000 cars this year that could include Chery models.
FAW / Hongqi
FAW’s luxury marque Hongqi - historically noted as a prestige brand within China - was reported to be in talks with Stellantis about producing vehicles at one of the Fiat-to-Jeep owner’s Spanish plants, according to five people familiar with the discussions in April. FAW plans to launch more than a dozen EV and hybrid models in Europe by 2028 as part of its expansion.
Geely
Geely’s footprint in Europe spans multiple brands including Lotus, Volvo Cars, Polestar and LEVC. The company introduced its eponymous brand to Europe in 2025 and has Lynk & Co and Zeekr present in a limited number of markets. Geely also owns 50% of Smart, the other half being held by Mercedes-Benz Group. Across its various marques, Geely emerged as the largest Chinese carmaker in Europe in the January-April period, accounting for 2.5% of total registrations.
In March, Volvo Cars and Geely Auto signed a memorandum of understanding under which Volvo Cars would act as the exclusive importer and distributor of Lynk & Co EVs in Europe. Reports in May indicated Geely had bought part of a Ford factory in Valencia and that the automakers were considering whether Geely might build a model for Ford.
SAIC
SAIC Motor ranked as the second-biggest Chinese carmaker in Europe for January-April, accounting for 2.4% of total registrations. Its European sales stem from the MG Motor brand and from Maxus. Regional officials in Galicia, northwestern Spain, said SAIC plans to establish a car factory there that would be its first production facility within the European Union. Galicia’s regional government indicated strategic priority for the project and cited an initial investment envisaged at around c200 million, converted in the article as $233 million based on the exchange rate provided ( 1 = 0.8590 euros).
Xpeng
EV startup Xpeng has been reported to be holding talks with Volkswagen and other automakers about the potential acquisition of a factory in Europe. Volkswagen holds a stake in Xpeng. Separately, the car parts supplier Magna said in September 2025 it had been chosen by Xpeng to assemble two of its models in Graz, Austria, for the European market.
Leapmotor
Leapmotor and Stellantis have announced plans to start joint car production in Europe, with two models slated to be built in Spain, moving their relationship beyond distribution into manufacturing. Stellantis acquired a 21% stake in Leapmotor in 2023 and has a largely commercial joint venture, LPMI, through which the Franco-Italian group sells Leapmotor EVs outside China. Ownership of LPMI is 51% Stellantis and 49% Leapmotor. Leapmotor accounted for 0.7% of Europe’s total registrations in January-April.
Trade tensions and protection measures
These commercial and production moves are occurring amid an active dispute over EU tariffs on Chinese-made EVs, which were implemented with the stated aim of protecting European producers. The dynamic of Chinese groups expanding sales channels and negotiating factory deals in Europe has heightened political and trade scrutiny between Brussels and Beijing.
Collectively, the reported activity - from dealership and distribution agreements to joint ventures and potential factory acquisitions - illustrates a coordinated effort by multiple Chinese manufacturers to localise supply chains and scale up production capacity in Europe while the continent transitions toward electrification.
Data points reiterated
- BYD made up 2.2% of EU, UK and EFTA registrations in January-April.
- Chery accounted for 2% of registrations in the same period and holds a 40% stake in a JV to produce cars at a Barcelona plant, with production targeted to begin by end-2026 or Q1 2027.
- Geely accounted for 2.5% of registrations and has multiple brands operating in Europe.
- SAIC accounted for 2.4% of registrations and plans a factory in Galicia with an envisaged initial investment of around c200 million ($233 million at the rate cited).
- Leapmotor represented 0.7% of January-April registrations and will co-produce vehicles in Spain with Stellantis.
These developments cover sales, local manufacturing plans, joint ventures and acquisition discussions, and reflect how the broader EV transition is reshaping competitive dynamics in European automotive markets.