Chinese automotive giant Chery is considering the possibility of establishing car manufacturing operations in the UK, according to a senior executive.
He indicated that while Chery is currently preparing to set up production in Spain, the company is keen to adopt a “localized” strategy for the European market.
Zhang refuted claims that Chery’s exports have benefited from unfair subsidies. Founded in 1997, Chery is one of China’s largest car manufacturers and the country’s leading vehicle exporter, with plans to expand further.
To advance these ambitions, Chery has launched two new brands, Omoda and Jaecoo, specifically targeting the international market.
Last month saw the official launch of Omoda in the UK, where it has begun selling the Omoda 5 SUV in both electric and petrol versions.
The company has established a network of 60 dealerships and aims to exceed 100 by the end of the year.
Chery is not the only Chinese carmaker eyeing the UK market. BYD, which competes with Tesla for the title of the world’s largest electric car manufacturer, has also opened numerous dealerships in the UK.
Similarly, SAIC, another Chinese manufacturer, is already well-established in the UK, selling vehicles under the historic British MG brand.
Currently, Chery’s European vehicles are produced at its headquarters in Wuhu, Eastern China. However, this is expected to change.
The company has a partnership with Spanish firm EV Motors to manufacture Omoda and Jaecoo models at a former Nissan plant in Barcelona, but it is looking through additional locations.
Earlier this year, Chery mentioned the possibility of a UK assembly plant, which remains a viable option.
Zhang commented, “Barcelona is something we are already committed to. For the UK, we are also evaluating.
To be honest, we are open to all options and opportunities. So I think it’s just a matter of time. If everything is ready, we will proceed.”
A Department for Business spokesperson described the UK’s automotive sector as “thriving” and expressed a positive view toward any new investments. However, they refrained from speculating on specific commercial decisions.
Chery is also considering other European locations, including Italy, and Zhang emphasized that the decision will involve multiple factors. “For such a significant investment project, it’s a combination of factors,” he said.
“It’s not just government policy or incentives. You also need to consider the market itself, the availability of skilled workers like engineers and factory staff, and supply chain logistics.”
The urgency for establishing European manufacturing sites has increased following the EU’s imposition of high tariffs on Chinese electric vehicle imports in July.
The EU justified these tariffs by citing “unfair subsidies” that enabled Chinese cars to be sold cheaply abroad, which they claimed undermines local manufacturers. China has accused the EU of protectionism.
By producing vehicles in Europe, Chery could avoid these tariffs. Nonetheless, Zhang maintained that Chery is committed to local production and not employing unfair methods.
“We want to adapt to the local market and provide the best products through the best dealerships. Localization is the only long-term strategy,” he asserted.
The UK has yet to announce whether it will impose similar tariffs.
China’s domestic car market is extensive, with over 30 million vehicles sold annually, and its global market share is growing, with around 5 million cars exported last year—a 64% increase from the previous year.
In the UK, Chinese brands currently represent about 5% of car sales, but this share is expected to rise, partly due to competitive pricing.
