Mao Zedong's Limousine Maker Plans to Produce Electric SUVs in Spain to Bypass Tariffs and Accelerate Global Expansion
Hongqi — the luxury brand that has been the ‘official’ carrier of the Chinese Communist Party for seven decades — is preparing its most ambitious move to the West. The state-owned manufacturer is negotiating with Stellantis for the production of its new luxury SUVs at the Zaragoza plant in Spain. The goal is to transform the brand, which is the ultimate symbol of political prestige in Beijing, into a global competitor capable of taking on Audi and Mercedes-Benz on European soil.
Founded in 1958, Hongqi (whose name means “Red Flag”) was born to serve exclusively the top echelons of government, including leader Mao Zedong. To this day, their models are mandatory presences in military parades and carry heads of state, such as President Xi Jinping. This status as an “official limousine” gives the brand a prestige that it is now trying to convert into commercial value, distancing itself from the image of purely government cars to focus on cutting-edge electric technology.
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The manufacturing strategy in Spain uses a triangulation with Leapmotor, an electric startup in which Stellantis holds a stake. Hongqi will use Leapmotor’s technology platforms in its new models, such as the EHS5 SUV. By assembling these vehicles in Zaragoza, the Chinese state-owned company circumvents the heavy import tariffs imposed by the European Union on cars manufactured in China and takes advantage of the logistics structure of one of the largest automotive groups in the world.
The plan foresees the commercialization of 100 thousand units annually outside China by 2030. For Stellantis, the agreement reinforces the thesis that the group can act as a facilitator for oriental brands seeking production agility in Europe. For Hongqi, the partnership represents a chance to prove that the luxury that served the Chinese revolutionaries can finally win over European consumers.
