Chinese luxury automaker Hongqi, owned by FAW, is in advanced talks to assemble its electric vehicles at a Stellantis plant in Vigo, Spain. The move would accelerate its entry into the European market while avoiding steep import tariffs on Chinese-made EVs.
Hongqi, the Chinese luxury brand once reserved for Chairman Mao, may have found a shortcut into Europe. According to a report by InsideEVs, Hongqi is in advanced discussions with Stellantis to use its factory in Vigo, Spain, for local assembly of its electric vehicles. This strategic move would help the brand bypass the European Union’s additional tariffs of up to 17.4% on Chinese-made EVs, bringing the total tariff to 27.4%.
Why Stellantis’ Spanish Plant?
The Vigo plant currently produces models for Peugeot and Citroën. By leveraging this existing facility, Hongqi can avoid the high costs of building its own factory from scratch. The local assembly would classify the cars as European-made, sidestepping the punitive tariffs that have hindered Chinese EV imports. Neither company has officially confirmed the deal, but sources indicate talks are advanced.
Hongqi: From Mao’s Ride to Rolls-Royce Rival
Founded in 1958, Hongqi (meaning “Red Flag”) was originally reserved for top Communist Party officials. Today, it offers a lineup of luxury EVs that compete with Rolls-Royce and Bentley. Its flagship electric models include the EH7 sedan and the E-HS9 large SUV, both boasting a range of over 500 km (NEDC) and opulent interiors with massive screens, leather seats, and massage functions. Hongqi aims to sell 10,000 cars in Europe by 2025, a target that requires local production.
What does this mean for the Gulf market?
Hongqi’s European push could eventually benefit Gulf buyers. The brand is expected to enter Saudi Arabia and the UAE within the next two years, riding the wave of growing interest in Chinese EVs. However, the lack of an official distributor means the timeline remains uncertain. Gulf consumers can expect competitive pricing against established luxury EVs, though heat tolerance and service networks will be key factors.
Challenges ahead
Despite its ambitions, Hongqi faces hurdles in Europe: brand recognition is low, building a dealer network is costly, and competition from German marques and Chinese rivals like NIO and BYD is fierce. If the Stellantis deal goes through, Hongqi could become the first Chinese luxury brand to produce cars in Europe, giving it a significant edge.
Key Facts
- Brand: Hongqi (FAW)
- Potential plant: Stellantis Vigo, Spain
- EU tariff on Chinese EVs: 27.4% (including 17.4% additional)
- Key EV models: EH7 sedan, E-HS9 SUV
- Range (NEDC): Over 500 km
- Europe sales target by 2025: 10,000 units
Frequently Asked Questions
When will Hongqi arrive in Saudi Arabia?
No official date has been announced, but the brand is expected to expand to the Gulf in 2025-2026, especially after establishing a European production base.
Does Hongqi really compete with Rolls-Royce?
Yes, Hongqi targets the ultra-luxury segment with models like the E-HS9, offering similar features (leather seats, large screens, premium audio) at a much lower price, making it a strong competitor in China and potentially Europe.
What is the advantage of using Stellantis’ plant in Spain?
It allows Hongqi to avoid the 27.4% EU tariff on Chinese-made EVs and leverage existing industrial infrastructure to speed up market entry.
Are Hongqi EVs suitable for the Gulf climate?
Theoretically yes, as they feature advanced battery cooling systems. However, real-world testing in high temperatures is needed to confirm range and cooling efficiency.
Frequently Asked Questions
When will Hongqi arrive in Saudi Arabia?
No official date has been announced, but the brand is expected to expand to the Gulf in 2025-2026, especially after establishing a European production base.
Does Hongqi really compete with Rolls-Royce?
Yes, Hongqi targets the ultra-luxury segment with models like the E-HS9, offering similar features (leather seats, large screens, premium audio) at a much lower price, making it a strong competitor in China and potentially Europe.
What is the advantage of using Stellantis' plant in Spain?
It allows Hongqi to avoid the 27.4% EU tariff on Chinese-made EVs and leverage existing industrial infrastructure to speed up market entry.
Are Hongqi EVs suitable for the Gulf climate?
Theoretically yes, as they feature advanced battery cooling systems. However, real-world testing in high temperatures is needed to confirm range and cooling efficiency.
Sources
- InsideEVs — China’s Rolls-Royce Rival May Have Found A Shortcut Into Europe
