Chinese automaker Changcheng Motors is set to begin vehicle production in Bulgaria. According to a report by Reuters on October 28, the company has signed a production agreement with local partner Bulgarian Automotive Industry (BAI) to manufacture the Ora 5 compact SUV starting in the first quarter of 2027.
The production facility will be located in Bahovitsa, near Lovech, with an annual capacity of 50,000 units. The financial details of the agreement have not been disclosed. Initially, the company will use a semi-knocked down (SKD) assembly method, sourcing some components locally.
In addition to electric vehicles, Changcheng Motors plans to produce hybrid and internal combustion engine models in the future.
When Changcheng Motors' electric vehicles are imported into the EU, they will face a 10% import tariff along with an additional 20.7% countervailing duty. Local production in Bulgaria will help alleviate the burden of these high tariffs. The company sold approximately 3,500 vehicles in Europe in 2025 and aims to increase that number to 60,000 next year, targeting a market share of 3-5% by 2030. Over the next two years, it plans to launch at least 10 new models and derivatives, utilizing its Munich research and development center to respond to European consumer demands and local regulations.
Changcheng Motors is the seventh Chinese automaker to confirm local production in Europe. BYD is constructing a passenger car factory in Szeged, Hungary, with a capacity of 150,000 units, expected to be completed by the end of this year. Chery is collaborating with a local firm to utilize the former Nissan plant in Barcelona, with production expected to begin in the first quarter of next year.
Leapmotor started producing the electric SUV B10 at the Stellantis plant in Zaragoza, Spain, on October 16, and plans to expand its production collaboration with Stellantis. Xiaopeng Motors and Guangzhou Automobile are producing vehicles at the Magna Steyr plant in Graz, Austria, with Xiaopeng focusing on contract manufacturing electric SUVs and Guangzhou producing two models there. Geely has confirmed plans to produce electric vehicles at the Ford plant in Valencia, Spain, starting in 2028. Additionally, SAIC is pursuing the establishment of a car factory in Spain, while Changan is also exploring contract manufacturing options at a local facility.
* This article has been translated by AI.
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