When we think of Europe’s automotive heartland, we usually think of Germany. But Chinese carmakers appear to have a different destination in mind. Several Chinese automotive brands are now putting down manufacturing roots in Spain, turning the country into what could become China’s primary production base inside the European Union.
The most advanced project belongs to Chery. The Chinese automaker has partnered with Spanish brand Ebro to revive a former Nissan factory in Barcelona. The joint venture plans to begin production at the site in late 2026 or early 2027, with ambitions to produce up to 150,000 vehicles annually by 2029.
And they aren’t the only ones. It was recently announced that MG owner SAIC is preparing to build its first European factory in Galicia, while Geely has also expanded its footprint through agreements involving existing Spanish automotive facilities.
Interestingly there’s one brand that doesn’t fit this bill, and it’s China’s darling EV company, BYD. They’ve built their factories in Hungary and Turkey, though they’re reportedly seeking major European production capacity by 2028, so don’t rule out a new Spanish base for them too soon.
The Dao view: Why China’s carmakers choose Spain
It’s largely about tariffs and infrastructure. Spain already has one of Europe’s largest automotive industries. Entry here comes with experienced workers, established suppliers and modern logistics infrastructure. Lower labour costs than many northern European markets sweeten the deal. Then there’s the fact it’s well connected to the rest of Europe via seaports: easy access to markets across the continent.
Brussels’ import duties on Chinese-made electric vehicles, then mean producing cars inside the EU has become an increasingly attractive option. Manufacturing in Spain allows Chinese brands to move closer to customers, while reducing some of the political and commercial risks associated with importing vehicles from China.
The bigger story here is that Chinese automakers are no longer approaching Europe purely as an export market. Instead, they are starting to sink investment into projects that will embed them in Europe’s industrial landscape. For Spain, this promises jobs and industrial renewal. For China’s carmakers, Spain promises a foothold inside one of the world’s most competitive automotive markets.
