Chinese automaker Chery is seeking to increase its vehicle production capacity in Europe by forming partnerships with established car manufacturers, enabling it to utilize existing factories rather than building new plants. This strategy was outlined by senior executives during an event in Paris.
Lionel French Keogh, Chery’s chief commercial officer for France, emphasized the company’s interest in securing additional production facilities across Europe. Meanwhile, Chery Chairman Yin Tongyue highlighted the preference for leveraging current manufacturing capacities, noting that such collaborations require time, dedication, and the establishment of strong local partnerships.
Yin refrained from specifying which automakers are involved in discussions or the exact countries under consideration but confirmed that France is among the potential locations. This approach aligns with Chery’s rapid expansion in the European market since launching sales there in 2023.
Chery’s European sales surged nearly sixfold last year, reaching 120,147 vehicles compared to 17,035 in 2022, data from auto consultancy Dataforce. The company, which is China’s largest car exporter, has already invested in a joint venture with Ebro to operate a former Nissan assembly plant in Barcelona, aiming to produce 200,000 units annually by 2029.
However, executives acknowledge that this capacity will not suffice to meet growing demand or to comply with European Union regulations, including tariffs on Chinese electric vehicles and local content requirements. France remains one of the last major European markets where Chery is introducing its Jaecoo and Omoda models. The company plans to launch a model under its Chery brand in the fourth quarter and may introduce a small electric SUV in France by year-end.
In addition, Chery recently announced plans to bring its Lepas brand to Europe. Globally, the automaker’s sales increased nearly 7% last year to 2.8 million vehicles, with overseas markets outside China accounting for over 47% of total sales.
