Hongqi rejuvenates picture, makes an attempt aggressive EU push

Hongqi, greatest generally known as Chairman Mao Zedong’s state limousine model, has accomplished a dramatic seven-year revival and is now focusing on aggressive growth into European markets. The automaker, owned by state-controlled FAW, offered roughly 412,000 autos throughout 2024 representing 17.4% progress and now plans to introduce 15 electrical and hybrid fashions throughout 25 European markets by 2028.

It was not so way back that Hongqi confronted whole irrelevance, promoting fewer than 5,000 autos in 2017 earlier than FAW recruited former Rolls Royce Design Chief Giles Taylor to modernise its styling and broaden the product lineup with electrical autos and SUVs. The turnaround has been substantial, with gross sales focusing on round 500,000 items for 2025.

Half of the automaker’s new gross sales come from battery-electric and plug-in hybrid fashions, in-keeping with the pattern amongst Chinese language OEMs. It doesn’t plan to decelerate: “Past 2025, we’ve ambitions to get to one million automobiles,” Taylor, who joined FAW as International Vice President for Design in 2018, informed Reuters with out offering a concrete timeline.

Hongqi shipped an preliminary 600 electrical sedans and SUVs to Europe throughout November 2024 however offered solely 771 autos throughout the continent via October 2025. Taylor acknowledged that in lots of European markets—notably Germany—customers stay loyal to native manufacturers. Overcoming this may show difficult however he believes Hongqi can provide equal or superior merchandise with cutting-edge expertise at worth factors Western marques can’t compete at.

Options embody AI cockpit methods within the Tiangong electrical lineup providing voice-activated controls, memorised seat preferences and mood-based playlist suggestions. Taylor informed Automotive Information Europe that Hongqi’s ties to the state authorities allow entry to expertise “at costs that you just simply wouldn’t imagine”. Relating to sticker costs he remarked: “Do you actually need to spend €5 for a Starbucks espresso when there’s a brand new little startup model across the nook promoting espresso for €1.50?”

Now, Hongqi is exploring potential manufacturing websites throughout Europe to attempt to circumvent EU tariffs on Chinese language-made electrical autos. In an interview with Automotive Information Europe State-owned automakers have usually confronted the worst tariffs: SAIC faces duties of as much as 45.3% together with the ten% base fee.

FAW said in 2023 that it desires 25% of Hongqi’s gross sales originating from abroad markets by 2030 to assist it keep afloat amid the continued worth wars in China. Worth warring solely worsened in 2025 when BYD introduced deep worth cuts throughout its mannequin lineup. Past Europe, Hongqi can be seeking to Latin America, launching three fashions in Mexico in 2025. It additionally started taking orders for its ultra-premium Golden Sunflower sub-brand in Kuwait this 12 months, whereas additionally getting into different markets within the MENA area.

In a remark to ReutersTu Le, Founding father of consultancy Sino Auto Insights, questioned whether or not Hongqi can replicate its latest home success abroad: “Outdoors China, Hongqi loses that pure home-field benefit of being the nationwide champion; of being the president’s automotive,” Le remarked. “They’ve obtained to determine find out how to promote themselves to individuals who don’t know what Hongqi stands for.”

For now, the automaker is taking small steps to say a presence in Europe, together with displaying at IAA 2025. The EHS5 mid-size electrical SUV showcased at Munich—the newest addition to Hongqi’s mannequin lineup—options an 85-kilowatt-hour battery, delivering a 550 km vary.