- Hongqi could construct EVs in Spain at a Stellantis plant, fast-tracking its European enlargement.
- Its heritage might be a promoting level—or a legal responsibility—in Europe.
- Chinese language automakers are more and more utilizing EU factories to keep away from tariffs and scale sooner.
For years, European automakers have been apprehensive that it was solely a matter of time earlier than Chinese language manufacturers would flood the continent with low cost EVs inbuilt monumental factories again dwelling. However the plot thickened when a few of these Chinese language manufacturers weren’t content material with merely promoting vehicles in Europe. They wish to construct them there, too. The most recent challenger is Hongqi, the Chinese language luxurious model operated by FAW.
In contrast to another Chinese language automakers that need their very own crops to construct vehicles in Europe, Hongqi takes a special strategy. Reuters says it’s at present in talks with Stellantis to construct automobiles at one of many group’s Spanish crops as a part of a wider European enlargement plan. The talks are reportedly being dealt with by way of Leapmotor, the Chinese language EV maker through which each FAW and Stellantis are traders.
Hongqi isn’t simply one other Chinese language automotive model. Its identify interprets to ‘pink flag’ or ‘pink banner’ and has lengthy been related to state limousines for officers of the Chinese language Communist Celebration. It was based in 1958, and Chairman Mao Zedong thought of it China’s nationwide automotive model, so it has fairly completely different baggage in comparison with a lot newer Chinese language automotive manufacturers like BYD or Nio. It’s a bit extra political and a bit extra storied than all of the others.
Whether or not its previous will put Europeans off shopping for Hongqi-branded vehicles stays to be seen, however the model has huge ambitions for the continent, and the vehicles appear fairly good. The corporate needs to launch 15 electrical and hybrid fashions in Europe by 2028, and it hopes to exceed 1 million annual gross sales by 2030, with at the very least 10% coming from outdoors China.
Reuters notes that Hongqi needs to construct all of the vehicles it sells in Europe regionally, and at the very least a few of them might come out of the Stellantis manufacturing facility in Zaragoza, Spain. That’s the place Stellantis is reportedly going to construct its electrical SUV, collectively developed with Leapmotor. That model is already utilizing Stellantis services to assemble vehicles just like the T03 in Europe and circumvent the import tariffs imposed by the European Union on China.
Hongqi might additionally use a Leapmotor platform for its European automobiles after the 2 struck a platform provide deal final 12 months. Reuters quotes an unnamed insider with data on the matter, who stated: “This was the way in which that Hongqi can begin European manufacturing rapidly. Hongqi is utilizing that community to realize a producing base by way of Leapmotor and Stellantis.”
