Chinese giant Chery could build cars in UK

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Chery, one of China’s largest car companies, is considering building cars in the UK as it seeks to expand further into the European market. The announcement came from Chery’s UK head, Victor Zhang, who told the BBC that it was only a matter of time before the company made a final decision. Zhang revealed that Chery was determined to take a “localised” approach to European markets and was already preparing to build cars in Spain.

Chery, which was established in 1997, is China’s largest exporter of vehicles and has ambitious plans for growth. The company has set up two new brands aimed entirely at international markets, Omoda and Jaecoo. Last month, Omoda officially launched in the UK and began selling the Omoda 5, an electric and petrol-powered SUV, through a network of 60 dealerships. The company aims to have over 100 dealerships in the UK by the end of 2022.

Chery is not the only Chinese carmaker to see potential in the UK market. Both BYD and SAIC have opened dozens of dealerships in the country. However, the UK is not the only location under consideration by Chery. The company is also evaluating opportunities in Italy and is in discussions with the Italian government about setting up manufacturing facilities there.

While the UK’s auto sector is recognised as “thriving”, Chery is not expected to make a final decision based solely on government incentives. According to Zhang, such decisions are based on a range of factors including education, logistics and the local market itself. For Chery, being localised is the only viable strategy for long-term success.

Chery has already agreed to build vehicles in Spain in partnership with the Spanish firm EV Motors and may consider the UK as another candidate for an assembly plant. Zhang believes that whatever decision Chery makes, it is “just a matter of time” before the company takes further steps toward localising its European presence

Read the full article from The BBC here: Read More

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