China’s Leapmotor will build affordable electric cars at its partner Stellantis’ plant in Tychy, Poland, which will also compete with Dacia Spring, two sources close to the situation told Reuters, according to News.ro.

In this way, Leapmotor will become one of the first car manufacturers from China to start production in Europe, Reuters reports.

Production of Leapmotor’s T03 small electric car could begin by the end of June using SKD’s technology, which involves turning partially assembled kits into finished cars, one of the sources said.

Leapmotor has chosen the Polish plant of its partner Stellantis as part of a joint venture agreed last year.

An affordable electric car that can compete with the Dacia Spring

Tychy will provide low costs for a product designed to be accessible to a wide range of consumers, the second source said.

Both sources declined to be identified because the details are not public. A Stellantis representative declined to comment. Leapmotor representatives could not be reached for comment.

With a range of 280 kilometers, the T03 is already being imported into some European markets, including France, starting at around €20,000 ($21,642).

This model will help Stellantis to develop its offer of low-cost electric cars and compete with Renault’s Dacia Spring and the BYD group’s Seagull model.

Leapmotor told Reuters this month that the joint venture’s executive team was in place and that sales of another model, the C10 SUV, Leapmotor’s first electric vehicle designed specifically for overseas markets, would soon begin in Germany, France, Italy and Spain.

The Chinese go to Europe with cheap models

Chinese automakers are bringing a number of cheaper electric car models to Europe, which has pushed European automakers into a race to develop more affordable electric cars.

Trade tensions are high between China and the European Union, which is testing whether Chinese electric car makers receive unfair government subsidies.

Chinese manufacturers are also looking to build assembly plants in Europe. BYD has announced plans to build a plant in Hungary, while rival Chery Auto is evaluating options for similar investments, including possibly in Italy and Spain.

Leapmotor and Stellantis announced a joint venture

Last year, Stellantis said it was buying a 21 percent stake in Leapmotor in a $1.6 billion deal that would give it a new foothold in China, the world’s largest auto market by sales.

As part of the deal, the two automakers also announced a joint venture that gives Stellantis exclusive rights to build, export and sell Leapmotor products outside of China, a first for a Western automaker.

The Chinese regulator this month approved the joint venture, in which Stellantis has a 51% stake.

Media reported earlier this year that Stellantis was eyeing the Mirafiori complex in Turin, Italy, as a base for Leapmotor’s European production, with a planned annual output of 150,000 vehicles.

Located in southern Poland, Tychy is a historic Fiat enterprise. The plant produces several Stellantis vehicles, including petrol and hybrid versions of the Fiat 500, Fiat 600, Jeep Avenger and the new Alfa Romeo Milano, due to be unveiled next month.