Chinese Car Giant Chery Weighs Up ⁤UK Production

Chinese car giant⁢ Chery is considering producing cars in the UK, with executives at the company stating that it’s only a “matter of time” ‍before a final decision is made.​ Victor⁣ Zhang, head of Chery Automobile UK, ‌revealed that the company is ready to produce cars in Spain and is determined to take a “localized” approach to enter the⁢ European ⁤market.

Expansion Plans

Founded in 1997, Chery is ⁤one of China’s largest auto companies and is ‍already China’s largest car exporter. The company has ambitious ⁢plans for further expansion ⁣and has established two new⁤ brands, Omoda‍ and‌ Jaecoo, completely ⁢focused on the⁤ international market.

Last month, the Omenta was officially launched in the UK, ‌with the company ⁤already selling⁤ the mainstream Omenta 5 sport utility vehicle‍ (SUV) in ‌electric and petrol versions. Chery ⁢has also built a‍ network⁣ of 60 ​dealers and hopes to have more than 100 ⁣dealers by the end of this year.

Competition in the ‌UK Market

Chery is not the ​only​ Chinese manufacturer to see the ‌UK market⁤ as potentially lucrative. BYD, which ⁢has been ⁤competing with Tesla⁣ for⁤ the title of the world’s⁤ largest electric car ‌manufacturer, has also opened ⁢dozens of dealerships across the UK. SAIC already has‍ a ⁢sizeable presence in ⁤the UK, selling cars under the ‌classic British MG brand.

Production Sites

Cars sold in ‌Europe are currently built at⁤ Chery’s manufacturing headquarters ⁤in Wuhu, Anhui province, China. However, ⁢the ‌company has already reached an agreement with Spanish car company ⁤EV Motors to produce⁤ the Omoda and Jaecoo models at ⁢a former Nissan plant in Barcelona. Chery⁤ is also evaluating ⁢the UK as ​a potential ​production site.

“Barcelona, this is something we have committed ⁣to,” Mr⁤ Zhang explained. “As ‍for the UK, ‍we are also evaluating‍ it. To be honest, we⁢ are open to all options ​and opportunities.⁤ So I ‍think‍ it is just​ a matter of time.‍ If‍ everything is ready, we will do it.”

UK Government ‍Response

A spokesman for the UK government’s Department of ‌Business described the UK’s automotive industry ​as “booming”.⁤ They stated, “While we cannot speculate on business investment ‍decisions, we welcome Chery International’s launch of the ‘Omenda’ car in the UK and are positive about any new UK investment.”

Factors‌ Affecting ⁣the Decision

Mr Zhang denied that the ⁣decision would depend ⁤on which country offered the best incentives. He stressed that ‍”for ⁤such a​ large-scale investment project, ​it is‍ a ⁣multi-faceted consideration… ‍It is not just government policies or incentives,​ but also the market itself; ⁣education, because you need good talent, ⁢such as engineers and factory workers;​ and supply chain, logistics and other factors.”

EU ⁢Tariffs

The pressure from⁤ the ⁢EU to impose high‌ tariffs on ⁣Chinese ‌electric vehicle imports⁢ has‌ increased the demand for ​Chinese companies to establish production⁢ bases in Europe. By producing its products in Europe, Chery will be able to avoid paying those tariffs,‍ but Zhang insists⁢ his company remains committed to​ local production.

“We’re ‍not ‌trying to use ⁣any ⁢unfair methods,”⁢ he noted. “We want to adapt to the local‌ market and ‌offer⁢ the best products, using ⁣the best dealers. Localisation is ⁤the ‍only⁢ strategy in the long term.”

Chinese Car Brands in the UK

Chinese‍ car brands‍ still account for only ⁤a relatively small proportion of car sales in the⁣ UK, around 5%. However, ⁣established automakers fear that number could grow quickly‍ as prices offered by Chinese ⁣brands are expected to play a key role​ in the market.