Omoda and Jaecoo launch production in Barcelona and strengthen their position in the Spanish market. Omoda and Jaecoo are betting on local production in Barcelona and expanding their dealer network to remain competitive amid new tariffs and to strengthen their presence in the Spanish and European markets.
Omoda and Jaecoo launch local production in Barcelona and expand their dealer network to strengthen their position in the Spanish market and reduce the impact of new tariffs on the import of Chinese cars.
Key point
Chinese brands Omoda and Jaecoo, part of the Chery group, have announced the launch of pilot assembly lines at a plant in Barcelona. This will allow them not only to adapt their cars to European consumer demands but also to bypass some of the new customs restrictions on imports. In two years on the Spanish market, the brands have captured 5% of the private customer segment, and their sales are growing faster than the market. In the coming months, the model lineup is expected to expand with new hybrid versions.
Why it matters
Localizing production is a rare step for Chinese car manufacturers in Europe. Amid tightening trade barriers and growing competition in the SUV and hybrid market, having their own plant in Spain gives Omoda and Jaecoo an advantage: they will be able to respond to market demands faster, reduce costs, and increase their appeal to European buyers.
Context
In 2024, the European Union began introducing additional tariffs on car imports from China to protect local manufacturers. Many Chinese brands found themselves at risk of losing competitiveness. Omoda and Jaecoo chose a strategy of deep integration: in addition to the plant in Barcelona, they operate a research and development center, and their dealer network covers 18 European countries. Spain has recorded a sales record—3,343 new vehicles sold in April 2026.
Who this concerns
- Potential SUV and hybrid buyers in Spain and Europe: more models and localized service are expected.
- Dealers and service centers: network expansion and new business opportunities.
- Competitors — European and Asian automakers: increased pressure in the budget and hybrid segments.
- Local authorities and workers: job creation and tax revenues.
What may change
- Prices for Omoda and Jaecoo vehicles may become more stable or lower thanks to local production.
- New models adapted to European standards and preferences will appear.
- Other Chinese brands may follow suit and open production in the EU.
- The share of hybrid and plug-in hybrid models in sales will grow (already at 80%).
What is still unknown
- How quickly the Barcelona plant will reach full capacity and the degree of localization.
- How pricing policy will change after production begins.
- How European regulators will respond to the further expansion of Chinese brands.
- Whether localization will be sufficient to bypass all new duties and restrictions.
How not to misinterpret
- Localization does not mean a complete stop to imports: some components and technologies will still be supplied from China.
- Sales growth is linked not only to price, but also to an expanded range and service infrastructure.
- It's too early to speak about long-term success: much depends on the response of the market and regulators.
Conclusion
Omoda and Jaecoo are focusing on localization and hybrid technologies to gain a foothold in the European market amid new trade barriers. For buyers, this means more options and services; for the market, increased competition. It will be important to watch how quickly and at what scale production in Barcelona ramps up, and how this will affect prices and the range of offerings.
