Chinese Auto Giant Chery Considers UK Manufacturing Plant amid Global Trade Shifts

In a significant development for the UK automotive sector, Chinese manufacturer Chery Auto is evaluating plans to establish its second European manufacturing facility in Britain. The announcement comes as the company seeks to strengthen its position in the European market whilst navigating complex international trade dynamics.

The strategic move was revealed by Chery’s UK director, Victor Zhang, at the Society of Motor Manufacturers and Traders’ annual conference. Zhang emphasised that manufacturing localisation would demonstrate the company’s long-term commitment to the British market, where it has already captured 2% of the electric vehicle sector since launching its Omoda and Jaecoo brands in September.

Market research indicates promising prospects for Chinese automotive brands in the UK, with Zhang noting that 40% of British consumers express willingness to consider Chinese vehicles. The company’s innovative “super” hybrid offering, boasting an impressive 90-mile range on drive-generated energy, has particularly resonated with British motorists.

The timing of Chery’s consideration aligns with broader shifts in global trade relations. British Business Secretary Jonathan Reynolds acknowledged ongoing efforts to negotiate reductions in Trump-era tariffs affecting British automotive, steel, and food and beverage sectors. A recent UK-US trade agreement has decreased tariffs from 27.5% to 10%, providing British manufacturers with a competitive advantage over their EU counterparts.

Chinese automotive investment in the UK has been gaining momentum, exemplified by Geely Auto’s £3 billion investment in Lotus and EVE Energy’s potential £1 billion battery factory near Coventry. These developments reflect a broader trend of Chinese manufacturers seeking strategic positions in Western markets amid US trade restrictions.

The possibility of a new Chery manufacturing facility represents a potential boost for British manufacturing employment and could significantly influence the UK’s position in the evolving global automotive landscape.