Chinese Automakers Capture Over 9% of European Market in Early 2026, Plan Local Factories Amid Tariff Tensions

Chinese automakers extended their European footprint in early 2026, capturing more than 9% of all new car registrations in the EU, UK and EFTA between January and April, according to data from the European Automobile Manufacturers’ Association (ACEA) released June 2. Brands owned by Geely, SAIC, BYD and others leveraged competitive pricing and advanced EV technology to challenge local legacy players. The gains have fueled trade tensions, with Brussels maintaining tariffs on Chinese-made EVs. In response, companies are moving production to Europe. BYD aims to localize all EV output for the continent by 2028, while SAIC announced a planned factory in Spain with an initial investment of €200 million ($233 million). Chery began preparing to build up to 30,000 vehicles at a former Nissan plant in Barcelona via a joint venture. Leapmotor and Stellantis deepened their tie-up to begin joint manufacturing in Spain, and Xpeng entered talks with Volkswagen to purchase an existing plant. Geely, already Europe’s largest Chinese carmaker via Volvo and other brands, reportedly bought part of a Ford factory in Valencia, underscoring the sector’s rapid shift to local production to mitigate trade barriers.