Hongqi Explores European EV Production with Stellantis to Bypass EU Tariffs

China’s luxury automaker Hongqi is reportedly in advanced discussions with Stellantis to assemble future models at a Stellantis plant in Spain. The negotiations are being facilitated through the Leapmotor joint venture, where Stellantis holds a 20% stake and Hongqi’s parent company, the FAW Group, owns 5%.

While specific terms remain undisclosed, the talks could significantly accelerate Hongqi’s European expansion. According to Reuters, the discussions aim to launch more than a dozen electric and hybrid models in Europe by 2028, while avoiding the expenditure of hundreds of millions of dollars on a new factory. European production would also help Hongqi circumvent hefty EU import tariffs on foreign-made vehicles.

A Stellantis spokesperson declined to confirm details but stated the company holds “discussions with a range of industry players around the world on various topics, always with the ultimate aim of providing customers with the best mobility choices.”

The potential partnership is part of a broader strategy by Stellantis, which has been engaging in talks with multiple Chinese automakers about European production. Earlier this month, reports indicated Stellantis was considering a collaboration with Dongfeng, which could grant the Chinese firm access to underutilized Stellantis plants in Europe. In return, Dongfeng would produce Stellantis vehicles in China. Dongfeng officials were reportedly visiting plants in Italy and Germany as part of these negotiations.

Stellantis has also been in discussions with Xpeng and Xiaomi, suggesting the conglomerate is evaluating multiple offers to determine the most viable deal.

Hongqi’s Legacy and European Ambitions

Founded in 1958, Hongqi holds historical significance as the “first car produced independently in China.” The brand gained prominence under Mao Zedong, the founding leader of the People’s Republic, who favored Hongqi limousines as a symbol of national pride during an era when China relied heavily on Soviet-made vehicles.

In recent years, Hongqi has intensified its focus on international markets, particularly Europe. The brand has already established a presence in several countries and plans to open more than 200 dealerships across the continent by 2028.