Changan Considers Local Production in Spain to Support EU Expansion

Changan, according to industry reports, is considering Spain-based production to reduce EU EV tariffs while expanding its electric SUV lineup and dealer network. Learn more.

Changan has only just begun its European expansion, yet the company is already looking ahead to local production as a way to strengthen its long-term position. Spain has emerged as a leading candidate, a move that would help Changan mitigate the impact of EU countervailing duties on electric vehicles imported from China and accelerate its regional growth.

At the same time, the Chinese automaker is rolling out its first electric models in Spain, introducing the Deepal S05 and Deepal S07. Positioned in the affordable, technology-focused SUV segment, these two models are expected to form the backbone of Changan’s initial European offering. Over the next three years, the company plans to launch eight models, build a dealer network of around 80 outlets, and gradually expand its brand portfolio with Deepal, followed by Nevo and later Avatr.

Spain’s appeal goes beyond market entry. The country has become a focal point for Chinese automotive and battery investments in Europe, with projects from players such as Chery and CATL highlighting its industrial attractiveness. Existing manufacturing infrastructure and an established automotive supply base make Spain a practical option for local assembly.

One scenario under consideration involves using existing production facilities, including Ford’s Almussafes plant, which has been operating well below full capacity in recent years. Leveraging such infrastructure could significantly shorten the timeline for launching local production compared with building a new factory from scratch. Alternatives being assessed include constructing a dedicated plant or acquiring European assets.

Looking further ahead, Changan plans to invest around €2 billion in Europe by 2030. After-sales operations will play a central role in this strategy, with logistics and spare parts distribution organised in partnership with Kuehne+Nagel, covering multiple European markets.

As competition among Chinese manufacturers intensifies and trade conditions in the EU remain challenging, Changan is moving quickly to localise its operations and secure a foothold in Europe’s affordable, tech-driven electric vehicle segment. The pace at which these plans turn into concrete production will largely depend on the company’s chosen localisation model and its ability to execute partnerships on the ground.