By Rosemary
Chinese automaker Chery Automobile is intensifying its strategy to expand production across Europe by seeking partnerships with established manufacturers, allowing it to tap into existing factory networks rather than building new plants from the ground up, senior executives said during an industry event in Paris.
The approach reflects a calculated effort to accelerate growth in a competitive market while minimizing the high costs and long timelines associated with constructing new manufacturing facilities. According to company officials, Chery is actively exploring opportunities to secure additional production capacity across the continent, with a focus on forming alliances that can provide immediate access to operational plants.
Yin Tongyue, the company’s chairman, emphasized that leveraging existing infrastructure offers a more efficient path to scaling production in Europe.
He noted that while establishing new factories requires significant investment and time, partnerships can deliver faster results if the right local collaborations are secured. Discussions are ongoing, though specific partners and locations have not been disclosed. France has been identified as one of several potential markets under consideration.
The strategy comes as Chery accelerates its European rollout, following its entry into the region in 2023. The company has introduced multiple brands, including Omoda and Jaecoo, targeting different segments of the market. These launches are part of a broader push by Chinese automakers to gain a foothold in Europe, where demand for competitively priced vehicles—particularly electric models—continues to grow.
Chery’s expansion mirrors the trajectory of rivals such as BYD, which has also rapidly increased its presence in European markets. The influx of Chinese brands has intensified competition, challenging established European automakers and reshaping the industry landscape.
Recent sales figures highlight the pace of Chery’s growth. The company’s European deliveries surged dramatically over the past year, reflecting strong consumer uptake and expanding distribution networks. This momentum has reinforced the need for increased local production capacity, both to meet demand and to navigate evolving regulatory conditions.
One key factor driving the shift toward European-based manufacturing is the regulatory environment. The European Union has introduced tariffs on Chinese electric vehicles and maintains strict requirements for local content in automobiles sold within the bloc. Establishing production within Europe—or partnering with manufacturers that already operate there—can help companies like Chery mitigate these barriers and remain competitive on pricing.
Chery has already taken initial steps in this direction through a joint venture with Spanish partner Ebro, utilizing a former Nissan assembly plant in Barcelona. The facility is expected to ramp up production significantly in the coming years, with a target of reaching 200,000 units annually by the end of the decade. However, executives acknowledge that this capacity alone will not be sufficient to support the company’s broader European ambitions.
France represents a key frontier in Chery’s expansion strategy, as it is one of the last major automotive markets in Europe where the company is introducing its vehicles. In addition to the Omoda and Jaecoo brands, Chery plans to launch models under its core brand later this year, with further product introductions—including a compact electric SUV—under consideration.
The company is also preparing to roll out another marque, Lepas, as part of its multi-brand strategy aimed at capturing diverse consumer segments. This layered approach allows Chery to tailor offerings to different price points and preferences, increasing its competitiveness in a fragmented and highly regulated market.
Globally, Chery has continued to post steady growth, with total vehicle sales reaching into the millions and overseas markets accounting for a substantial share of its business. The company has emerged as one of China’s leading automotive exporters, underscoring the increasing influence of Chinese manufacturers in international markets.
As Chery explores partnerships and expands its European footprint, the outcome of its strategy could have broader implications for the industry.
By leveraging existing manufacturing capacity and forming strategic alliances, the company is positioning itself to scale quickly while adapting to regulatory pressures—an approach that may become increasingly common as global automakers navigate shifting trade dynamics and intensifying competition.