New Chinese car brand Deepal, rebranded in 2023, is set to enter the European market, showcasing its vehicles in Germany. The company plans to launch electric SUVs, including the S07 and S05, by September 2025, with ambitions to roll out eight models by 2027. Initially, all vehicles will be manufactured in China, facing potential customs duties and missing ecological bonuses in France. Plans for local European production are anticipated before 2030, but specifics remain undisclosed.
Emergence of New Chinese Car Brands in Europe
If you were to list Chinese car brands making their mark in Europe, you might mention familiar names like MG or BYD. However, prepare for an exciting influx of new brands in the coming years. Xpeng and Nio are already on the scene, but they certainly won’t be the last.
Introducing Deepal: A Fresh Player in the Market
Have you heard of Deepal? If not, that’s understandable. Although this Chinese car manufacturer was established in 2008, it only rebranded as Deepal in 2023. This change is the result of a partnership between the Changan group and Chongqing Science and Technology Venture Capital Co., Ltd. Recently, it was confirmed that Deepal will enter the European market, as reported by Electrive.
In Germany, specifically in Mainz, the Changan group showcased its lineup, which includes models from various sub-brands like Deepal and Avatr that will soon be available in Europe. Initial target markets include Germany, Denmark, Norway, the United Kingdom, and the Netherlands, although France has yet to be mentioned.
We’ll need to exercise some patience before we see these electric vehicles on European roads. The initial launch was slated for the second quarter of 2025, but the arrival has now been pushed to September. Nic Thomas, the marketing and sales director for Changan in Europe, emphasized the importance of being well-prepared, stating, “We do not want to rush anything; we want to be well prepared. We have seen what happens to other brands that are not ready.”
Germany will be the primary focus, with plans to establish around ten commercial partnerships for vehicle distribution. The group has ambitious goals, aiming to roll out eight models in Europe by 2027. The first two models expected to hit the market are the Deepal S07 and S05, electric SUVs that will compete directly with the Tesla Model Y.
In addition, three more vehicles are set to arrive in 2026 and 2027. While details are still under wraps, we anticipate they will include the Changan E07 SUV, along with the Avatr 11 and Avatr 12, which have already been introduced and spotted in France.
There are also potential additional models on the horizon, but specifics remain scarce. A diverse range of powertrains, including electric and range-extended options, is anticipated.
Initially, all Deepal vehicles sold in Europe will be manufactured in China, which may lead to elevated customs duties upon their entry into Europe. Additionally, due to stricter eligibility criteria, these vehicles won’t qualify for the ecological bonus in France. However, this situation may change, as the company has plans to build its cars in Europe “before 2030” under a strategy dubbed “In Europe for Europe.”
No specific location for the factory has been revealed yet, with the current facility based in Nanjing, China. Will they choose Spain, like CATL, MG, or Leapmotor? Or perhaps Hungary, similar to BYD? For now, the decision remains uncertain. It will be interesting to see if Deepal will manufacture its vehicles in Europe or simply assemble kits, as Xpeng plans to do. In the latter case, it might still miss out on the ecological bonus in France.