On July 3, Gasgoo noted that according to Reuters, Chinese automaker Changan Automobile plans to build a factory in Europe to support its future sales in the European market.
On July 2, Nic Thomas, head of marketing, sales and service at Changan Automobile’s Europe, told Reuters that it is currently evaluating potential plant locations.
In fact, Changan Automobile’s planning for Europe and other overseas markets is not surprising, and it is closely in line with Changan’s long-term global strategic layout.
Established car companies take the lead in breaking the game to open up the European market
It is not uncommon for vehicles to go overseas, but what is strange is which market the vehicle is exported to.
Europe has always been regarded by many domestic car companies as an important overseas strategic market that must break through. Changan is no exception.
However, it is worth noting that the accumulation of some funds is not strongNew energyFor car companies, building factories overseas, especially in Europe, will be under huge cost pressure.
At present, relatively speaking, traditional domestic car companies can bear such pressure.
It is reported that Changan Automobile is another Chinese automaker to enter the European market after BYD and Chery. Due to the EU’s interest in ChinaElectric vehicleTariffs have been imposed, and both BYD and Chery have announced plans to localize production in Europe.
In March this year, Zhu Huarong, Secretary of the Party Committee and Chairman of Changan Automobile, started the European brand launch conference with the theme of “Sharing the Future” with the German phrase “Guten Tag” (hello).
This press conference seems to only display 9 models of Changan, Deep Blue and AVATAR, but it goes beyond the scope of product display, and is actually disclosing the strategic plan for the layout of the European market.
Recently, Changan Automobile announced its sales data for the first half of 2025, which hit a new high in nearly 8 years with 1.355 million units. Among them, in the first half of 2025, itsNew energy vehiclessales reached 450,000 units, a year-on-year increase of 48.8%. Specifically, the global delivery volume of Deep Blue Automobile exceeded 500,000 units; Avita has sold more than 10,000 yuan for 4 consecutive months; The cumulative delivery of Changan Qiyuan Q07 models exceeded 20,000 units.
It is worth noting that Changan Automobile’s overseas sales exceeded 300,000 units, a year-on-year increase of 49%.
Source: Changan Automobile Weibo
Gasgoo quoted Reuters as saying that automotive industry analyst Felipe Munoz said that Changan Automobile ranked 16th among global automakers with sales of more than 2.2 million units in 2024. Nic Thomas pointed out that Changan Automobile sold 600,000 vehicles in markets outside of China last year, and this year it aims to exceed 1 million vehicles.
Only by building a factory can we reflect the determination to cultivate deeply
In fact, Changan Automobile’s exploration in overseas markets has already started, and in the early days, it mainly tested the water temperature of different regional markets around the world through vehicle exports. Subsequently, it actively deployed in many countries around the world and gradually built its own overseas business network.
However, in recent years, the global trade situation has changed and is full of uncertainty. The EU has frequently launched countervailing investigations into the field of new energy vehicles, trying to build additional tariff barriers.
This is undoubtedly a huge challenge for Changan Automobile’s traditional vehicle export model.
Transported across the ocean to Europe in the form of a complete vehicle, the transportation cycle is long, there are many variables on the way, and the transportation cost remains high. More importantly, under the influence of tariff policies, the terminal price of vehicles may increase significantly after they arrive in the European market, thereby weakening the competitiveness of products in terms of price.
In this case, building a factory in Europe can effectively avoid high tariffs, reduce transportation costs, and enhance Changan Automobile’s price competitiveness in the European market.
Changan Automobile’s plan to build a factory in Europe is a strategic decision made based on its accurate grasp of the development trend of the global automobile industry and its deep insight into its own development needs.
This decision is not only a stopgap measure to pursue sales increment or avoid tariff risks, but also a profound transformation of Changan Automobile from product “going out” to ability to “stick down”.