Changan Automobile, one of China’s largest state-owned automakers, is accelerating its push into Europe. The carmaker has confirmed its intention to build its first manufacturing facility on the continent as part of a broader strategy to grow its electric vehicle footprint. The mounting trade barriers have persuaded the carmaker to localize operations.
“We are committed to being in Europe, making in Europe for Europe,” Nic Thomas, Changan’s European head of marketing, sales, and service, said during a recent test drive of the Deepal S07, the brand’s first battery-electric SUV for the region.
Speaking to the media outside London, Thomas confirmed that the automaker is weighing up potential locations for its European plant. Production is expected “before 2030.”
Europe is pivotal
The move aligns Changan with rivals BYD and Chery, which are also constructing European factories as the EU imposes additional tariffs on Chinese-made EVs, although negotiations are still ongoing.
BYD is building an EV plant in Hungary, while Chery will assemble cars in Spain with its joint venture partner Ebro. Unlike some competitors, however, Changan is determined to handle its European expansion independently, moving away from its historic joint venture playbook with partners like Ford and Mazda in China.
Changan, which ranked as the world’s 16th-largest automaker last year with sales topping 2.2 million vehicles, aims to boost overseas deliveries from 600,000 units in 2023 to 1 million this year.
Europe is seen as pivotal to this growth. Under its ‘Vast Ocean Plan,’ launched in 2023, the company aims to expand its international footprint through localized production, enhanced supply chain efficiency, and region-specific models.
Expanding infrastructure
In March, Changan launched its CHANGAN, Deepal, and premium Avatr brands in Germany. The company now operates a European headquarters in Munich and, few are aware, a design center that dates back to 2006, located in Turin, Italy.
It is also setting up a spare parts warehouse in the Netherlands as it builds a retail network expected to grow from about 100 dealerships in 2025 to more than 1,000 by 2030.
Its European debut model, the Deepal S07, is a mid-size all-electric SUV priced at €45,000. It’s positioned to compete with volume sellers like the Tesla Model Y and Skoda Enyaq.
The S07 offers a 475 km WLTP range from an 80 kWh battery, but lags behind some rivals with its limited 93 kW DC charging capacity. Still, Changan is betting on design flourishes, generous standard equipment, and intelligent in-car tech to stand out.
Eight models
Changan’s roadmap includes launching eight models by 2027, blending battery-electric, plug-in hybrid, and range extender powertrains. The Deepal S05 compact SUV will follow this year, with the larger Changan E07 and Avatr 11 and 12 models — promising faster charging and longer ranges — slated for later. The E07 will adopt an 800 V architecture and aims for a 520 km range with rapid charging that adds 260 km in 15 minutes.
During the European premiere in Germany, Chairman Zhu Huarong emphasized: “We’ve consistently learned from Europe — a hub of innovation and home to some of the world’s leading automotive companies.” Changan is also a partner to Mazda, which builds its all-electric 6e on the architecture of the Deepal SL03.
