Chinese automaker Chery is actively evaluating the possibility of setting up a manufacturing facility in the United Kingdom. Chery’s UK head, Victor Zhang, has stated that it is “just a matter of time” before the company makes a final decision on this potential investment.
Expanding Chery’s European Footprint
Chery is looking to take a more “localized” approach to the European market, rather than solely exporting vehicles from China. The company has already committed to establishing a production site in Spain, where it will manufacture cars for its Omoda and Jaecoo brands.
The UK is one of the options Chery is considering as it seeks to expand its European manufacturing footprint. Zhang has said the company is “open for all options and opportunities” when it comes to potential production locations in the region.
Factors Influencing Chery’s Decision
Chery has indicated that its decision on a UK manufacturing facility will be based on a range of factors, not just government incentives or policies. The company is considering the strength of the local market, availability of skilled talent, and the robustness of the supply chain and logistics infrastructure.
The recent EU tariffs imposed on Chinese electric vehicle imports have increased the pressure on Chery to establish more production capacity within Europe. Building cars in the UK would allow Chery to avoid these tariffs.
Avoiding EU Tariffs a Key Consideration
One of the key drivers behind Chery’s push to establish manufacturing bases in Europe is the recent imposition of steep tariffs by the EU on imported electric vehicles from China. By building its products locally, Chery would be able to avoid these tariffs, which the EU justified as a response to “unfair subsidies” enjoyed by Chinese carmakers.
However, Chery’s UK head denied that the company’s exports have benefited from any unfair advantages, insisting that the company’s strategy is to “be adaptable to the local market” and provide the “best products” through a “localized” approach.
UK Government Response
The UK government has welcomed Chery’s launch of its Omoda brand in the country and has stated that it would view any new investment from the company in a positive light. A spokesperson from the Department for Business and Trade said the UK has a “thriving automotive sector” and would welcome Chery’s potential new facility.
Chery continues to evaluate its options and the prospect of the company establishing a manufacturing presence in the UK. It remains an intriguing possibility to strengthen the country’s automotive industry.
Crafting Excellence, Driving Innovation – Chery’s UK Manufacturing Facility
