Chinese automakers are expanding their research and development (R&D) operations in Europe to develop models better suited to local regulations, driving conditions and consumer demand, making overseas R&D part of product planning, design and engineering. Chinese automaker Geely Auto Group announced in March that it had established Geely Technology Europe, a unified European R&D center that brings together the company’s engineering teams in Gothenburg, Sweden, and Frankfurt, Germany. The group said Geely Technology Europe will work with the Geely Auto Research Institute in China on vehicle planning and development. It aims to support global vehicle programs and reduce the gap between new model launches in China and overseas markets to less than six months. The group also plans to expand the number of vehicle programs managed in Europe by 2027.
Chery has placed its European operations and R&D functions in Barcelona, Spain, giving it a role that covers both regional management and product adaptation. In April, the company opened its European Operations Center and launched the Spain R&D Institute in the city. The operations center will coordinate regional operations, compliance, supply chain coordination, finance and public affairs. The institute will focus on electrification, intelligent mobility and sustainable development, according to the company. Chery said its local R&D work will cover adaptation to European regulations and customer needs, including family-oriented models, vehicle performance on European roads and intelligent driving functions suited to local traffic.
Munich, Germany, a major European automotive hub, has become an R&D base for Chinese automakers. XPeng has established its first European research center in the city, focusing on driver-assistance technologies and intelligent cockpit systems. XPeng said the center will help it better understand European users and incorporate local needs into future product development. Xiaomi Auto has outlined plans for a Munich R&D center focused on high-performance vehicle development, design, chassis tuning and advanced automotive technologies.
Choosing the right market-entry path is a major challenge for Chinese automakers entering Europe, said Ron Zheng, Senior Partner at Roland Berger and head of its automotive practice in Asia. Depending on their resources and market positioning, some companies could start with Southern European markets such as Spain and Italy, consider Eastern Europe as a production base, or use Northern Europe’s R&D resources to support expansion.
For Chinese automakers, R&D teams in Europe can support product planning, regulatory adaptation, software localization and testing of driver-assistance functions. The region also offers mature engineering resources and established supply chains, while its rules cover safety, emissions, cybersecurity, data protection and battery recycling, the China Daily reports.
