Chinese Automakers Seek European Production Sites as EU Weighs Local Content Rules, BYD Adviser Says

RegulationIndustry
โดย ロイター·EUCN·Read original
Summary · why it matters

Chinese automakers are scouting locations for production bases in Europe after the EU signaled it will introduce local content requirements. Alfredo Altavilla, BYD's adviser for Europe, told Reuters at the opening ceremony of a Denza premium brand dealership in Turin, Italy, that companies are focusing their efforts on inspecting existing auto assembly plants, which can start production faster than building factories from scratch. The European Commission is drafting a "Made in Europe" policy that favors industrial parts and products made within the bloc, and is expected to set minimum local content thresholds for EVs sold in the region, possibly as early as next year. BYD aims to acquire existing plants, take full ownership and then retrofit them; its first European passenger car plant in Hungary is in the early stages of production, and the company is expected to select a second European site within the year. Altavilla said that to grow while meeting EU regulations, BYD will eventually need "three assembly plants and one battery plant" in Europe, adding that Spain and France offer "clearly simpler situations" and are the "most feasible" options. Italy is a "second-best" choice because Stellantis is reluctant to sell plants, he said. Chinese manufacturers have already begun partnerships to share production lines at underutilized European plants: Leapmotor is teaming up with Stellantis in Spain, Dongfeng Motor with Stellantis in France, Geely with Ford Motor in Spain, and Chery has bought a plant in Spain previously owned by Nissan.

Impact on stocks 8

Electrification & Mobility▲ · 6 stocks
Geely Automobile Holdings Ltd
0175
▲ PositiveDemandrelevance

Geely is named as partnering with Ford to share production lines at an underutilized plant in Spain, expanding its European production footprint.

Zhejiang Leapmotor Tech Co
9863
▲ PositiveDemandrelevance

Leapmotor is teaming up with Stellantis in Spain to share production lines, advancing its European manufacturing presence.

Chery Automobile Co Ltd
9973
▲ PositiveDemandrelevance

Chery has bought a plant in Spain previously owned by Nissan, establishing European production capacity.

Stellantis NV
STLA
± MixedCompetitionrelevance

Stellantis is teaming with Leapmotor in Spain and Dongfeng in France, but is reluctant to sell plants to Chinese automakers like BYD.

Ford Motor Company
F
± MixedCompetitionrelevance

Geely is partnering with Ford on production lines at a Ford plant in Spain, a passing mention with no clear positive or negative for Ford.

Others▲ · 2 stocks
BYD Co Ltd Class A
002594
▲ PositiveRegulationrelevance

BYD adviser says the company is scouting European plants and will need three assembly plants plus a battery plant in Europe to meet EU local content rules.

Dongfeng Automobile Co Ltd
600006
± MixedRegulationrelevance

Named as partnering with Stellantis in France to share production lines, a response to EU local content rules; no new development specific to Dongfeng.

Theme Impact 3

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