Chinese carmakers gear up European production to sidestep tariffs, import quota
Analysts say idle factories in Europe could be prime targets as Chinese carmakers look to localise production
They plan to either splash out billions of yuan to set up their own factories or tap international marques’ idle plants to build their vehicles, looking to sustain a sales boom in one of the world’s major automotive markets.
“Global growth shifts from exporting vehicles to Europe to producing them locally, from price-led market share gains to margin-led positioning, and from a single export channel to a multimarket footprint,” Morgan Stanley analysts said in a research note issued last week after Beijing and Brussels agreed on an import quota for Chinese-made hybrid vehicles.
“Such a development would favour Chinese EV leaders with the scale, balance sheets and European manufacturing plans already in motion to pivot quickly.”
