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9 December 2024

Where are our electric company cars built?

Have you ever wondered where the increasingly popular electric company cars are produced? The answer might surprise you, especially in light of the recent European import tariffs on electric vehicles manufactured in China.

Electric Cars in Numbers

According to the European Alternative Fuels Observatory, electric vehicles now account for over a quarter of all new car registrations in Belgium. If current trends continue, the milestone of 100,000 new EVs could be reached by the end of the year. In the corporate sector, the numbers are even more striking: in the first half of 2024, 34.4% of newly registered company cars were electric.

Leasing companies report similar trends, with eight out of ten new orders being for electric vehicles. It’s only a matter of time before Belgium’s company car fleet is predominantly emission-free.

Tesla vs. BMW

Tesla’s Model Y remains the most popular choice among company car drivers in Belgium, but the BMW iX1 is rapidly gaining ground. Volvo also performs well with its EX40, although the spotlight is increasingly on its smaller sibling, the EX30. This compact model is currently produced in China.

Other popular EVs, like the BMW iX3, MG 4, and Tesla Model 3, also come from Chinese factories. Clearly, the average company car driver isn’t overly concerned about the origins of their vehicle.

Moving Production Closer to Home

Europe, however, is taking a different stance. New import tariffs on Chinese-made EVs underscore this shift. Whether these measures will impact sales depends largely on how manufacturers adjust their pricing. In response, several brands are relocating production to Europe:

  • Volvo will assemble the EX30 in Ghent, Belgium, starting in 2025.
  • BMW plans to move iX3 production to Hungary by 2026.
  • BYD is constructing a new factory in Hungary.
  • Polestar is transferring part of its production to South Korea and the U.S.
  • MG is reportedly considering producing the MG 4 in Spain.

Where Is Your EV Made?

Here’s a breakdown of popular electric vehicles and their production locations:

  • Alfa Romeo Junior – Tychy, Poland
  • Audi Q4 e-Tron – Zwickau, Germany
  • BMW iX1/iX2 – Regensburg, Germany
  • BMW iX3 – Shenyang, China
  • Volvo EX30 – Zhangjiakou, China (from 2025: Ghent, Belgium)
  • Tesla Model 3 – Shanghai, China
  • Tesla Model Y – Berlin, Germany & Shanghai, China
  • VW ID.3, ID.4, ID.5 – Zwickau, Germany

This diverse list highlights the mix of European and Chinese production sites. While Chinese-made EVs dominate the market today, the trend toward European manufacturing is steadily gaining momentum.

Conclusion

The origin of electric vehicles is becoming an increasingly relevant topic, particularly as European regulations and production strategies evolve. For now, buyers and companies don’t seem overly concerned about where their EVs are made, but this could change as more brands shift to local production. One thing is certain: the rise of the electric company car is unstoppable, no matter where it’s built.