On June 13, a senior executive from Chery Automobile, one of China's largest automotive manufacturers by export volume, stated that the company anticipates its production plans in Europe will help offset the impact of the EU's increased import tariffs on Chinese-made electric cars.

On June 12, the European Union announced an additional tariff of up to 38.1% on electric cars imported from China. The following day, Zhang Jian, Vice President and Head of Chery Automobile's European Operations, emphasized in a media interview that this policy would indeed impact their export business, but Chery vehicles’ local production in Europe would help mitigate some of the effects of the tariff increase.

According to EU policy, Chery Automobile's exports to Europe will be subject to a 21% tariff. Despite this tariff challenge from the EU, Chery remains determined to advance its expansion plans in Europe. The company had already established a presence in the European market prior to this development. Zhang Jian indicated in a briefing that Chery expects to commence production of electric vehicles at its recently acquired Barcelona factory in Spain by the end of this year, which will be its first production site in Europe.

Zhang Jian further indicated that the Barcelona factory alone would not suffice to meet Chery Automobile's medium to long-term plans in Europe. He added that Chery is considering the location for a second factory in Europe to further expand production capacity and market share. However, he declined to disclose specific details at this time.

In addition to the Barcelona factory, Chery Automobile is actively seeking partnerships in other regions across Europe. Earlier this year, in March, Chery announced plans to commence sales of its Omoda and Jaecoo brand vehicles in Italy starting in the third quarter. This move marks Chery's official entry into the Italian market, becoming its second European market presence.

Chery Automobile is among several Chinese automakers seeking to expand their presence in Europe. With domestic car demand slowing down, Chery, along with competitors such as BYD and Great Wall Motors, are contemplating the establishment of manufacturing and assembly plants in Europe. This strategic move aims to boost sales of low-cost vehicles in Europe, thereby enhancing their competitiveness and influence in the European market.