The Chinese want to produce electric cars in Europe already this year

The closest to starting production in Europe is the Chinese Chery Auto, which last month signed a joint venture with the Spanish EV Motors. In Barcelona, the lines will start in the former factory of the Japanese Nissan, closed three years ago. Thus, 1,600 employees who were dismissed at the time can find work again.

Preparations continue apace. The head of EV Motors, Pedro Calef, stated that production of the Chery Omoda 5 electric car will begin in the last quarter of this year, and then joint production of the Spanish electric pickup Ebro at the turn of the year. The factory plans to produce 50,000 cars a year within three years.

China’s BYD is building an even bigger production plant in Szeged, Hungary. The annual capacity is to start at 150,000 purely electric cars, the ambition is to start in 2025. The importance of the investment in the amount of billions of euros is also proven by the fact that Hungary is among the countries that, in addition to France and Serbia, will be visited by Chinese President Xi Jinping these days .

European ports are flooded with Chinese electric cars

Economy

BYD has been producing electric buses in the Hungarian city of Komárom since 2016, and the Chinese company CATL also makes batteries in the country.

By the way, at the turn of the year, BYD (from English Build Your Dreams – build your dreams – editor’s note) surpassed the previous number one, the American Tesla, in global sales of electric cars.

They will bypass import restrictions

The Chinese car manufacturer Dongfeng is now negotiating with the Italian government about the possibility of building the plant.

It is said that the best-selling Chinese car brand MG is also considering a European factory on the old continent.

Cheaper Chinese cars may soon seriously compete with established brands including domestic Škoda Auto and the Volkswagen Group. Even though Chinese electric cars are sold more expensively in Europe than in China, they can be purchased for a price of 750,000 crowns, while, for example, you can’t buy a Škoda Enyaq for less than a million crowns even as a used one.

“Chinese automakers are setting up their own factories in Europe to be prepared for import restrictions that will almost certainly come in some form. But at the same time, they want to build greater local awareness and be closer to their target markets,” Petr Knap, an expert on the automotive industry from EY, told Novinkám. According to him, it will probably not be just assembly plants using parts imported from Asia.

“I don’t think they would bet only on imported parts. They will combine some locally produced parts – significantly from Chinese suppliers who will come with them to Europe. This will allow them to demonstrate local origin, which will logically be one of the requirements for the protection of European industry,” added Knap.

The European Commission has been investigating Chinese state subsidies to the car industry since the fall. According to her, imported cars are cheap thanks to state subsidies, so she is considering tightening market protection measures in retaliation. One possibility is to increase import duties above the current ten percent.

“Chinese automakers are preparing to expand into a number of world markets. Even from the point of view of the planned occupation of part of the European market, the pressure to improve business and political relations makes sense. The existence of production capacities in Europe can help with this,” commented Roklen analyst Pavel Peterka. “Let’s not forget that the pressure to expand electromobility is largely political. Therefore, the steps taken by Chinese car companies may not be solely due to financial interests,” he says.

In 2012, Great Wall in Bulgaria was the very first Chinese car company to try manufacturing in the EU. These were pick-ups and SUVs with internal combustion engines. But the project ended with the bankruptcy of the Bulgarian partner and the end of production in 2016.