How Chinese Automakers Are Accelerating Localization in Spain

Core Event & Data

Strategic Deepening: Chery Automobile has recently initiated the expansion of its European R&D center in Raunheim, Rhine-Main, Germany. The office and R&D space will increase from approximately 1,100 sqm to over 2,000 sqm. Established in 2018, this center serves as Chery’s technological outpost in Europe.

Market Entry Tempo: Despite the early establishment of the R&D center, Chery’s passenger car brands Jaecoo and Omoda only officially entered the European market in 2024 (starting in Spain), followed by the UK, Italy, and Hungary, with Germany imminent. Since 2025, its European operational headquarters has relocated to the Frankfurt area.

Capability & Team Building: The center’s core tasks include chassis tuning, certification, and an “Advanced Design Studio” (supporting global brands). The current headcount is about 90 employees (primarily engineers and designers), with plans to grow to 120-140 by the end of 2026.

Industry Insights

For Chinese Automakers: As globalization enters deeper waters, competition is shifting from “supply chain cost advantage” to the building of “systematic local capabilities.” Chery’s “R&D-before-market” model suggests that in premium markets, strategic losses from early investments in talent, institutions, and knowledge accumulation may be the necessary “cost of entry” to build long-term credibility and brand premium.

For the European Industry: The European footprint of leading Chinese automakers is rapidly deepening from mere sales networks into regional hubs for R&D, engineering, and even strategic management. They are not only competitors but are also becoming employers of local talent, participants in the technological ecosystem, and contributors of innovative ideas. This heralds a more multidimensional and complex competitive landscape.

Chery EuropeStrategy RDLocalization GermanAutoIndustry ChineseBrandsGlobal Jaecoo Omoda GlobalR&D LongTermism