Chinese automakers are increasing their presence across Europe through manufacturing investments, distribution agreements and factory acquisitions as electric vehicle (EV) demand continues to grow across the region. Companies including BYD, Geely, SAIC, Chery, Xpeng and Leapmotor are expanding operations while benefiting from rising EV adoption and changing consumer preferences, despite ongoing trade tensions between the European Union and China over tariffs on Chinese-made electric vehicles.

The expansion comes as Europe’s vehicle market continues to shift toward electrified transportation. New vehicle registrations in the European Union increased 4.2% through April 2026, while battery-electric vehicles reached a 19.7% market share, up from 15.3% a year earlier. Hybrid vehicles accounted for 38.2% of registrations, while plug-in hybrids represented 9.6%.

A total of 746,899 battery-electric vehicles were registered in the EU during the first four months of 2026. Italy recorded growth of 73.1%, followed by France at 48.2% and Germany at 41.3%, demonstrating rising demand across the region’s largest automotive markets.

Chinese manufacturers are moving to capture a growing share of that demand. BYD, the world’s largest electric vehicle maker, accounted for 2.2% of vehicle registrations across the European Union, the United Kingdom and the European Free Trade Association between January and April. The company plans to localize production for the European market by 2028.

“We want to be able to produce all of our electric vehicles for Europe locally by 2028,” BYD The company also confirmed it is discussing potential acquisitions of underutilized manufacturing facilities in Europe, including talks with Stellantis and other automakers.

BYD’s expansion has been supported by growing EV demand linked to higher fuel prices. The company more than doubled its European Union sales in April, while inquiries for BYD vehicles on Germany’s Carwow platform increased 25,000% during the first quarter. 

Geely has become the largest Chinese automaker in Europe through its portfolio of brands, including Volvo Cars, Polestar, Lotus, Lynk & Co, Zeekr and Smart. The company accounted for 2.5% of total registrations in Europe during the January-April period, ahead of its Chinese competitors.

In March, Volvo Cars signed a memorandum of understanding with Geely Auto to become the exclusive importer and distributor of Lynk & Co electric vehicles in Europe. Geely has also reportedly acquired part of a Ford facility in Valencia, Spain, as it evaluates additional manufacturing opportunities.

SAIC Motor ranked second among Chinese automakers in Europe with a 2.4% registration share through its MG Motor and Maxus brands. The company plans to establish its first European Union manufacturing facility in Galicia, Spain.

Regional authorities estimate the project will require an initial investment of approximately €200 million (US$233 million). Galicia President Alfonso Rueda said the regional government has granted strategic-priority status to the investment.

Chery is expanding through its Chery, Omoda, Jaecoo and Jetour brands. The company represented 2% of total European registrations during the first four months of 2026 and holds a 40% stake in a joint venture with Spanish automaker EBRO.

Production at a former Nissan facility in Barcelona is expected to begin by the end of 2026 or during the first quarter of 2027. EBRO Chairman Rafael Ruiz said annual production could reach up to 30,000 vehicles, including Chery models.

Chinese luxury automaker Hongqi, owned by FAW, is also evaluating European production. According to sources familiar with the discussions cited by Reuters, the company is negotiating with Stellantis to manufacture vehicles at one of the automaker’s facilities in Spain. Hongqi plans to launch more than a dozen electric and hybrid models in Europe by 2028.

Xpeng is pursuing a similar localization strategy. Reports indicate the company is in discussions with Volkswagen and other manufacturers regarding the acquisition of a European production facility. Magna International was selected in 2025 to assemble two Xpeng models in Austria for the European market.

Meanwhile, Leapmotor and Stellantis announced plans to begin joint vehicle production in Europe, with two models scheduled for manufacturing in Spain. The initiative expands a partnership that began after Stellantis acquired a 21% stake in Leapmotor in 2023.