Stellantis to build and sell Dongfeng EVs in Europe

Citroen and Peugeot parent group Stellantis has signed a deal to build and sell Dongfeng cars in Europe.

The joint venture will see Stellantis take the lead on launching the Voyah brand from the Chinese state-owned Dongfeng group.

The move, which will see Voyah new energy vehicles built in Rennes, France, will help Dongfeng circumvent the current 45% import tariffs on Chinese-built cars.

It will also see Stellantis use its existing parts, logistics and sales networks to launch the brand in “designated European markets”. There is no indication of which markets that will include.

The Rennes factory currently only builds the Citroen C5 Aircross, but is understood to have line capacity to add more models.

Voyah is positioned as a premium maker of larger cars in its native China. It specialises in D- and E-segment models including large SUVs and MPVs, with a mixture of pure electric and plug-in hybrid powertrains.

Three of its all-electric models are already on sale in Norway – the Free, a large family SUV, the Dream MPV and the mid-sized Courage SUV. In other markets it also offers the high-performance Passion saloon.

“The plans we are announcing take our recently strengthened cooperation with Dongfeng to an all-new dimension of an international partnership to the benefit of customers around the world,” said Antonio Filosa, Stellantis CEO.

“With this new chapter in our collaboration, we will give our customers an even greater choice of competitive products and pricing, leveraging the best of Stellantis’ global footprint alongside Dongfeng’s access to China’s advanced new energy vehicles ecosystem.”

The two groups already collaborate in China, where Dongfeng is set to build four new Peugeot and Jeep models in the coming years.

The announcement is the latest step in a growing movement by Chinese car makers to establish a manufacturing presence in Europe.

BYD is set to open its first factory in Hungary later this year and Xpeng is in talks with Volkswagen to acquire existing factory space. Stellantis has also previously announced it will build the Leapmotor C10 SUV at its plant in Zaragoza, Spain, and MG has also selected Spain as the site of its first European factory under Chinese ownership.