Is Chery Considering a New Manufacturing Base in the UK?
Among China’s biggest automakers, Chery is considering opening a production unit in the United Kingdom. A decision should be made regarding this shortly. Committed to a “localized” approach for the European market, the company—also ready to start manufacturing in Spain—is
How is Chery Expanding Its Footprint in Europe?
Established in 1997, Chery has evolved into China’s top vehicle exporter focused on more global development. Recently introducing its two brands, Omoda and Jacob, primarily aimed at the worldwide market, Omoda debuted in the UK last month with the Omoda 5 SUV, which comes in electric and gasoline-powered models. Aiming to reach 100 by the end of the year, Omoda has already set up a network of 60 dealerships throughout the UK.
Who Are Chery's Competitors in the UK Market?
Chery targets the UK market in partnership with others. By opening more outlets, BYD, a competitor fighting with Tesla for the top spot among electric vehicle manufacturers, has also become more visible in the UK. Another Chinese automotive behemoth, SAIC, is well-known in the UK and markets vehicles under the venerable British MG name.
What Are Chery's Future Plans for a UK Assembly Plant?
Chery’s European cars are now produced at its headquarters in Wuhu, Eastern China. The corporation is ready to reverse this, though. By cooperating with the Spanish company EV Motors, Chery has produced Omoda and Jaeco models at a former Nissan plant in Barcelona. Chery is, however, also thinking about other sites, notably the UK. “Barcelona, we already have committed ourselves to.
We are also assessing the UK. To be straightforward, we welcome all possibilities and choices. I do believe it is only a question of time. Should everything be ready, we will proceed, a corporate official clarified.
What is the UK Government's Stance on Foreign Investment?
“While we cannot speculate on commercial investment decisions, we welcome Chery International’s Omoda launch in the UK and would positively view any new investment in the UK,” a Department of Business spokesman said, characterizing the automotive sector as “thriving.”
Where Else Is Chery Exploring Production Opportunities?
Chery is also looking at prospects elsewhere in Europe, particularly Italy. Talks concerning possible manufacturing sites are in progress with the Italian government. Government incentives will not determine the outcome alone. “For such a large investment project, it’s a combination of elements,” a firm spokesman said. It is not only government policy or incentives here. You must also consider the market, supply chains, logistics, and education; you need outstanding individuals like engineers and industrial workers. Our ultimate choice will entail numerous elements.
How Are Tariffs Affecting Chery's Local Production Strategy?
Since the EU put hefty taxes on Chinese electric car imports in July, the drive to set manufacturing bases in Europe has been strengthened. China has objected to the EU’s decision, based on assertions of “unfair subsidies” allowing Chinese automobiles to be sold cheaply overseas, as protectionism. Chery would get around these taxes by manufacturing automobiles in Europe. Emphasizing its dedication to local manufacturing, the corporation said, “We are not aiming to employ unfair tactics. Using the most outstanding dealerships, we wish to be flexible enough for the local market and offer the finest items. In the long term, the only approach is to be localized.
What Are the Market Dynamics and Future Prospects for Chinese Car Brands?
With over 30 million automobiles sold yearly, China’s home automotive market is still significant. With over 5 million vehicles shipped last year, a 64% rise from the previous year, Chinese autos also have a sizable worldwide market share. Chinese brands account for just 5% of automobile sales in the UK right now. Established manufacturers, however, are concerned that this number might climb quickly due to competitive pricing for Chinese brands.
