Chinese automotive giant Chery is heavily considering setting up production plants in the UK and Europe, as the brand consolidates its multi-national presence.
Amid a period of rapid expansion in Australia, Chery is also preparing to set up factories in Spain and the UK to better service its European markets, the BBC reports.
At present, all Chery vehicles are built in Wuhu, China and exported globally.
However, the brand has agreed a deal with Spanish company EV Motors to manufacturer vehicles at a former Nissan factory in Barcelona.
Victor Zhang, head of Chery UK, last week told the BBC that a local assembly plant is a matter of when rather than if.
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“Barcelona, this is something we are already commited to”, Mr Zhang told the publication.
“For the UK, we are also evaluating. To be honest, we are open for all options and opportunities.
“So I think it’s just a matter of time. If everything is ready, we will do it”.
Chery launched its Omoda sub-brand in the UK last month, introducing the Omoda 5 which has been on sale in Australia since 2023.
A growing network surpassing 60 dealerships has been established in the region, although Chery might focus its manufacturing expansion elsewhere initially.
The carmaker is also weighing up other opportunities throughout Europe, including a possible factory in Italy.
“For such a big investment project, it’s a combination of factors”, Mr Zhang said.
“It’s not just government policy or incentives. You also need to look at the market itself; education, because you need good talented people such as engineers and factory workers; there’s also supply chain, logistics.
“So there will be many factors involved in our final decision”.
The decision to take production offshore has been influenced by Europe’s new tariffs on Chinese electric vehicles (EVs).
Chery is one of a handful of brands which were slugged with a 20 per cent tariffs on EVs it imports to Europe, which doesn’t include the continent’s existing 10 per cent tax on all imported vehicles.
Setting up factories in Europe would allow companies such as Chery to bypass the tariff.
Chery sold 4295 cars in Australia over the first half of 2024, and it’s set to launch two new models Down Under by the end of the year.
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