Key facts
- Changan Automobile plans to start local vehicle production in Europe in early 2027.
- Changan Automobile aims for 180,000 cars annually in Europe by 2028.
- Xpeng is also pursuing European production capacity.
Chinese automakers are proactively establishing manufacturing facilities and supply chains in Europe, anticipating the finalization of the EU's proposed 'Made in Europe' local-content rules. Companies like Changan Automobile are setting ambitious production targets, with plans to begin local manufacturing by early 2027, predating the potential implementation of the new requirements. This strategy is driven by rapid market share gains in Europe and slowing sales in China, making Europe a key growth opportunity. Other Chinese manufacturers, including Xpeng, Chery, and GAC, are also advancing their European production plans. The EU's Industrial Accelerator Act aims to bolster the bloc's industrial base by encouraging more in-region manufacturing and sourcing, though the proposal has sparked internal political disputes over country coverage.