Although Bulgaria has traditionally been of relatively little interest to China, Chinese activity there is expanding, and ambitions are growing. In this context, Chinese automotive companies are increasing their presence in both manufacturing and the consumer market.
Key takeaways:
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Chinese carmakers and automotive parts manufacturers are strengthening their position in Bulgaria as they step up efforts to penetrate EU markets.
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Chinese brands are becoming more active on the Bulgarian market and are gaining a foothold through public procurement.
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Bulgaria is emerging as an important link in Chinese carmakers’ efforts to build cross-border automotive supply chains in Southeast Europe.
China has been a latecomer to Bulgaria’s geopolitical scene. Its initial attempts to gain influence through extensive infrastructure, energy and transport projects, as well as state-to-state loans, largely failed due to entrenched local business interests and a strong pro-Russian lobby in some sectors. However, Beijing is now adapting its approach, placing greater emphasis on society, culture and the economy rather than focusing solely on political elites.
China’s push for academic cooperation is strengthening ties with Bulgarian universities and research institutions, while a greater economic focus is evident as more Chinese banks enter partnerships in the country. Investments by firms from the “Middle Kingdom” have been on an upward trend since 2021, and state institutions are increasingly receptive to Chinese projects.
Car production
Chinese car production in Bulgaria has seen a few false starts. In 2012, BYD signed a contract with a Bulgarian partner to build an assembly plant for electric buses, aiming to enter the EU market. The project ultimately failed. Despite this, numerous imported electric buses from China have made their way onto Bulgarian roads, thanks to EU funding. There is also, albeit still informal, renewed interest in reviving efforts to establish electric bus production in the country.
Great Wall Motor became the first Chinese company to establish a car assembly factory in Europe in 2021, located in northern Bulgaria. Its ambitious plan to produce more than 50,000 vehicles using imported car parts from China never materialised. The project, pursued jointly with the Bulgarian firm Litex Motors, ultimately failed, and operations ceased in 2016.
The company was later embroiled in a scandal when the Bulgarian interior ministry acquired 290 Great Wall cars in 2018 using EU funds. Quality problems followed, eventually triggering an investigation by the EU’s anti-fraud office. Now, Great Wall Motor is finalizing negotiations with the successor to its former partner, now called Bulgarian Automotive Industry, to reopen the assembly plant at the same site near the town of Lovech. Production is expected to begin in 2026 with the ORA brand, utilizing most parts imported from China, with some sourced in Bulgaria and the wider region.
Other Chinese automotive firms are also eyeing Bulgaria. NIO’s subsidiary, Onvo, has explored options to start production in the country, but no progress has been made so far. Dongfeng is likewise considering production investments.
Car parts production
Meanwhile, in the automotive parts segment, Chinese companies have already established a solid position. ZS Europe, owned by Shanghai Unison Aluminium Products, is opening two factories near the city of Plovdiv. The overall investment currently stands at 32 million leva (€16 million), and the plants will produce various aluminium-based parts. The products will be destined for companies with Chinese majority and minority ownership, including Volvo and Stellantis. The second plant, currently under construction, will rely almost entirely on automated processes, employing a minimal number of local staff. Notably, ZS Europe’s business plan is based on localization, with components sourced from local and regional suppliers in Southeast Europe. The end products are destined for the EU market. The coming months will bring greater clarity on which Bulgaria-based auto parts firms will partner with this new Chinese player.
A yet-unnamed Chinese firm is launching a greenfield investment project in electric transformers for use in the auto parts industry. The company, which will serve local, regional and EU markets, will be located in the town of Sevlievo, which already hosts similar production by non-Chinese companies. Operations are expected to begin in 2026.
Given these trends, Beijing may be expected to bid again for the concession of Plovdiv Airport. In 2016, China’s Hainan Group acquired the concession, but it was later terminated due to internal leadership issues within the company. With the growing presence of Chinese firms in Bulgaria and across Southeast Europe, renewed Chinese interest in the forthcoming concession procedure is all but assured.
Chinese automotive companies active elsewhere in Europe are also seeking established suppliers in Bulgaria for their new plants. BYD is one such example. Chinese managers at the company are discussing cooperation agreements with several car parts manufacturers, including Kostal Bulgaria Automotive, to supply BYD’s planned large car production factory in Hungary. Kostal Bulgaria Automotive is a major producer of high-tech electronics and electromechanical components for the automotive industry, but it has struggled to maintain a full order book. Cooperation with BYD could offer a way out of its current difficulties.
Car market
Beyond manufacturing, Chinese companies are also rapidly expanding their presence on the Bulgarian car market. Dongfeng’s aggressive positioning is particularly noteworthy. The firm entered in late 2021 but has visibly accelerated its efforts over the last two years, opening 13 dealerships around the country and offering 12 different vehicle models. Its marketing approach is also notable: the company has sponsored various folk and pop concerts and festivals, the popular prime-time talk show Big Brother, fruit festivals, Chinese cultural events (such as the Dragon Boat Festival), and has organised a national celebration for fans of Chinese cars. Its advertising has been intentionally controversial to attract attention. Creatively, the company has showcased its vehicles in pop-up exhibitions in the yards of technical and engineering schools.
As of September 2025, Chinese brands hold a 3.2% share of the Bulgarian car market, which has doubled within the last 12 months. Currently, only three Chinese producers sell their cars in Bulgaria, but this number is expected to rise to seven by 2026.
Dongfeng is also placing content in online sports media and has sponsored the national basketball all-star game. More strategically, the company is positioning itself to capture market share in smaller municipalities and to enter the public procurement market in these areas. Dongfeng showcased its vehicles at the 2025 “Municipalities’ Fair” and has already been selected by some municipal authorities to supply EVs. The company is exploring options for a factory in the EU, with the region around Burgas among the final locations under consideration. A key partner, Shanghai Unison Aluminium Products, recently opened the first of two plants in Bulgaria, suggesting a potential tie-up.
Other Chinese car manufacturers are also stepping up their game. NIO is preparing its expansive entry into the Bulgarian market in 2026. The firm is finalizing its expansion across Europe, with the latest wave including Bulgaria, Austria, Hungary, Luxembourg, Poland, Czechia, Greece, and Cyprus. The company has formed partnerships with well-established EU mobility providers, including the JAP Group and Motordynamics Group.
Geely and Lynk & Co. also made their debuts in 2024, with the former creating a national distribution system focused on large cities and higher-income consumers. Its marketing and advertising strategy is much more traditional compared to Dongfeng’s. The Spanish brand Ebro, owned by China’s Chery, is also entering the Bulgarian market as part of its efforts to expand and internationalise. In 2025, Leapmotor entered the Bulgarian market with the help of Stellantis, its joint-venture partner.
National and regional automotive ecosystems
China’s blitzkrieg strategy for entering the Bulgarian car market is being largely replicated across Southeast Europe. While it is part of the broader EU–China clash over cars, subsidies and critical materials, this approach is guided by a longer-term perspective. It aims to create national and regional automotive ecosystems across manufacturing, supply, marketing and sales. In certain areas, such as the production and supply of car parts, Chinese commercial entities may displace or acquire existing companies.
The evolving example of Bulgaria points in this direction, particularly in the automotive parts supply segment and in public procurement of electric vehicles. This trend may well extend into final vehicle assembly if Chinese companies continue to build up ownership stakes in Western carmakers. For instance, Dongfeng remains interested in increasing its share in Stellantis, which has opened a new plant in Serbia.
Chinese automotive companies are applying a variety of positioning strategies, from direct market entry to partnerships and the use of Western-registered brands based in other EU countries. China is now reproducing the dynamism of its car sector on the “old continent” at impressive speed, potentially pre-empting the responses of European policymakers and businesses.
