E-Week Highlights | BYD Is in Talks with Stellantis and Other Automakers to Acquire European Factories; Li Xiang Says Li Auto Will Not Initiate Layoffs

Why It Matters

These moves signal Chinese EV firms’ push to secure production capacity abroad and deepen market penetration, while domestic launches and financing underscore rapid scaling and talent strategies in a competitive NEV landscape.

Key Takeaways

• BYD negotiating to buy idle Stellantis plants in Italy and elsewhere
• XPENG also seeking a Volkswagen factory to speed EU market entry
• Onvo L80 priced at ¥242,800 (~$34k), BaaS version starts at ¥156,800 (~$22k)
• Qijing Auto raises over ¥1 billion (~$140 million) from CATL, Bosch, others
• Li Auto pledges no layoffs, urging AI‑driven talent retention

Pulse Analysis

Chinese EV manufacturers are turning to Europe’s dormant production capacity to accelerate market entry. BYD’s discussions with Stellantis and other automakers focus on acquiring under‑utilised plants, especially in Italy, where lower electricity costs could boost margins. XPENG’s parallel talks with Volkswagen aim to secure a foothold without the high tariffs that typically burden imports, offering a faster path to local assembly and after‑sales support. These strategies reflect a broader trend of Chinese firms seeking to embed themselves in the European industrial ecosystem, leveraging existing infrastructure to meet regional demand and regulatory standards.

Domestically, the NEV sector is witnessing aggressive product roll‑outs and capital inflows. Onvo, backed by NIO’s technology, launched the L80 SUV at roughly $34,000, positioning it as an affordable large‑SUV with optional battery‑as‑a‑service pricing around $22,000. The model benefits from NIO’s extensive battery‑swap network, now approaching 9,000 stations, enhancing consumer convenience. Simultaneously, Qijing Auto secured over ¥1 billion (~$140 million) from strategic investors such as CATL and Bosch Capital, reinforcing its supply chain and accelerating product development. This infusion of capital underscores investor confidence in China’s high‑end smart‑EV brands and their ability to scale quickly.

Talent management is evolving alongside technological advances. Li Auto’s CEO Li Xiang publicly ruled out layoffs, arguing that AI will reshape talent criteria and that a natural attrition process will retain the most adaptable employees. By avoiding forced cuts, Li Auto mitigates reputational risk while positioning itself as an AI‑forward employer. This stance mirrors a growing industry awareness that retaining skilled personnel capable of leveraging AI tools is critical for maintaining competitive advantage in a rapidly innovating market.