Chery, one of China's largest car manufacturers, is evaluating the possibility of building cars in the UK. Victor Zhang, Chery's UK head, told the BBC that it’s only "a matter of time" before the company makes a decision. Chery has already begun producing cars in Spain at a former Nissan factory in Barcelona through a deal with EV Motors. Zhang emphasized that localizing production in Europe is key to Chery's strategy, especially as it helps the automaker avoid EU tariffs on Chinese electric vehicles, imposed due to claims of unfair subsidies.
Chery launched its Omoda brand in the UK last month, selling both electric and petrol-powered versions of the Omoda 5 SUV. The company has already established 60 dealerships in the UK and plans to grow to more than 100 by the end of the year. Other Chinese carmakers, including BYD and SAIC, are also expanding their presence in the UK market, vying for a share of the growing demand for affordable electric vehicles.
Chery's decision to manufacture locally isn't solely driven by avoiding tariffs. Zhang said the decision will also depend on factors like access to skilled labor, logistics, and the broader market conditions. Though the UK could be a prime location, Chery is also in discussions with other European governments, including Italy, for potential production bases. The company’s European expansion reflects China's broader push to capture more of the global car market. While Chinese brands currently account for around 5% of UK car sales, that figure is expected to grow quickly, driven by competitive pricing and increasing interest in electric vehicles.
