Lorraine Williamson
Spain could become a European production base for one of China’s best-known luxury car brands, as Hongqi explores a possible manufacturing deal with Stellantis. The Hongqi Spain talks are still at the discussion stage, according to Reuters, but they point to a wider shift in Europe’s car industry as Chinese manufacturers look for local production routes inside the EU.
Reuters reports that Hongqi, owned by Chinese state automaker FAW, is in talks with Stellantis to produce vehicles at one of the group’s Spanish factories. If an agreement is reached, the cars could be assembled at the Stellantis plant in Zaragoza, according to sources cited by Reuters.
The talks are reportedly being facilitated through Leapmotor, the Chinese electric vehicle company in which both FAW and Stellantis have interests. Stellantis is already due to produce Leapmotor vehicles in Zaragoza.
No final deal has been announced. That makes the story significant, but not yet confirmed as a firm investment.
Why Spain matters to Chinese carmakers
Spain is already one of Europe’s biggest car-producing countries. It has large established factories, supply chains, port access, and strong links to the wider European market.
For Chinese brands, producing inside Europe can reduce exposure to tariffs, shorten delivery routes, and make expansion easier. It also gives brands a more local manufacturing footprint at a time when Brussels is taking a tougher line on China-made electric vehicles.
The possible Hongqi move follows other China-linked investments in Spain’s automotive sector. Reuters reported last year that CATL had broken ground on a major battery plant in Aragón with Stellantis, underlining the region’s growing role in electric mobility.
Sánchez urges China to do more for peace and trade
From state symbol to European ambition
Hongqi has a distinctive history. The brand was once associated with China’s political elite and official state cars. Today, it is trying to become a global premium brand.
Reuters says Hongqi wants to sell one million cars a year by 2030, with at least 10% of sales outside China. It also aims to launch 15 electric and hybrid models in Europe by 2028.
A Spanish production deal would therefore be more than a factory arrangement. It would give Hongqi a foothold in Western Europe at a moment when Chinese carmakers are moving quickly to challenge established brands.
Zaragoza’s role in Spain’s EV future
Zaragoza has become increasingly important in Spain’s electric vehicle strategy.
The Stellantis plant at Figueruelas has long been one of Aragón’s main industrial engines. New EV and battery-linked projects could help protect that role as the European car sector shifts away from petrol and diesel models.
For Spain, the question is not only whether Chinese brands build here. It is whether those deals bring stable jobs, technology transfer, and long-term industrial value.
A deal that would carry political weight
The talks come at a sensitive time for Europe’s car industry.
European manufacturers face pressure from high costs, slower EV demand in some markets, and competition from Chinese brands. At the same time, governments want to keep factory jobs and attract new investment.
Spain has positioned itself as a competitive manufacturing base for the next generation of vehicles. A Hongqi-Stellantis deal would strengthen that image, but it would also raise questions about dependency on Chinese technology and how European brands respond.
Spain’s car industry waits for confirmation
If the talks succeed, Spain could gain another high-profile China-linked automotive project. If they stall, the fact that Zaragoza is being discussed still shows how central Spain has become to Europe’s EV manufacturing map.
Either way, the Hongqi Spain talks underline a bigger reality: the future of Europe’s car industry is no longer being shaped only in Germany, France, or Italy. Spain is firmly in the race.
Liux flax fibre car: a tiny Spanish EV with a big industrial message