China radar: auto expansion into Europe via localisation

Chinese car share in Europe >10%; Chery/BYD/SAIC/Geely build or buy capacity to bypass EU tariffs.

In Q2 2026 the standout auto trend is rapid Chinese brand growth in Europe. In May their regional market share first exceeded 10%; nearly 25% in new hybrids.

Country radar signals (China export models): • Chery: Europe sales +322% in April; possible capacity expansion including a Nissan Sunderland (UK) line. • BYD: UK EV market leader (+124% YoY); talks on a Dresden site; ~3,000 own EU charging stations planned for 2026. • SAIC (MG): first European plant in NW Spain (Galicia) — ~€200m, ~120k vehicles/year by 2028, up to 70% local content for EU rules of origin. • Geely: interest in a Ford Valencia shop; US barrier workarounds via Volvo (South Carolina) as a next-stage hypothesis.

Canada: after cutting the Chinese EV tariff to 6.1% (quota), showroom and hiring activity surged (BYD, Zeekr, Chery).

Market Entry Readiness takeaway: Chinese OEMs scale “export → local manufacturing → local infrastructure (charging)” wherever tariffs and origin rules block pure imports. For teams partnering with China, this is a trade-barrier playbook, not only a product story.

Source: Global Business Monitoring, issue 2/2026 (HSE Faculty of World Economy and International Affairs). Adapted for Corporate APAC Desk / Country radar.