The electric vehicle era has handed Chinese automakers something the combustion engine never did – a clean state, allowing them to rapidly catch up with western manufacturers. Freed from the legacy costs and platform constraints that western OEMs faced in previous generation EVs, Chinese manufacturers have moved fast, and the results are clear in their latest models, particularly EVs. Brands like BYD, SAIC, and Chery have now cracked tough foreign markets, with Chinese models now regularly featuring in top-seller charts across Europe, Mexico, South America, and beyond.
The response from western automakers has been swift, with firms such as Volkswagen Group, Renault, and more rushing more affordable EVs to market. However, undercutting Chinese rivals on price on their own is still proving difficult. Many western manufacturers are now realising that if future automotive success belongs to those who can develop, build, and distribute EVs quickly and in massive numbers, then it may be better to collaborate and forge partnerships than to simply compete.
In Western Europe in particular, Chinese cars accounted for nearly 1 in 10 new cars sold in the first quarter of this year. At the same time, declining vehicle demand for western models has left some car factories across the region with significant spare capacity.
Western-Chinese automotive partnerships aren’t an entirely new concept, with such joint ventures being commonplace in China for the last few decades of combustion engined cars in order for western brands to gain a foothold in the region. However, these partnerships are now being expanded or created to cover global markets, with so-called ‘China speed’ being used to give western brands a new advantage. In this article, we’re highlighting some of the most important partnerships and arrangements taking place now, or coming very soon.
Stellantis: Leapmotor and Dongfeng
Leapmotor
Stellantis was among the first western OEMs to forge a significant global partnership in the EV era, taking a 20% stake in Chinese manufacturer Leapmotor in 2023 and establishing a joint venture that grants Stellantis exclusive rights to manufacture, distribute, and market Leapmotor products outside of Greater China. Leapmotor brings its next-generation EV technology and low production costs, while Stellantis contributes its deep experience in western markets – across areas like dealer networks, distribution infrastructure, and aftersales support. This combination has already been proving a success in Europe.
The partnership is now in the stage of moving well beyond simply distributing Leapmotor EVs made in China. Stellantis is actively exploring using Leapmotor’s platform as the basis for new models within its own brands, such as a potential Vauxhall/Opel-badged EV closely based on the Leapmotor B10, with both cars set to share a production line.
The joint venture also lowers the barrier for Leapmotor to establish localised manufacturing in Europe, allowing it to avoid EU tariffs against EVs. This is something the two companies are also actively exploring.
Dongfeng
Stellantis and Dongfeng have already operated a China-based joint venture for over 30 years, and now the two firms have announced plans to share production of Peugeot and Jeep-branded vehicles, including EVs, that will be sold on a global scale – not just in China. The partnership begins with four models, expected to launch later this decade.
In a similar guise to Leapmotor, Stellantis has also announced the creation of a new joint venture that will allow it to sell China-produced Dongfeng EVs in Europe. Later down the line, this joint venture also intends to localise production of these Europe-bound models.
Nissan and Chery
Excess production capacity in some European car plants is also causing new partnerships to be considered. Nissan and Chery recently signed a non-binding Memorandum of Understanding to study the possibility of producing Chery vehicles at Nissan’s existing car plant in Sunderland, England – a facility currently producing cars such as the new Nissan Leaf. If the idea becomes reality, expect Chery vehicles to begin rolling out of the Sunderland plant from 2027.
With sales of Chery vehicles rising across the UK, this partnership would give the manufacturer another assist in deepening its foothold in the UK market. EVs produced here could also be exported to the European Union, sidestepping the heavy import tariffs currently placed against Chinese manufacturers. Nissan also wins in this scenario, ensuring that plant utilisation can be kept as high as possible.
Renault’s Chinese development presence
Not every example of a western automaker leveraging China’s EV expertise comes from a direct OEM partnership. Renault’s new Twingo will go on sale soon in Europe, becoming one of the most affordable EVs thanks to prices starting below £20,000 / €20,000, and is a case in point.
While it will still be produced in Europe, Renault centred much of the Twingo’s engineering and development within China, shortening its development and delivery cycle to just under two years, something that would have been very difficult under conventional methods. Renault is already applying the same approach to an upcoming A-segment Dacia EV, showing that China-centred development is becoming a repeatable method for the manufacturer rather than a one-off experiment.
