Chinese car manufacturers are finding creative ways to avoid EU import tariffs.
Local Components
Companies like Chery and EV Motors are partnering with European automakers and sourcing local components to classify their vehicles as "European-made."
This strategy circumvents the additional tariffs imposed by the EU on Chinese electric vehicles (EVs), according to a report by Digi24.
This year, EV Motors and Chery announced a joint venture to produce internal combustion, hybrid, and electric vehicles at a factory in Barcelona, Spain.
Local suppliers will significantly reduce import costs, said Rafael Ruiz, president of the Spanish firm.
"We’re carefully analyzing all details to ensure the vehicles are European," Ruiz explained.
Exempt From Tariffs
The joint venture aims to use locally produced parts, a crucial step in complying with EU regulations.
Chery’s electric flagship, the Omoda 5, is slated for production in Europe by October 2025. Ruiz expressed optimism that the model would be exempt from tariffs, as it will qualify as European-made.
Spain, Europe’s second-largest auto producer after Germany, is an attractive location for such projects due to its abundance of component suppliers.
The Barcelona plant will initially employ 200 workers across two shifts, with a third shift planned by February 2024. The workforce is expected to grow to 1,250 by 2026.
Ruiz highlighted the project’s ambitions. "We aim to become a benchmark in the industry and a success story," he said.
Chery, known for its combustion, hybrid, and electric vehicles, has launched its Omoda and Jaecoo brands in key European markets.
By the end of 2025, Chery plans to introduce three SUVs for each brand, offering various powertrain options.
