The Rise of Chinese Minicar Production in Europe: A Game-Changer for Affordable EVs

Europe’s automotive industry is bracing for a major shake-up as ITB Auto prepares to relaunch production at an idle Lear Corporation plant in Grugliasco, Italy. Backed by an investment of around €100 million, the company will begin producing compact electric minicars under the Chinese Desner brand, with the goal of rolling out 20,000 vehicles annually starting in 2026. The project will not only rehire up to 250 workers but also introduce a new category of affordable EVs to a region where high costs have slowed adoption.

Why Minicars, Why Now?

European cities are increasingly restricting larger combustion vehicles in favor of eco-friendly alternatives. Small, efficient EVs offer a practical solution for congested streets and short commutes, particularly in urban areas where affordability matters most. By manufacturing locally, ITB Auto is also addressing supply chain resilience—a growing concern since the pandemic disrupted global logistics.

China’s Expanding EV Influence

This development highlights a bigger picture: China is no longer just exporting electric vehicles—it’s shaping how and where they’re built. By setting up production inside Europe, Chinese automakers are positioning themselves as direct competitors to established European brands, especially in the subcompact and entry-level EV segment.

For European consumers, the arrival of Desner minicars could be a game-changer. Instead of EVs priced beyond the reach of average buyers, drivers may soon have access to models that balance affordability, practicality, and sustainability.

What It Means for Europe’s Auto Industry

The launch of Chinese-made minicars on European soil could:

• Intensify competition in the compact EV market, pushing European automakers to accelerate low-cost EV strategies.

• Reshape supply chains, as localized production reduces dependence on long-distance imports.

• Raise policy questions around tariffs, subsidies, and the role of foreign automakers in Europe’s green transition.

The Road Ahead

While the Desner project won’t officially begin production until 2026, its impact is already being felt. Dealers, suppliers, and policymakers across Europe are watching closely, recognizing that the affordable EV market is about to get a lot more competitive.

In short, the arrival of Chinese minicars marks more than just a factory reopening in Italy—it signals the beginning of a new chapter in Europe’s electric mobility story.