Chery Accelerates European Localization, Plans to Expand Production via Partnerships Using Existing Plants

Chery is accelerating its localization of production in Europe, planning to expand capacity by partnering with local automakers and utilizing existing plants rather than building new factories from scratch. During the Omoda and JAECOO brand launch event in Paris, Lionel French Keogh, Chery’s Chief Commercial Officer for France, stated that the company is actively seeking additional production resources across Europe. Chairman Yin Tongyue emphasized that, compared to heavy capital investment in new plants, Chery prefers leveraging existing manufacturing infrastructure through local partnerships to advance localized production. “The key lies in finding the right local partners,” he said, adding that progress is expected within the next few months. While he did not disclose specific partners or the number of countries involved, he confirmed that France is among the potential locations under consideration. Since entering the European market in 2023, Chery has experienced rapid sales growth. Data shows its European sales surged from 17,000 units in 2023 to 120,000 units in 2024—an increase of nearly sixfold. Currently, Chery has already begun production at the former Nissan plant in Barcelona, Spain, through a partnership with Ebro, aiming for an annual capacity of 200,000 vehicles by 2029. However, company executives noted that this single facility alone will be insufficient to meet European market demand or comply with EU requirements regarding tariffs on Chinese-made battery electric vehicles (BEVs) and local content rules. France is one of the last major European markets where Chery’s Omoda and JAECOO brands are set to launch. Chery plans to introduce its main Chery-branded models in France in the fourth quarter of 2024 and may roll out a compact BEV SUV before year-end. Additionally, the company intends to launch an entirely new brand, Lepas, in Europe. In 2025, Chery’s global sales reached 2.8 million units, up approximately 7% year-over-year, with overseas markets accounting for more than 47% of total sales.