Chinese carmakers expand in Europe amid EV shift and EU tariff tensions

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, the world 's largest EV seller, accounted for 2.2% of total car registrations, a proxy for sales, in the European Union, Britain and the European Free Trade Association between January and April, data from the European Automobile Manufacturers ' Association showed. The company, which sells cars across most of Europe, aims to be able to produce all of its EVs for the continent locally by 2028, Executive Vice President Stella Li told Reuters at the IAA Mobility car show in Munich. BYD confirmed in May it was in talks with Stellantis and other European carmakers to take over underused factories in the region. CHERY Chery operates in Europe through its eponymous brand and subsidiaries Jaecoo, Jetour and Omoda. It made up 2% of total registrations in Europe in January-April. The company has a 40% stake in a joint venture with Spanish carmaker EBRO to manufacture vehicles at a former Nissan plant in Barcelona. Chery plans to start production there at the end of this year or the first quarter of 2027, EBRO chair Rafael Ruiz told reporters in May, adding the targeted production level of up to 30,000 cars this year could include Chery models. FAW FAW 's luxury automaker Hongqi, famed as Mao Zedong 's preferred car brand, is in talks with Stellantis to build vehicles at one of the Fiat-to-Jeep owner 's Spanish plants as it expands in Europe, five sources familiar with the matter said in April. The company plans to launch more than a dozen EV and hybrid models in Europe by 2028. GEELY Geely is established in Europe through carmakers Lotus, Volvo Car, Polestar and LEVC. It launched its eponymous brand in Europe in 2025 and has Lynk & Co and Zeekr brands operating in a handful of European markets. It also owns 50% of carmaker Smart, with the Mercedes-Benz Group owning the other half. Through all these brands, Geely has become the biggest Chinese carmaker in Europe, accounting for 2.5% of total registrations on the continent in January-April. In March, Volvo Cars signed a memorandum of understanding with its Chinese sister company Geely Auto to become the exclusive importer and distributor of Lynk & Co EVs in Europe. Geely also bought part of a Ford factory in Valencia, Spanish trade publication La Tribuna de Automocion reported in May. The automakers were also considering having Geely build a model for Ford, the report said. SAIC SAIC Motor is the second biggest Chinese carmaker in Europe, accounting for 2.4% of the continent 's total registrations in January-April. The sales come from its MG Motor brand as well as from Maxus. The company plans to set up a car factory in Spain 's northwestern region of Galicia that would be its first production facility in the EU, the regional government said in June. Galicia 's leader Alfonso Rueda said his administration had given strategic priority to the project, with an initial investment envisaged at around €200 million ($233 million). XPENG EV startup Xpeng is in talks with Volkswagen and other automakers about buying a factory in Europe, the Financial Times reported in May. Volkswagen owns a stake in Xpeng. 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 plan to start joint car production in Europe, with two models to be built in Spain, deepening their tie-up from distribution into manufacturing, the Franco-Italian carmaker said in May. Stellantis bought a 21% stake in Leapmotor in 2023 and formed LPMI, a largely commercial joint venture through which it sells Leapmotor EVs outside China. Stellantis holds 51% of LPMI, with Leapmotor owning 49%. Leapmotor 's January-April sales in Europe accounted for 0.7% of the region 's total registrations. ($1 = 0.8590 euros)