Chinese Companies in Europe — 2026-10-18
BYD confirmed mass production at its Szeged, Hungary plant will begin in Q4 2026, marking a critical shift from export to local manufacturing amid tightening EU trade rules. Meanwhile, the European Union signaled plans for new trade powers to potentially block Chinese imports entirely, while Chinese automakers like BYD and AITO used the Paris Motor Show to aggressively pitch premium EVs to European consumers.
Chinese Companies in Europe — 2026-10-18
Top developments
BYD
BYD Executive Vice President confirmed that mass production at its new Szeged factory in Hungary will launch in the final quarter of 2026. This facility is central to BYD’s strategy to transform from a Chinese exporter into a Europe-based producer, aiming to comply with emerging local-content rules. The move is part of a broader plan to establish four plants in Europe long-term, with France currently on the shortlist for the next site.
Chinese Automakers (Paris Motor Show)
At the Paris Motor Show, Chinese automakers made a tech-led pitch for Europe’s premium car market, showcasing advanced EVs and hybrids to challenge established European brands. Despite EU efforts to curb low-cost imports, the influx of Chinese vehicles shows no signs of slowing, with manufacturers like BYD, AITO, and Li Auto highlighting high-end features and connectivity.
EU Commission
EU leaders have put China on the agenda of their 15-16 October summit, with the Commission expected to seek final clearance for new barriers against Chinese imports. Brussels is preparing trade powers that could completely shut off access to the single market to cut the trade deficit, signaling a hardening stance against what it views as unfair state subsidies.
Deals, expansion & investment
BYD Workforce Growth: BYD expects its European workforce to exceed 40,000 employees by 2030 as it expands local production and dealership networks. The company is actively exploring the use of rivals’ idle factories in Europe to accelerate capacity growth ahead of stricter EU import restrictions.
Stellantis & Chinese Partnerships: Stellantis CEO Antonio Filosa stated that sharing factory capacity with Chinese partners could help keep European plants open. The automaker is betting on these partnerships to avoid closures while investing in new platforms and local battery production to remain competitive.
Regulation & market context
UK EV Tariff Alignment: The UK government has left the option open to impose Chinese EV tariffs if it joins the EU’s "Made in Europe" scheme. This follows France dropping its opposition to the British role in the package, with Beijing warning against what it calls "discriminatory" steps.
Hybrid Export Curbs: China’s deal with the EU to curb hybrid vehicle exports is impacting Chinese EV makers who had ramped up hybrid shipments to bypass EU tariffs on pure EVs. SAIC Group, owner of MG, remains the hardest hit by existing duties, facing a 35.3% tariff rate.
On the radar
- BYD ATTO 8 Premiere: The new seven-seater BYD ATTO 8 made its premiere in Paris, with plans to reach the European market in 2027.
- EU Safeguard Tariffs: The EU is weighing safeguard tariffs if China refuses agreed-upon hybrid car limits, with discussions on voluntary export restraints ongoing.
- Changan Battery Expansion: Changan and CATL are expanding their battery joint venture to 75 GWh, strengthening Chinese supply chain dominance in Europe.
By the numbers
- 40,000: BYD’s projected European workforce by 2030.
- 35.3%: Tariff rate imposed on SAIC Group (MG) by the EU.
- 75 GWh: Total capacity of the Changan-CATL battery joint venture.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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