Chinese Automakers Scout European Factories as Local-Content Rules Loom

Chinese automakers are searching for production sites in Europe as the European Union develops rules that could require more local content in vehicles sold within the bloc.

Chinese automakers are seeking European production sites as the European Union considers new local-content requirements for vehicles sold in the bloc. [Photo: BYD Global Facebook]

Alfredo Altavilla, a European adviser to Chinese automaker BYD, told Reuters that Chinese manufacturers are particularly interested in existing assembly plants because they can be brought into production more quickly than newly built facilities.

Spain and France are among the locations BYD is considering, Altavilla said.

He described the company’s approach as finding a facility that could be acquired and restored with relatively limited investment and brought into operation quickly.

The search is part of a wider effort by Chinese automakers to establish manufacturing operations within the European Union.

Brussels has been developing “Made in Europe” initiatives that would introduce local-content requirements in strategic industries, including measures affecting electric vehicles.

The European Commission outlined plans for such requirements earlier this year as part of efforts to strengthen European manufacturing and reduce dependence on imports.

Chinese manufacturers have already pursued partnerships involving existing European production facilities. 

Reuters reported that Leapmotor and Dongfeng have arrangements involving Stellantis facilities, while Geely has worked with Ford in Spain. Chery has also partnered with a local company to take over a former Nissan plant in Spain.