A European Factory, a Global Car
On September 16, Alfredo Altavilla, an adviser to Chinese manufacturer BYD in Europe, said that the brand would need three assembly plants and one battery plant on the continent in the long term. This expansion is not a new phenomenon. For years, we have seen Chinese manufacturers become part of the European automotive industry, whether through new facilities, such as BYD’s in Hungary; bringing former factories back into use, as Chery is doing with EBRO at Nissan’s former plant in Barcelona; or acquiring European brands, as Geely did with Volvo Cars.
This trend raises the question of what a car needs to be considered truly European. If it employs European engineers, is made with Austrian steel and is assembled in Hungary, is it automatically European? Or is it automatically Chinese because the company belongs to a group from that country? To answer that, we need to distinguish where value is created, who controls the technology and where decisions are made. Above all, we need to think about the consequences of this new direction.
What Lies Behind the Label
According to the IEA, China accounted for more than 80% of global battery cell production in 2025. This helps explain why the location of an assembly plant tells only part of the story. Behind every vehicle are design, intellectual property, material selection, component manufacturing, software and production processes. Companies and engineers from different countries can contribute at every stage.
It is therefore difficult to draw a line that determines how European a car is. Should every stage carry the same weight? Is manufacturing more important than design? These are questions many of us might ask when thinking about this issue.
In my view, different contributions do not carry the same value in every product. If good design reduces costs while maintaining quality, that creates significant value. If material selection improves durability, that decision matters too. If manufacturing ensures tight tolerances and consistent quality, production expertise is essential. There is no single answer, and manufacturing well is not simply a matter of following instructions.
That is why, beyond a brand’s passport, what matters to me is the philosophy a company follows and the standards it is willing to uphold. That does not determine a product’s nationality, but it does shape much of what I expect from it. And I think it is worth asking what we want to preserve about our approach to the automobile.
What Europe Stands to Gain
Beyond whether a product is European, it is important to consider what value it brings us. The arrival of these manufacturers can create jobs, attract investment, open opportunities for suppliers and encourage training and the exchange of knowledge. Nor would it be fair to assume that every foreign company comes here only to assemble cars: in 2025, BYD announced an R&D centre in Budapest, with electrification projects and university partnerships. We will have to see how those commitments take shape.
But it is not all good news. The jobs created at one plant do not tell the whole story if activity is being lost elsewhere at the same time. And manufacturing here does not guarantee that we control the technologies, component supplies or decisions that will shape that factory’s future.
In my view, the risk lies in becoming increasingly dependent on companies whose decisions we have little influence over. I worry that we may celebrate the arrival of production while losing the ability to develop our own products. Having factories matters, but so does being able to decide what they make and taking part in developing the next generation.
Competition from more affordable alternatives can benefit consumers and push European manufacturers to improve. What concerns me, however, is how they respond to that pressure. If the answer is to cut back on things that are hard to judge in a showroom—durability, repairability or the quality of certain components—to keep prices attractive and equipment eye-catching, I think we will be taking the wrong path.
I do not assume that a Chinese car is worse or that a European one is better. What I reject is a way of competing in which we end up accepting lower quality because ‘it is fine for the price’, or in which screens and lights matter more than handling, efficiency and reliability. And I would make the same criticism of a European brand if it took that path.
Personally, that is not the car industry I want for the future. I want technology to improve cars in the ways that really matter, and competitive pricing to come from doing things better, without making durability an afterthought.
The Next Generation Test
With all this in mind, we need to think about where we want to go. That question is also ours to answer as consumers, even if the decisions of executives and policymakers carry a weight that our choices in a showroom cannot replace.
I understand that price is decisive for many people. Not everyone can afford to pay more for a car, and a familiar brand does not deserve a blank cheque either. But I also think we should ask what we are comparing when we look at two prices: how long we expect the car to last, how we will be able to repair it, what service we will receive and which qualities we truly value. The same standards should apply to every brand.
Perhaps both models can coexist if competition is fair and investment helps build capabilities here. For me, a good test will be the role our engineers and suppliers play when it is time to create the next vehicle. Will we have learned to do more ourselves, or will we still depend on decisions and solutions developed elsewhere?
Perhaps the future will bring affordable, modular cars that look increasingly alike and have less personality. Perhaps we will recover some of the qualities I miss: simplicity, intuitive controls and cars designed to last and be repaired. I do not think everything was better fifteen years ago, but neither do I think every change is progress.
I do not have a crystal ball, but I know which qualities I want tomorrow’s car to keep. What about you?
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