Leapmotor has become the first Chinese automaker to build electric vehicles and batteries in Europe, Automotive News reports, with the landmark achieved thanks to an assist from Stellantis. No Chinese automaker had previously put both vehicle and battery production on European soil, and the move signals that Chinese EV players are prepared to embed themselves in the region's industrial base rather than rely on exports alone.
The timing is no coincidence. Under the EU's emerging 'Made in Europe' plan, cars imported from Japan would not qualify for EU subsidies, while models built in France, Portugal and Eastern Europe would benefit only if enough of their parts come from Europe, The Business Standard reports. Where a car is assembled no longer decides its fate — what matters is where its components are made.
That local-content condition is precisely what has global auto suppliers on edge. The plan unnerves suppliers whose business models rest on shipping components into Europe from distant plants, while handing an advantage to those with production capacity inside the bloc. For Eastern Europe's dense network of component factories, the new rules could redirect sourcing decisions toward the region — a shift suppliers cannot afford to watch from the sidelines.
