EU tariffs on Chinese electric vehicles were introduced to support European manufacturers, but they are also contributing to a shift in strategy among Chinese companies. Rather than relying solely on exports, several manufacturers are increasing their focus on establishing production capacity within Europe, reflecting a broader “local for local” approach.

This trend is visible across the automotive and battery sectors, where Chinese firms are exploring or developing projects in multiple European countries. The outcome for individual markets, including Poland, will depend on investment conditions, regulatory frameworks and geopolitical considerations.

When selecting locations for large-scale manufacturing projects such as battery plants, investors typically assess energy costs, labour availability, logistics, incentive schemes and regulatory stability. Within Europe, Hungary and Spain are often cited alongside Poland as competing destinations, reflecting their differing cost structures and policy approaches.

Chinese automotive brands have expanded their presence in several European markets, including Poland. However, claims of “double-digit” market share in Poland in 2025 should be treated with caution. While registrations of Chinese brands have increased rapidly, publicly available industry data suggests their overall market share remains below 10 percent, albeit growing. In the plug-in hybrid segment, Chinese manufacturers have gained share, but statements that they account for over half of new registrations are likely overstated. The broader trend remains that demand for electric and hybrid vehicles in Europe continues to grow, while affordability constraints persist, creating opportunities for new entrants.

Poland’s industrial and logistics sector continues to show stable demand. Annual gross take-up has exceeded 6 million sqm in recent years, although this varies depending on methodology and timing. New supply has slowed compared with peak levels, and vacancy rates in the range of 7–8 percent are broadly consistent with market reports. A high share of lease renegotiations reflects tenant retention rather than a clear expansion in new demand.

Comments from market participants highlight differences in how Chinese investors perceive European markets. Jan Kamoji-Czapiński of Colliers said: “In China, investors are accustomed to a model where the administration acts as a comprehensive service centre, supporting the investor at every stage – from permits to recruitment. In Europe, they encounter a fragmented system of institutions, which can be a source of uncertainty… they are increasingly turning to professional consultants in tax, legal and property matters.” Tammy Tang, Managing Director of Colliers in China, added: “Chinese investors are familiar with Western Europe and appreciate its mature industrial structure. At the same time, interest in Poland has been growing significantly over the last five years… investors analyse the stability of the business environment, the availability of workers and openness to foreign capital.”

Energy costs remain a key factor in battery production. Spain has generally reported lower industrial electricity prices than Poland and Hungary in recent periods, although exact figures vary depending on contracts, subsidies and market conditions. Poland’s electricity grid is widely considered reliable, though precise comparative uptime figures are difficult to verify across countries. Labour costs in Hungary are typically lower than in Poland and Spain, while Poland benefits from a relatively large workforce, including foreign labour. Spain offers access to a broader labour pool but is often seen as more regulated.

From a logistics perspective, Poland’s proximity to Germany and major EU manufacturing hubs is a recognised advantage, particularly for automotive supply chains. Access to Baltic ports such as Gdańsk and Gdynia supports trade flows. Hungary, as a landlocked country, relies on overland transport, while Spain’s logistics strengths are more regionally focused.

In terms of incentives, Hungary has actively used state aid to attract industrial investment, often through individually negotiated packages. Poland’s system is more standardised, based on instruments such as the Polish Investment Zone, offering tax incentives with regional variations. While Poland is generally seen as a stable regulatory environment, investor perception can be influenced by political signals and broader geopolitical positioning.

Geopolitical considerations are playing a growing role in investment decisions. Poland’s alignment with the United States and its cautious stance towards China may be viewed differently by investors compared with countries that pursue a more open approach to Chinese capital. There is evidence that some investment projects in Europe have been reassessed or relocated between countries, although such decisions are typically driven by a combination of economic, regulatory and political factors rather than geopolitics alone.

The expansion of Chinese manufacturing capacity in Europe is progressing, although unevenly across markets. For Poland, the outcome will depend on how it balances competitiveness, regulatory clarity and geopolitical positioning. The question is not only whether Chinese capital will enter Europe, but how individual countries position themselves within this evolving industrial landscape.

Source: Colliers