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Europe Might Not Be Ready For What China’s Most Luxurious Brand Plans Next
- Hongqi plans 15 hybrid and EV models across 25 European markets.
- The brand is scouting sites for local factories in multiple regions.
- FAW-owned Hongqi sold just 771 vehicles in Europe through October.
Hongqi cars may be a common sight across China, but beyond its home market, the brand remains something of a mystery to most car buyers. That may soon change. China’s oldest and most luxurious automaker has set its sights on a sweeping European expansion, planning to introduce 15 electric and hybrid models and bring them to 25 markets by 2028.
Read: China’s Most Luxurious Brand Is Coming For Europe With 15 New Models And It’s A Red Flag
Like many of its Chinese peers, Hongqi sees global growth as essential, and Europe is high on the list. The brand’s plans, however, face a complicated landscape. The European Union has imposed heavy tariffs on Chinese-built electric vehicles, raising both costs and stakes.
In response, Hongqi is said to be exploring local production. Potential manufacturing sites are reportedly under consideration in southern Europe, eastern Europe, and the Nordic region. Building cars within the EU could soften tariff impacts and make logistics smoother, especially as the company works to establish itself in a new market.
Hongqi, a division of state-owned FAW, has sold just 771 vehicles in Europe through October, a modest figure compared with its home market reach. That number, though, may serve more as a baseline than a limit.
Its most significant newcomer is the EHS5, a mid-size electric SUV first shown at the Munich Motor Show. The model runs on an 85 kWh lithium-ion battery and offers a range of 342 miles (550 km).
European specifications haven’t yet been finalized, but in China the EHS5 comes in two versions: a 339 hp rear-wheel-drive model and a 610 hp all-wheel-drive setup. Until now, the EHS7 has been Hongqi’s top seller in Europe, but the new SUV could change that balance.
Pricing will be key to Hongqi’s success in Europe. Fellow Chinese brands, like MG, Chery, and BYD, have been steadily growing their sales across the region thanks to cut-price models.
FAW’s design chief, Giles Taylor, told Auto News that Hongqi’s government ties give it access to technology “at prices that you just wouldn’t believe.” That cost structure could be a powerful advantage.
“We can then leverage that pricing power whether it’s in domestic market or in Europe,” he said. “Do you really want to spend €5 for a Starbucks coffee when there’s a new little startup brand around the corner selling coffee for €1.50?”
