Chinese carmakers gear up European production to sidestep tariffs, import quota

Chinese carmakers, facing a European Union import quota targeting their hybrid electric vehicles (EVs), are gearing up for more local production to reinforce their go-global drive.

They plan to either splash out billions of yuan to set up their own factories or tap international marques’ idle plants to build their vehicles, looking to sustain a sales boom in one of the world’s major automotive markets.

“Global growth shifts from exporting vehicles to Europe to producing them locally, from...