Infographic: China, Europe drive deeper automotive cooperation

(AI-assisted Creation)

In October, Stellantis began producing the Leapmotor B10 at its Zaragoza facility in Spain through its partnership with Chinese electric vehicle (EV) maker Leapmotor.

The factory had been running at roughly half capacity, a far cry from its peak output of about 470,000 vehicles in 2019. Stellantis needed to fill its production lines; Leapmotor needed a European base. Neither side called it a favor.

The arrangement exemplifies deepening cooperation between China and Europe in the automotive industry, fueled by consumer demand and manufacturers' commercial calculations alike. Analysts say this industrial partnership is more than a stopgap measure, with considerable potential to deliver mutual benefits.

A May survey of young Italian consumers by consulting and market research firm Arete Methodos found that 53 percent of respondents are most attracted by the combination of technological features and product quality of Chinese cars -- outnumbering the 43 percent who cite their competitive prices as decisive.

In recent years, Chinese car makers have accelerated localization. Ten European production plans have been announced since September 2023, advisory company AutoMotion reported, including BYD's first European plant in Szeged, Hungary and SAIC's 200 million-euro (222.7 million U.S. dollars) factory in Spain's Galicia.

In September, Gotion High-tech, a Chinese battery manufacturer, agreed to invest around 1.1 billion euros (about 1.23 billion dollars) for a 49 percent stake in Volkswagen's battery-cell plant in Sagunto, Spain.

The partnership reflects a complementary division of role. Gotion contributes LFP technology, manufacturing processes and raw material supply chains. PowerCo, Volkswagen's battery subsidiary, brings its European industrial footprint, logistics and regulatory expertise.

The automotive sector attracted more Chinese Foreign Direct Investment in 2025 than any other industry in Europe. Investments in the sector totaled 7.6 billion euros (8.5 billion dollars), with 93 percent of them focused on the EV supply chain, according to a report by Rhodium Group and MERICS.