As EU debates local-content rules, Chinese automakers are already adapting
XLY•Chinese automakers are expanding factories and supplier networks in Europe ahead of proposed “Made in Europe” rules. Changan plans European output of 180,000 cars annually by 2028 and 350,000 by 2030, and hopes to build its first European vehicle by the middle of 2027.
1. Building local capacity
Chinese automakers are expanding manufacturing and supplier networks across Europe before the EU finalizes proposed local-content rules. Changan Automobile president Zhao Fei said the company plans to make 180,000 cars a year in Europe by 2028 and 350,000 by 2030, and hopes to build its first European vehicle by the middle of 2027. Changan is also discussing production with European automakers.
2. More production plans
Xpeng, Chery and GAC are also pursuing European production plans based on local supply networks. Xpeng vice president Yeqing Zheng said the company is looking to start production when the proposed rules take effect; Magna already builds electric vehicles for Xpeng in Austria.
3. Rules face debate
The proposed rules are part of the EU’s planned Industrial Accelerator Act, but European countries disagree over which countries should qualify. The current proposal excludes Turkey, Britain and Morocco, whose automotive supply chains are integrated with Europe’s. Some industry representatives warn that limiting the definition to EU countries could damage those supply chains.
