Current plans for Chinese factories to set up in Europe
- Details
Current plans for Chinese factories to set up in Europe
Even before the introduction of surcharges on imported electric cars from China, several Chinese automakers announced plans to expand into the European market through assembly plants to be built or acquired. Here are the confirmed or ongoing projects:
1. BYD is completing construction of its Hungarian plant in Szeged , which is expected to roll out its first models next fall. Four different models for the European market could be assembled at this plant in 2026-2027, including the Dolphin Surf (B segment). A second plant is planned in Turkey, and a third is reportedly under consideration in Italy.
2. Chery has been using the former Nissan plant in Barcelona (Spain) since the end of 2024. Several models for the European market are assembled there, under the Ebro and Omoda brands.
3. MG of the SAIC group is the leading Chinese seller in Europe . This carmaker therefore plans to manufacture its models for the European market in Europe. It is actively looking for a production site, and Spain is apparently the favorite.
4. Geely plans to assemble its Smart and Polestar models in Europe for the European market. Its choice could fall on Hungary, the Czech Republic, or Slovakia. According to the latest news, Slovakia has been chosen. The plant is expected to open in 2028.
5. Dongfeng has still not abandoned its plan to produce cars in Italy . And Nissan is opening the doors of its British plant to it.
6. Xpeng plans to assemble its models in Europe . This carmaker could take advantage of its ties with VW to use some of its factories, particularly those that VW plans to close (Osnabrück and Dresden).
Russian car market has been falling again since November 2024
- Details
Russian car market has been falling again since November 2024
- During the first five months of 2025, the Russian car market continues to sink into a deep crisis , marked by a drop in sales observed since November 2024 and a growing dominance of Chinese brands. Only 521,652 cars were registered in Russia between the beginning of January and the end of June 2025 (including 307,000 Chinese cars), which represents an annual rate of just over one million units over the whole year compared to 1.55 million in 2024 and 1.05 million in 2023. In conclusion, the Russian market has missed its restart after a very bad year in 2022 (0.7 million units) due to the outbreak of the Russo-Ukrainian war and a year 2024 full of promise. The Russian market had experienced much better years between 2017 and 2021, hovering around 1.6/1.8 million units per year during this period.
- Russia has increased its military spending significantly, thus reducing the resources dedicated to civilian development. Furthermore, the introduction of a new recycling tax by the Russian government on automobile purchases has added to high inflation and rising interest rates, which are slowing down purchases. Many customers are waiting for the return of foreign brands, which is further slowing sales. It is in this gloomy context that Chinese carmakers are capturing the largest part of the Russian market, with 59% of sales in the first six months of 2025. Four Chinese groups ( Chery , Great Wall, Geely , Changan) alone hold 51% of the Russian market. BYD is not among them because the electrification of the Russian market is still in its infancy.
- In summary, the Russian market is in a downward spiral, torn between its military spending and economic and geopolitical uncertainties, but it does not appear that economic sanctions have played a major role in this decline.
Volvo has chosen to manufacture part of the XC60 in the United States
- Details
Volvo has chosen to manufacture part of the XC60 in the United States
- In response to the threat of US tariffs on car imports from Europe, Volvo announced several months ago that it was considering increasing production in the United States, at its American plant in Ridgeville, South Carolina. This plant currently manufactures the all-electric Volvo EX90 (E-segment) and Polestar 3 (E-segment) SUVs, but with demand lower than expected, due to a sluggish electric market in the United States and the positioning of the two models being a bit too high-end, only 16,000 vehicles were produced at this plant for a capacity of 150,000 vehicles per year. Inovev had estimated that the best-selling Volvo models in North America could be produced at the Ridgeville site, such as the XC90 SUVs (39,492 units), XC60 (38,892 units), and XC40 (26,557 units).
- Finally, Volvo has just announced that an additional model produced at the Ridgeville site will indeed be the XC60 SUV for North American markets. The transfer of production of approximately 50,000 XC60s per year from Sweden to the USA will take place in the fall of 2026, that is, at the time of the launch of the new generation of the XC60 (which will be available in an all-electric version called EX60). It is possible that a second Volvo SUV will be added to the Ridgeville plant in 2028, and this could be the XC90 currently produced at the Swedish carmaker's site in Gothenburg.
- The consequence of this or these transfers is that the Swedish site in Gothenburg, the current production site for the XC60 and XC90, will lose between 50,000 and 100,000 vehicles per year, which will have an impact on the volume of vehicle production in Europe.
BEV market share in Europe (30 countries) over 7 months 2025
- Details
BEV market share in Europe (30 countries) over 7 months 2025
Mercedes could extend the A-Class's career until 2028
- Details
Mercedes could extend the A-Class's career until 2028
- Mercedes had hinted as early as 2023 that its A-Class (C-segment sedan) and B-Class (C-segment MPV) models would no longer be sold from the end of 2025 and that they would be replaced by the new CLA, which was unveiled in the first half of 2025, and by a hypothetical Smart #4, which has not yet been unveiled.
- However, the Mercedes A-Class – as the entry-level model in the carmaker's range – is still selling well in Europe , given the circumstances (34,000 units in the first 6 months of 2025, which could represent 65,000 units over the whole year), while the CLA marketed in Europe from the second half of 2025 is larger and more expensive than the A-Class. For its part, the Smart brand is having difficulty establishing itself on the European market (and even on the Chinese market) due to a positioning deemed too high-end.
- According to internal sources, production of the A-Class (carried out at the Rastatt site in Germany) could therefore be extended until 2028, three years after the announced deadline. It seems that the idea of abandoning a popular model too early could be counterproductive, especially at a time when the electric transition is progressing less quickly than expected (particularly at Mercedes...). At the same time, Mercedes will focus its efforts on the new generation of CLA, GLA, GLB and on a smaller G-Class in order to restructure its compact range around more profitable models.
- On the other hand, the Class B, whose sales have become marginal (7,000 sales in the first 6 months of 2025), could be discontinued as planned at the end of 2025.
Inovev platforms >