Stellantis gives Dongfeng the green light: Chinese luxury EVs to be made in France
Just last week (mid-May 2026), Stellantis and Dongfeng Motor strengthened their strategic partnership once again. Through a newly established European joint venture, Chinese-brand vehicles will be directly assembled in continental Europe, marking a new phase where Chinese automakers shift from entering overseas markets to taking the lead.
■ Mutual Benefits for Both Partners
| Partner | Key Action | Main Benefit |
| Stellantis | Opens capacity at its Rennes, France plant | Boosts utilization, saving a factory that previously only produced the Citroën C5 Aircross |
| Dongfeng (Voyah) | Assembles new energy vehicles (NEVs) locally in Europe | Avoids EU tariffs by leveraging local manufacturing status |
Voyah, the luxury brand under Dongfeng, will be the first to produce new energy models—including plug-in hybrids, pure electrics, and range-extended EVs—at the Rennes plant. Given its high-end positioning, the initial vehicles will target specific markets in Western and Northern Europe, utilizing Stellantis' dealer network for distribution.
Additionally, Stellantis holds a 51% controlling stake in this joint venture. This model has precedent: Stellantis also owns 51% of Chinese automaker Leapmotor and plans to produce its electric models in Spain.
💡 Industry Insight
Allowing Chinese brands to build cars on their home turf is a high-stakes gamble for legacy European automakers. While it can fill idle factory capacity and generate profits in the short term, this "letting the wolf into the house" strategy may backfire in the long run as competition intensifies.
■ Chinese Brand Market Share in Europe (as of Q1 2026)
| Brand | Market Share |
| SAIC Motor | 2.3% |
| BYD | 0.9% |
With giants like Stellantis choosing to offload capacity, the presence of Chinese cars in Europe is expected to keep growing. Currently, Dongfeng also plans to produce more new energy models under its own brand at the Chartres-de-Bretagne plant.
