Chery’s Electric Car Production Facility in Spain: A Step Toward International Competition or a Barrier to Growth?

Chery’s decision to establish an electric car production facility in Spain has brought both opportunities and challenges for the country. The Chinese automobile manufacturer will invest around 400 million euros in the project, with most of the costs covered by state and regional funding programs. This investment is expected to create 1,250 new jobs and potentially help Spain become a gateway for Chinese electric models in Europe.

However, the move has also sparked criticism from the Spanish automobile industry. The head of Anfac, an umbrella organization representing Spanish automobile manufacturers, resigned in protest against government policy. The association cites lack of support from the government for its members’ transition to electric cars as a reason for its resignation. Despite this setback, Chery remains committed to producing electric versions of its SUV model Omoda 5 at a factory site that was previously used by Nissan in Barcelona. By 2027, the company plans to produce 50,000 vehicles annually, adding to the growing trend of Chinese car manufacturers establishing production facilities in Europe.

The increase in European protective tariffs has prompted many companies to reevaluate their manufacturing strategies in the region. While some view these tariffs as protectionist measures aimed at safeguarding local industries, others see them as barriers that limit growth opportunities for foreign companies looking to enter new markets. As such, it remains to be seen how successful Chery’s venture will be and whether it will lead to increased competition or cooperation between Chinese and European automakers.