Chery Considers UK Manufacturing Amid European Expansion Efforts
Chinese automotive powerhouse Chery is contemplating the establishment of vehicle manufacturing operations in the UK, as revealed by a senior company executive. Victor Zhang, the head of Chery in the UK, stated that a decision is “a matter of time” as the company looks to strengthen its presence in the European automotive market.
Chery, which is already in the process of launching production facilities in Spain, is intent on adopting a “localised” strategy tailored to meet the needs of European consumers. Zhang refuted allegations that the company’s overseas exports benefit from unfair subsidies.
Founded in 1997, Chery has grown to become one of China’s largest automotive manufacturers, and it currently leads the country in vehicle exports. To further its international ambitions, Chery has unveiled two new brands—Omoda and Jaecoo—specifically aimed at overseas markets. The Omoda brand recently debuted in the UK, introducing the Omoda 5, available in both electric and petrol variants, alongside a commitment to expand its dealership network from 60 to over 100 locations by year-end.
The competitive landscape for the UK automotive market is intensifying as other Chinese manufacturers, such as BYD and SAIC, also eye to capitalize on this lucrative opportunity. BYD has aggressively expanded its dealership presence across the UK, while SAIC has established itself with the classic British MG brand.
With current European models being manufactured at Chery’s headquarters in Wuhu, China, plans are underway to shift local production. The company has secured a collaboration with EV Motors in Spain to produce Omoda and Jaecoo models at a former Nissan factory in Barcelona. Plans for additional production sites, including the UK, remain under consideration.
Zhang indicated that while Barcelona is a confirmed investment location, the UK remains a viable option for an assembly plant. “It’s just a matter of time. If everything is ready, we will proceed with plans for the UK,” he noted.
In response to Chery’s expansion plans, the UK’s Department for Business described the country’s automotive sector as “thriving” and expressed optimism regarding potential investments. Chery’s international aspirations extend beyond the UK, with discussions about establishing production facilities in Italy also taking place.
Zhang clarified that the final decision on production locations will be influenced by numerous factors beyond mere financial incentives, including market conditions, workforce availability, and supply chain logistics.
Chery’s motivation to localize production has been fueled by recent EU tariffs imposed on imported electric vehicles from China amid claims of unfair competition tied to subsidies. Establishing factories in Europe would alleviate these tariff concerns while allowing Chery to seamlessly integrate into local markets.
As China’s domestic automotive market continues to flourish, with over 30 million vehicles sold annually, Chery aims to expand its global footprint. Despite Chinese brands currently representing about 5% of the UK car market, experts warn that this share could rapidly increase, driven largely by competitive pricing.
