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Santana Motors: China's EU Gateway
24 Dec
Summary
- Santana Motors rebrands Chinese cars, plans local battery assembly.
- New assembly lines will produce BAIC vehicles within nine months.
- Spain aims to be a key hub for Chinese automakers entering Europe.
Santana Motors has relaunched operations in Linares, Andalusia, assembling and re-branding vehicles from Chinese manufacturers such as Dongfeng and BAIC. A second assembly line dedicated to BAIC vehicles is scheduled to begin production in approximately nine months, marking a step towards full-scale manufacturing. The company is also establishing a small battery assembly plant and aims to achieve 60% local component sourcing within three to five years.
The strategy aligns with European Union regulations favoring local production and aims to reduce import costs. By sourcing parts locally, Santana and other Chinese-backed ventures like Ebro Motors EV are positioning themselves as compliant with EU requirements designed to protect domestic industries. This move capitalizes on Spain's growing role as an entry point for Chinese automotive brands.
This initiative underscores Spain's strategic importance in the European automotive market, attracting significant Chinese investment. Prime Minister Pedro Sánchez has prioritized engagement with Chinese investors, exemplified by the construction of a large battery plant by Contemporary Amperex Technology Co. Ltd. The Andalusia plant currently employs about 80 people, with plans to expand to 300, and has an annual capacity of 5,000 vehicles.
