Hongqi explores European production through Stellantis facility

Chinese premium brand Hongqi, part of the state-owned FAW Group, is considering launching vehicle production in Europe through Stellantis’s facility in Spain. Talks are underway with Leapmotor, a company in which both parties have invested and which already serves as a technology and industrial bridge for entering overseas markets.

If a deal is reached, Hongqi could avoid the cost of building its own plant in the EU and speed up localization. The site in question is in Zaragoza, where Stellantis already plans to produce Leapmotor models. This creates ready-made infrastructure for scaling.

The strategy looks pragmatic: by 2028, Hongqi intends to introduce more than 15 electric and hybrid models in Europe and be present in at least 25 countries. The company also aims for global sales of 1 million vehicles per year, with no less than 10 percent coming from export markets.

Entering Europe through local production also helps minimize the impact of tariffs and political restrictions. In parallel, Hongqi is evaluating alternative locations, including Hong Kong, but a final decision has not been made yet.

For Stellantis, these talks are part of a broader strategy of cooperation with Chinese automakers. The group has already begun promoting Leapmotor models outside China and is discussing joint projects using Chinese platforms.

In practice, this represents a new model of expansion: Chinese brands are increasingly entering Europe not directly, but through partnerships with local manufacturers. This accelerates market entry and intensifies competition in the electric and hybrid vehicle segment, where pressure on European brands continues to grow.