According to Reuters, on June 13, a senior executive from Chery Automobile, one of China's largest car exporters, stated that the company expects its production plans in Europe to help offset the impact of the European Union's increased import tariffs on Chinese-made electric vehicles.
On June 12, the EU announced that it would impose additional tariffs of up to 38.1% on electric vehicles imported from China. The next day, Zhang Jian, Chery Automobile's Vice President and President of European Operations, emphasized in an interview that although this policy will have some impact on the company's export business, producing Chery cars locally in Europe will help mitigate some of the effects of the increased tariffs.
Under the EU's policy, Chery Automobile's products exported to Europe will be subjected to a 21% tariff. Despite the EU's tariff challenges, Chery Automobile remains "determined" to advance its expansion plans in Europe. Previously, Chery had already been laying the groundwork in the European market. In a briefing, Zhang Jian stated that Chery Automobile expects to begin producing electric vehicles at its recently acquired factory in Barcelona, Spain, by the end of this year. This will be Chery's first production base in Europe.
Zhang Jian further indicated that the Barcelona factory will not be sufficient to meet Chery Automobile's mid-to-long-term plans in Europe, adding that the company is considering the location for a second factory in Europe to further expand production capacity and market share. However, he declined to provide specific details.
In addition to the Barcelona factory, Chery Automobile is also seeking partnerships with other regions in Europe. In March of this year, Chery announced that it would start selling Omoda and Jaecoo brand cars in Italy in the third quarter, marking its official entry into the Italian market, which will be its second European market.
Chery Automobile is among several Chinese automakers looking to expand their business in Europe. With domestic automotive demand slowing, Chery, along with its competitors BYD and Great Wall Motors, is considering establishing manufacturing and assembly plants in Europe to increase the sales of low-cost cars, thereby enhancing their competitiveness and influence in the European market.
