Europe May Not Be Prepared for the Next Move of China's Most Prestigious Brand | Carscoops

      Hongqi is embarking on a significant expansion in Europe, planning to launch 15 electric and hybrid vehicles across 25 markets.

      The brand is currently evaluating locations for local manufacturing in various regions.

      So far, FAW-owned Hongqi has sold only 771 vehicles in Europe through October.

      While Hongqi cars are common in China, they remain relatively unknown to many European consumers. However, that could soon change. As the oldest and most prestigious automaker in China, Hongqi has set an ambitious goal to broaden its presence in Europe by 2028 with the introduction of 15 new electric and hybrid models.

      Like many Chinese manufacturers, Hongqi views global expansion as crucial, particularly in Europe. Yet, the brand's ambitions are challenged by significant tariffs imposed by the European Union on Chinese-manufactured electric vehicles, driving costs up and raising the stakes.

      In response, Hongqi is reportedly considering local production to mitigate these tariff effects. Possible manufacturing locations include southern Europe, eastern Europe, and the Nordic region. Establishing production within the EU could help alleviate tariff burdens and streamline logistics as the company seeks to enter a new market.

      As a division of the state-owned FAW, Hongqi has sold only 771 vehicles in Europe as of October; this figure is modest compared to its sales in China but may be viewed more as a starting point than a ceiling.

      One of its most notable new models is the EHS5, a mid-size electric SUV that made its debut at the Munich Motor Show. The vehicle is powered by an 85 kWh lithium-ion battery, offering a range of 342 miles (550 km).

      European specifications are still being finalized, but in the Chinese market, the EHS5 is available in two versions: a 339 hp rear-wheel-drive variant and a 610 hp all-wheel-drive option. The EHS7 has been Hongqi’s leading model in Europe until now, but the new SUV may alter that dynamic.

      Pricing will be critical to Hongqi's success in Europe. Other Chinese brands, such as MG, Chery, and BYD, have been increasing their sales in the region by offering competitively priced models.

      Giles Taylor, FAW’s design chief, stated that Hongqi’s connections with the government provide access to technology at surprisingly low prices. This could prove to be a significant advantage.

      “We can leverage that pricing power in both the domestic and European markets,” he remarked. “Would you really spend €5 on a Starbucks coffee when there’s a new startup offering coffee for €1.50?”

      Sources: Auto News