Changan Automobile is planning to establish a production facility in Europe, marking a significant step forward in its global strategy.
According to Reuters, Chinese automaker Changan Automobile (000625.SZ) is ramping up its globalization efforts with plans to build a manufacturing plant in Europe to support the expansion of its electric vehicle (EV) business in the region. At a recent test drive event for the Deepal S07 SUV held on the outskirts of London, Nic Thomas, head of marketing, sales, and service for Changan Europe, stated that the company is actively exploring local production options, with the goal of making “in Europe for Europe.”
Although Changan has yet to reveal the exact location or timeline for the facility, Thomas emphasized the company’s confidence in its European prospects, noting that it is now ready to move forward with plant planning.
Back in March, Changan announced its intention to launch EVs in 10 European markets—including Norway, Germany, the Netherlands, and the UK—by 2025. Sales in the UK are scheduled to begin this year, with the first deliveries of the Deepal S07 expected in September.
Industry analyst Felipe Munoz estimates Changan’s global sales in 2024 at around 2.2 million units, ranking the automaker 16th worldwide. Thomas revealed that overseas sales have already reached 600,000 units this year, with a target of 1 million for 2025.
Changan is not alone in its aggressive push into the European market. BYD is currently building an EV plant in Hungary, while Chery plans to form a joint venture with Spanish firm Ebro to begin local production. On July 2, Geely announced the launch of its namesake brand in the UK, starting with the all-electric EX5 SUV.
As the European Union moves to impose higher tariffs on Chinese-made EVs, local production has become a key strategy for Chinese automakers to navigate trade barriers, strengthen brand presence, and build more resilient supply chains.
Changan’s latest move underscores a broader shift among Chinese automakers—from export-oriented strategies to localized operations—as they seek to compete on a global stage under increasingly complex regulatory and competitive conditions.
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