Chery’s joint venture plant in Spain marked a significant milestone on November 23 as the first vehicle, the S700 under EV Motors’ Ebro brand, rolled off the assembly line. This development comes as Chinese car manufacturers are increasingly looking to expand production overseas to mitigate risks such as tariffs.
The joint venture plant, located in Barcelona, is a collaboration between Chery and Spain’s EV Motors. The successful production of the S700 signifies the beginning of a new era for both brands. In April, Chery announced its partnership with EV Motors to establish a joint venture aimed at manufacturing new models under the Chery and Ebro brands.
Initially, production at the plant is set to focus on models like the Omoda, with plans to reach an annual production capacity of 50,000 units by 2027 and 150,000 units by 2029. This venture marks Chery’s first production base in Europe and positions the company as the first Chinese automaker to commence passenger car production in Europe.
In a similar move, Chery’s Chinese counterpart, BYD, announced its plans to build a new energy vehicle (NEV) plant in Hungary. The plant is expected to be operational within three years and will primarily produce passenger car models for the European market.
Chery and EV Motors are set to invest approximately 400 million euros in the Zona Franca plant, which was formerly a Nissan facility that ceased operations in 2021. EV Motors, founded in 1954, initially focused on producing agricultural vehicles and machinery before transitioning to electric vehicles in 2015. The company released the Ebro all-electric pickup truck in late 2022.
Chery’s export volume has been on an upward trajectory, reaching 937,148 vehicles in 2023, a 101.1 percent increase from the previous year. The company’s exports are primarily concentrated in regions such as Central Asia, South America, and the Middle East, with production sites scattered across South America, the Middle East, and Russia.
According to reports, Chery exported 73.67 percent of the 1,125,774 vehicles it produced in the first nine months of the year. The company is on track to surpass the 1 million unit export mark for the first time in its history.
In light of the European Commission’s decision to impose additional tariffs on imports of pure electric vehicles (BEVs) from China, Chery’s expansion into Europe holds strategic importance. The commission’s move follows Spain’s abstention in a crucial vote regarding tariffs on Chinese EVs.
As Chery continues to make strides in the global automotive market, its joint venture with EV Motors in Spain signifies a significant step forward in the company’s international expansion efforts. This partnership not only strengthens Chery’s presence in Europe but also underscores the brand’s commitment to innovation and sustainability in the automotive industry.
