Chinese Automaker Chery Expands Business in Europe with Joint Venture in Spain
This week, Chinese automaker Chery reached a significant milestone in their expansion into the European market. On April 19, Chery signed a cooperation agreement with Spanish company Ebro-EV Motors to establish a joint venture in Barcelona, Spain. The collaboration will focus on the development and production of new vehicle models for both companies.
Chery has acquired Nissan’s Barcelona plant and has already begun the construction of new production facilities. The plant, which closed in 2021, is set to restart production in 2024. The new production line at the factory is expected to produce 50,000 vehicles per year starting in 2027, with plans to ramp up to 150,000 vehicles by 2029.
The signing ceremony was attended by Spain’s Prime Minister and the Minister of Industry and Tourism, along with official representatives from China, including the ambassador to Spain and the deputy governor of Anhui Province, where Chery is headquartered.
The Prime Minister of Spain hailed the project as a symbol of the country’s ongoing re-industrialization process. Chery’s executive vice president, Zhang Guibing, emphasized that the Barcelona factory will become one of the company’s main production bases globally and highlighted Chery’s commitment to expanding its presence in the European market.
Chery is not the only Chinese automaker looking to establish a foothold in Europe. BYD recently announced plans to build their own overseas factory in Hungary, becoming the first Chinese automobile manufacturer to set up a factory in Europe. Chery’s acquisition and renovation of existing factories put them in line to potentially become the first Chinese automaker to commence production in Europe.
Setting up factories in Europe allows Chinese car manufacturers to produce locally, reducing the likelihood of triggering trade investigations compared to direct exports. The European market’s demand for electric vehicles has made governments in certain countries, including Spain and Italy, look to Chinese manufacturers to help meet their ambitious auto production goals.
With Germany also expressing openness to Chinese cars entering the European market, Chinese automakers like Chery are strategically positioning themselves to capitalize on the growing demand for electric vehicles in Europe while navigating potential trade barriers.
As Chinese car manufacturers explore opportunities in the European market, the competition in the electric vehicle industry is expected to intensify, with Chery paving the way for other Chinese companies to expand their global footprint.
Source: Fortune Chinese website