Key facts
- BYD expects its European workforce to exceed 40,000 by 2030.
- BYD is constructing an electric vehicle manufacturing plant in Szeged, Hungary.
- Changan Automobile aims for 180,000 cars annually in Europe by 2028 and 350,000 by 2030.
- Changan Automobile targets first vehicle production in Europe in early 2027.
- Xpeng, Chery, and GAC also have European production plans.
- The EU has agreed to reduce hybrid vehicle imports from China.
Chinese automakers are accelerating their expansion into Europe by establishing factories and supply chains, anticipating the finalization of the EU's 'Made in Europe' local-content rules. BYD Co. Ltd. expects its European workforce to surpass 40,000 by 2030, with a new manufacturing plant under construction in Szeged, Hungary. This expansion includes potentially utilizing idle capacity from European rivals, deepening BYD's regional presence as established automakers face job cuts and underused plants.
Changan Automobile aims to produce 180,000 cars annually in Europe by 2028 and 350,000 by 2030, with a target for first vehicle production in early 2027. Xpeng, Chery, and GAC are also developing plans for local production. Volkswagen CEO Oliver Blume has voiced support for the 'Made in Europe' initiative.
However, automakers with operations in countries like Turkey, Britain, and Morocco are concerned about potential exclusion from the 'Made in Europe' definition, which could disrupt integrated supply chains. The Automotive Industry Exporters' Association of Turkey stated that its industry supports 250,000 EU jobs.
In parallel, the EU has reached an agreement with China to significantly reduce hybrid vehicle imports into the bloc. Analysts suggest these measures may create hurdles but are unlikely to halt the expansion of Chinese automakers.