Chinese automaker Changan is considering building a new factory in Spain as part of its European expansion strategy, according to local media reports.
Northern Spain has been mentioned as a possible location, with Aragón standing out as one of the regions under consideration.
No final decision has been made yet, but the move would fit a wider pattern already taking shape across Europe.
Chinese carmakers are looking for local production sites as they prepare for stricter market conditions, higher trade barriers, and stronger competition.
Why Spain Is On Changan’s Radar
Changan plans to launch eight new models in Europe over the next three years and invest about $2.2 billion in the region by 2030. A Spanish factory would give the company a stronger industrial base inside the European Union.
Other Chinese manufacturers have already started moving in the same direction. BYD, for example, is building production capacity in Hungary as it expands its European footprint.
Local manufacturing helps Chinese brands meet tougher EU requirements while also reducing exposure to import tariffs on electric vehicles built in China. For Changan’s Deepal S05 and S07 electric models, total duties reach 30%, including the EU’s standard 10% import tariff.
Spain Wants More Than Assembly Plants
Spain has been actively trying to attract Chinese investment. The goal is not only to bring in vehicle assembly, but also to draw advanced technologies, supplier activity, and research and development work.
Spanish Prime Minister Pedro Sánchez recently visited Beijing again, where he met Changan chairman Zhu Huarong and other Chinese officials. Sánchez said relations with China could become a key pillar of Spain’s economic growth.
That position also reflects Spain’s broader industrial ambitions. The country already has a strong supplier network, relatively low energy costs, and a long-established role as one of Europe’s largest vehicle manufacturing hubs.
Chinese Investment Still Faces European Caution
Spain’s openness to Chinese automakers contrasts with the more cautious stance taken by some other European countries. For many governments, Chinese investment brings opportunities but also raises concerns about political influence and long-term industrial dependence.
Last month, the European Commission announced the Industrial Accelerator Act, a measure aimed at supporting European companies affected by the rise in imports from China after the pandemic. According to Automotive News, Chinese officials reportedly asked Sánchez to block the initiative.
That shows how sensitive the issue has become. Europe wants investment, jobs, and faster electrification, but it also wants to protect its own manufacturers and maintain control over key parts of the automotive supply chain.