Hongqi is looking to achieve one million annual sales soon, and sees European expansion as a key part of its strategy. By Stewart Burnett
Hongqi, best known as Chairman Mao Zedong’s state limousine brand, has completed a dramatic seven-year revival and is now targeting aggressive expansion into European markets. The automaker, owned by state-controlled FAW, sold approximately 412,000 vehicles during 2024 representing 17.4% growth and now plans to introduce 15 electric and hybrid models across 25 European markets by 2028.
It was not so long ago that Hongqi faced total irrelevance, selling fewer than 5,000 vehicles in 2017 before FAW recruited former Rolls Royce Design Chief Giles Taylor to modernise its styling and broaden the product lineup with electric vehicles and SUVs. The turnaround has been substantial, with sales targeting around 500,000 units for 2025.
Half of the automaker’s new sales come from battery-electric and plug-in hybrid models, in-keeping with the trend among Chinese OEMs. It does not plan to slow down: “Beyond 2025, we have ambitions to get to a million cars,” Taylor, who joined FAW as Global Vice President for Design in 2018, told Reuters without providing a concrete timeline.
Hongqi shipped an initial 600 electric sedans and SUVs to Europe during November 2024 but sold only 771 vehicles across the continent through October 2025. Taylor acknowledged that in many European markets—particularly Germany—consumers remain loyal to local brands. Overcoming this will prove challenging but he believes Hongqi can offer equal or superior products with cutting-edge technology at price points Western marques cannot compete at.
Features include AI cockpit systems in the Tiangong electric lineup offering voice-activated controls, memorised seat preferences and mood-based playlist recommendations. Taylor told Automotive News Europe that Hongqi’s ties to the state government enable access to technology “at prices that you just wouldn’t believe”. Regarding sticker prices he remarked: “Do you really want to spend €5 for a Starbucks coffee when there’s a new little startup brand around the corner selling coffee for €1.50?”
Hongqi showcased its latest model, the EHS5, at IAA 2025 in Munich
Now, Hongqi is exploring potential production sites across Europe to try and circumvent EU tariffs on Chinese-made electric vehicles. In an interview with Automotive News Europe State-owned automakers have generally faced the worst tariffs: SAIC faces duties of up to 45.3% including the 10% base rate.
FAW stated in 2023 that it wants 25% of Hongqi’s sales originating from overseas markets by 2030 to help it stay afloat amid the ongoing price wars in China. Price warring only worsened in 2025 when BYD announced deep price cuts across its model lineup. Beyond Europe, Hongqi is also looking to Latin America, launching three models in Mexico in 2025. It also began taking orders for its ultra-premium Golden Sunflower sub-brand in Kuwait this year, while also entering other markets in the MENA region.
In a comment to Reuters, Tu Le, Founder of consultancy Sino Auto Insights, questioned whether Hongqi can replicate its recent domestic success overseas: “Outside China, Hongqi loses that natural home-field advantage of being the national champion; of being the president’s car,” Le remarked. “They’ve got to figure out how to sell themselves to people who have no idea what Hongqi stands for.”
For now, the automaker is taking small steps to assert a presence in Europe, including displaying at IAA 2025. The EHS5 mid-size electric SUV showcased at Munich—the latest addition to Hongqi’s model lineup—features an 85-kilowatt-hour battery, delivering a 550 km range.
