Chinese car giant Chery is considering building cars in the UK. Its UK head, Victor Zhang, stated that it is “a matter of time” before the company makes a final decision. Chery is already preparing to build cars in Spain and is determined to take a “localized” approach to the European market.
Chery, one of China’s largest car companies, is the country’s biggest exporter of vehicles and has ambitious plans to expand further. To aid this expansion, the company has set up two new brands, Omoda and Jaecoo, focused entirely on the international market. Omoda has already launched in the UK, selling a mainstream SUV in both electric and petrol-powered versions, and has established a network of 60 dealerships with plans to have over 100 by the end of the year.
The decision to build cars in Europe is partly driven by the EU’s recent imposition of steep tariffs on imports of electric vehicles from China, which the EU said was due to Chinese carmakers benefiting from “unfair subsidies.” By building its products in Europe, Chery would avoid paying these tariffs. However, Chery’s UK head denied that the company’s exports had benefited from unfair subsidies, stating that the company’s strategy is to be “localized” in order to provide the best products and services to the local market.
