Chinese automaker Changan  is planning to establish a manufacturing plant in Europe to support its growing sales ambitions on the continent, a senior executive told Reuters on Wednesday.

“We're committed to being in Europe, making in Europe for Europe,” said Nic Thomas, Changan's European head of marketing, sales, and service. Speaking during a test drive event for the company’s electric Deepal S07 SUV near London, Thomas confirmed that the company is actively exploring locations for the factory.

While he declined to provide a timeline for the facility’s construction, Thomas said Changan is confident in reaching sales volumes that would justify local production. “We're already in the planning stages,” he added.

Changan announced in March that it aims to launch electric vehicles in 10 European markets this year. In the UK, the company plans to begin selling the Deepal S07 later in 2024, with customer deliveries starting in September.

Globally, Changan ranked as the 16th largest automaker in 2024, selling just over 2.2 million vehicles, according to automotive analyst Felipe Munoz. Of those, around 600,000 were sold outside China. This year, Changan aims to grow that figure to 1 million.

The company joins a growing list of Chinese automakers expanding into Europe. BYD (002594.SZ) and Chery (CHERY.UL) have already entered the European market and announced plans for local production. BYD is constructing an EV plant in Hungary, while Chery plans to build cars in Spain through a partnership with local firm Ebro.

In a related development, Geely (GEELY.UL) announced on Wednesday that it is launching its namesake brand in the UK, with its first offering being the electric EX5 SUV.