Chinese electric vehicles are beginning full-scale production in Europe, marking a strategic shift toward overcoming tariff barriers.

TechInsights reported on the 30th that China's leading electric vehicle manufacturers XPeng and BYD are actively shifting their strategic focus to local production in Europe in response to the European Union's imposition of anti-subsidy tariffs.

The two companies are said to be moving beyond simple export-focused projects and building production infrastructure tailored to the European market.

From the end of 2024, the European Union has decided to impose a semi-subsidy tariff of up to 38.1% on Chinese electric vehicles.

Xiaopeng will be subject to an additional tariff of 20.7%, and BYD will be subject to an additional tariff of 17.0%, which, combined with the existing 10% import tax, will have a significant impact on their price competitiveness.

Accordingly, the two companies are pursuing a strategy to overcome tariff barriers through local production in Europe and establish long-term brands.

Xpeng has formed a strategic partnership with Austria's Magna Steyr and is producing the G6 and G9 SUV models in a semi-knit (SKD) manner in Graz.

By quickly establishing a production system that meets European regulations while reducing the initial investment burden, the company plans to expand its production line to include sedans, compact SUVs, and hybrid models in the future.

rainYadi has begun building its own production infrastructure, including opening a new factory in Hungary and setting up an assembly line in Turkey next year.

With the goal of producing all vehicles sold in Europe locally by 2028, the company plans to launch three to four plug-in hybrid models within the next six months, followed by a high-end electric vehicle model in 2027.

The two companies' strategies go beyond simple tariff avoidance and are a stepping stone for sustainable growth in the European market.

Through local production, we are strengthening regulatory compliance, enhancing consumer confidence, reducing logistics costs, ensuring supply chain stability, and even contributing to local communities and creating jobs.

From the perspective of European consumers, the new option of a "Chinese brand but European-made vehicle" is generating positive expectations in terms of quality and service accessibility.