As the European Commission plans to impose stricter trade barriers on imported electric vehicles from China, an increasing number of Chinese car manufacturers are considering establishing production bases in Europe to circumvent these restrictions. Following BYD and Chery, Geely has announced its plans to build a factory in Poland, showcasing the adaptability and flexibility of Chinese automakers in responding to international trade challenges.
According to a Reuters report on September 11, Geely Auto Group's Vice President Li Chuanhai stated during the Frankfurt Auto Show that the company is actively seeking locations to establish a factory in Europe, although the exact site has not yet been “100%” confirmed. In June of this year, Poland's Ministry of State Assets had discussions with Geely Holding Group regarding the potential establishment of its first electric vehicle factory in Poland. This move is not only aimed at expanding Geely's footprint in the European market but also at addressing the growing trade barriers imposed by the EU.
As one of the pioneers among Chinese automakers, Geely entered the European market back in 2019 through its premium brand Lynk & Co., gradually opening experience stores in countries such as the Netherlands, Sweden, Germany, Italy, and Spain, attracting over 200,000 subscription members. In the coming months, Lynk & Co. will launch its first all-electric model, the Lynk & Co. Z10, and plans to produce it in Europe. Geely's Zeekr brand is also actively expanding its presence in Europe, aiming to become a leader in the region’s electric vehicle market by 2030.
However, the EU's recent trade policies, particularly the imposition of countervailing duties of up to 36.3% on electric vehicles imported from China, present new challenges for Geely and other Chinese automakers' market strategies. Despite a 24.3% increase in Geely's overseas sales, the ongoing trade disputes between China and the EU undoubtedly threaten its future development in Europe.
It is noteworthy that, despite these barriers, such measures are undoubtedly shortsighted. Chinese electric vehicle manufacturers like Geely are actively adapting to market demands and committed to improving product quality and technology levels. In the ongoing transformation of the global automotive industry, if the EU continues to resist advanced electric vehicles from China, it risks losing excellent competitors and missing opportunities for collaboration with Chinese companies.
In fact, as the world's largest electric vehicle market, China has taken the lead in technological innovation and industrial scale. If the EU continues to strengthen trade barriers, it may not only fail to curb the rise of Chinese electric vehicles but could also prompt more companies to seek alternatives, accelerating the layout of Chinese automakers in Europe. As demonstrated by Geely's newly established European testing base in Frankfurt, the company is focusing not just on production but also on adaptive testing and market validation to better meet local needs and regulations.
Overall, Geely's plan to set up a factory in Poland is not only a direct response to the EU's trade barriers but also reflects the continuous adaptation and transformation of Chinese automakers in the global market. If the EU continues to approach the Chinese electric vehicle industry with a protectionist mindset, it will undoubtedly affect its competitiveness and market share in the global automotive market. In this context, establishing an open trade environment and promoting international cooperation is the wiser choice.