Chinese Automaker Chery Launches EV Production in Spain Amid Growing European Cooperation
The EBRO S700 model debuted during a launch event in Barcelona, Spain, on November 23, 2024.
A new chapter has begun in the transatlantic automotive industry: Chinese car manufacturer Chery has launched production of its first model in Spain, a move that signals growing collaboration between Europe and Asia, despite recent trade tensions.
The groundbreaking event took place on November 23rd in Barcelona, with the unveiling of the EBRO S700, a product of Chery’s joint venture with Spain’s EV Motors.
"This collaboration is exemplary for future joint ventures between Chinese and Spanish companies," said Jordi Hereu, Spain’s Minister of Industry and Tourism during the event, expressing hope for deeper cooperation between the two nations. This joint venture, established in April 2024, is projected to create over 1,250 jobs and produce an impressive 150,000 vehicles by 2029.
Chery’s Spanish foray comes at a time when Chinese electric vehicle (EV) manufacturers are making significant strides in the European market, despite facing challenges such as high tariffs imposed by the European Union. BYD, another major Chinese EV maker, announced plans for a new production center in Hungary in 2023, slated to begin operations in 2025.
Additionally, a strategic partnership between Stellantis, a Netherlands-based automotive giant, and China’s Leapmotor demonstrates the growing interconnectedness. This joint venture grants exclusive rights to Leapmotor to export, sell, and manufacture vehicles outside of China.
Beyond car production, Chinese-European collaboration extends to critical segments of the EV supply chain, including lithium battery production. CATL, the world’s leading electric battery manufacturer, has already established two factories in Europe. After its first German factory commenced operations in 2023, a second CATL plant is set to open in Debrecen, Hungary, in 2025.
NIO and XPeng, two prominent Chinese EV makers, are also making their mark on the European market. They are not only selling vehicles but also establishing research and development centers, building a network of charging stations, and providing after-sales service. These initiatives are creating numerous job opportunities across Europe.
Zhang Xiang, secretary general of the International Intelligent Vehicle Engineering Association, highlighted the complementary nature of the Chinese and European automotive industries, stating, “European automakers excel in technologies for making internal combustion vehicles, while Chinese companies lead in developing advanced EV-related technologies. By combining their strengths, Chinese and European companies could accelerate EV development and reap significant rewards in the global shift toward new energy solutions."
Navigating Tariff Tensions
While collaboration thrives, the road ahead isn’t without its bumps. In October 2024, the European Union implemented tariffs of up to 45.3% on EVs imported from China, prompting criticism from China. The Chinese Ministry of Commerce called the EU’s anti-subsidy investigation into Chinese EVs "unreasonable and non-compliant," accusing the EU of using "fair competition" as a guise for protectionist practices.
Negotiations between the two sides are underway, with a potential agreement on the horizon. This potential agreement could involve establishing minimum selling prices for Chinese EVs in the European market.
“Some progress has been made” according to a spokesperson from the Chinese Ministry of Commerce, who emphasized that discussions are ongoing.
Despite trade tensions, Spain’s independent approach to EVs, renewable energy, and agriculture offers a positive example. Pan Deng, an associate professor at China University of Political Science and Law, believes, "This shift not only aligns with Spain’s national interests but also offers valuable insights for other EU countries. Spain’s actions could ‘encourage the EU as a whole to adopt a more rational approach’ in its trade and economic interactions with China."
Moreover, several major European automakers, including Mercedes Benz, have publicly opposed the EU’s decision to impose tariffs on Chinese EVs.
"We need to be successful in China to be even more successful in the world," stated Ola Kaellenius, chairman of the board of management of Mercedes Benz, in a recent interview with Xinhua News Agency. Highlighting the value of Chinese investment in Europe, Kaellenius emphasized, “Levying tariffs ‘ is the wrong way to go, because we believe it stifles growth, it stifles innovation, and it does not create a win-win situation for everybody.”
This burgeoning cooperation between China and Europe promises to reshape the global automotive landscape, ultimately impacting consumers on both continents.
## Expert Interview: Chery’s Spanish Expansion and the Future of Chinese-European Auto Collaboration
**World Today News** secured an exclusive interview with **Dr. Anna Schmidt**, a leading expert on the global automotive industry and globalization at the Institute for Automotive Studies in Berlin, to discuss Chery’s recent EV production launch in spain.
**World Today News:** Dr. Schmidt,Chery’s launch of the EBRO S700 in Spain marks a important progress. What are the key implications of this move?
**Dr. Schmidt:** This is undoubtedly a major milestone. It signifies two key trends: the rising prowess of Chinese automakers in the global market, and the growing willingness of European nations to collaborate with China, even amidst trade tensions. Chery’s investment in Spain demonstrates confidence in the European market and signifies its ambition to become a key player, not just in EVs, but in the wider automotive landscape.
**World Today News:** Some see Chery’s move as a testament to the attractiveness of European manufacturing.What factors contribute to this appeal?
**Dr. Schmidt:** Several factors make Europe attractive. Firstly, it boasts a highly skilled workforce and strong automotive manufacturing infrastructure. Secondly, there’s a strong consumer base with a penchant for high-quality vehicles. European regulations are becoming increasingly stringent regarding emissions, pushing the adoption of EVs, which plays into the strength of Chinese manufacturers like Chery.
**World Today News:** While Chery’s venture is promising, China’s auto industry faces obstacles entering the European market, including trade barriers. How will these challenges be navigated?
**Dr. Schmidt:** Trade tensions are undoubtedly a hurdle, but both China and Europe have a vested interest in finding solutions. Joint ventures like the one between Chery and EV Motors are a good example – they allow for technology transfer and shared investment, benefiting both sides. We may also see strategic partnerships focusing on specific areas like EV battery production, where china has a clear advantage.
**World Today News:** beyond Chery,we’re seeing a trend of increased collaboration between chinese and European automakers,with companies like BYD and Leapmotor making significant moves. What does this foreshadow for the future?
**Dr. Schmidt:** This trend is likely to accelerate.European automakers are facing pressure from new entrants and the rapid pace of technological innovation. Partnering with Chinese companies provides access to cutting-edge EV technology and perhaps reduces R&D costs. We can expect to see more joint ventures, technology sharing, and even cross-ownership in the coming years, leading to a more interconnected global automotive industry.
**World Today News:** Dr. Schmidt, thank you for sharing your valuable insights.
**Dr. Schmidt:** My pleasure.It’s an exciting time for the automotive industry, and these developments will continue to reshape the global landscape.
**this interview sheds light on the evolving dynamics in the global automotive industry and highlights the increasing meaning of Chinese-European cooperation in the EV sector.Only time will tell how this evolving landscape will ultimately unfold.**
