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Back to Case StudiesThe client, a fast-growing Chinese new energy vehicle (NEV) manufacturer, sought to expand its presence in Europe amid accelerating electrification trends, tightening sustainability requirements, and rising expectations for local production and ESG compliance.
The project aimed to help the client define a compliant and competitive European entry model covering business structure design, sales company setup, localization feasibility, and regulatory risk management.
ARC Group was engaged to deliver a structured market entry strategy that aligned governance, operations and regulatory readiness for a successful EU expansion.
The opportunity
Europe’s mature NEV ecosystem and strong government incentives presented a significant opportunity for the client to capture market share, but also demanded careful planning around localization, rules of origin, ESG obligations and corporate structure.
By understanding viable entry models, optimal establishment locations and regulatory pathways, the client could design an expansion approach that balanced speed, compliance and long-term scalability.
Our Approach
ARC Group began by evaluating multiple business model options, including wholly owned subsidiaries, joint ventures and contract manufacturing, and defined a governance and operating model that connected China and Europe through clear financial and operational flows.
We then screened and ranked candidate countries for holding, sales and production entities using cost, talent, logistics and supply-based metrics, followed by site shortlisting and implementation planning.
Finally, we built a detailed EU regulatory and risk catalogue covering tariffs, rules of origin, ESG, data, and anti-circumvention requirements, and defined mitigation actions and compliance checkpoints to ensure a fully compliant and well-prepared market entry plan.
The Impact
ARC Group delivered a complete blueprint for the client’s European business structure, equity setup and governance framework, enabling a clear and compliant operating model.
We identified optimal establishment locations for holding, sales and production entities, supporting efficient and cost-effective scaling.
ARC Group also clarified localization feasibility and designed a phased market entry roadmap aligned with EU policies and incentives.
Equipped with a comprehensive EU regulatory and risk-management plan, the client gained a secure foundation for its European expansion.
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