Chinese Carmakers Build European Factories Early

Chinese automakers are rapidly establishing European factories and supply chains to get ahead of the European Union's proposed local content rules. Facing domestic challenges and seeking growth, companies like Changan and Xpeng plan to begin local production well before regulations take effect.

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Xiaopeng He, Chairman and CEO of Xpeng, speaks during the Paris Automotive Summit as part of the 2026 Paris Auto Show in Paris, France, October 13, 2026. REUTERS/Benoit Tessier

CHONGQING CHANGAN AUTOMOB-A plans to build 180,000 cars a year in Europe by 2028, bypassing proposed EU local-content rules. The move comes as Chinese automakers race to secure European supply chains ahead of new manufacturing mandates. China producers are betting that local factories will shield them from tightening trade barriers.

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