Changan Automobile is accelerating its European push with new EV launches in Italy and Spain, positioning itself as part of China’s rising second wave of automakers targeting the region. With €2 billion committed to expansion and a plan for eight models within three years, the group aims to build a dealership network capable of challenging both traditional European manufacturers and early Chinese entrants. The move comes as European regulators intensify scrutiny on Chinese EVs, making Changan’s long-term strategy a test of competitiveness, pricing power and consumer acceptance.

Changan’s decision to enter two of Europe’s most competitive mass-market automotive regions marks a critical phase in its global strategy. As European consumers increasingly adopt electrified vehicles—but remain sensitive to price, brand reputation and post-sale service—Chinese manufacturers see an opportunity to leverage lower production costs and faster model cycles. Yet the road ahead is complicated by political pressures, intensifying tariffs and Europe’s slow recovery in EV demand.

A New Wave of Chinese Automakers Targets Europe

Changan joins BYD, Chery and other major Chinese groups that have already made inroads across Europe. Unlike the early entrants, which focused on a broad presence across major markets, Changan is taking a more deliberate approach—starting with fully electric models in Italy and Spain before introducing plug-in hybrid versions next year. This strategy reflects divergent consumer preferences across Europe, where Southern European buyers remain highly price-conscious and more hesitant to fully transition to electric vehicles.

The company has yet to outline specific sales targets for 2026, and executives acknowledge that demand in key markets like Italy will depend heavily on the timing of hybrid model availability. The addition of a smaller Q05 SUV, expected between late 2026 and early 2027, should bolster Changan’s portfolio in a segment where price competitiveness is crucial.

Long-Term Ambitions Backed by Heavy Investment

Changan is committing €2 billion to its European expansion, signaling a strategy designed not for rapid disruption but for sustained penetration. The company plans to launch eight models within three years and build a network of more than 1,000 dealers by 2030—an unusually aggressive target for a relatively new brand on the continent.

In Italy alone, Changan intends to establish around 100 dealers, underscoring its belief that local coverage and service infrastructure will be essential to building trust among European consumers. The company is also exploring opportunities in light commercial vehicles, a segment where Chinese automakers already enjoy strong momentum in global emerging markets.

Changan’s Vice President Klaus Zyciora emphasized that the group is “here to stay,” highlighting a strategy focused on convincing European customers of Chinese vehicle quality rather than competing solely on price.

A Growing Footprint Amid Rising Geopolitical Complexity

Changan’s expansion into Europe comes at a time when the region is weighing additional tariffs and trade actions against Chinese EV manufacturers. The broader backdrop includes intensifying U.S.–China tech and trade tensions and European concerns about market “overcapacity” in China leading to aggressive export behavior. These dynamics make Changan’s European entry not just a commercial strategy but a geopolitical test of how far Chinese automakers can expand into regulated Western markets.

Looking Ahead

Over the next several years, Changan’s performance in Europe will hinge on consumer reception, dealer execution, regulatory shifts and the company’s ability to adapt models to local demand. As Europe moves toward a slower but more stable electrification path, new entrants like Changan must prove they offer more than low prices—they must show durability, safety, and service capabilities strong enough to compete with entrenched brands.