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How will the EU's proposed legislation impact electric vehicle and battery investments? How should Chinese companies respond?
【Caixin.com】 Spanish industry media La Tribuna de Automoción recently reported that Geely Auto (00175.HK) plans to acquire a production line at Ford’s factory in Spain, and both sides have reached a related agreement. As of Caixin’s report, Geely Auto has not responded to inquiries.
Chinese automakers, including Geely Auto, are actively expanding into the EU market, but a series of measures by the EU aimed at protecting local industries have increased market barriers. In March 2026, the European Commission proposed a draft of the Industrial Accelerator Act (hereinafter referred to as the Act), which also introduced multiple additional restrictive measures.
People close to Geely Auto believe that the draft sends a clear signal to protect the local automobile manufacturing industry, and that Chinese automakers and battery companies need to choose more prudent localization solutions.