Chery is on the verge of establishing its first manufacturing presence in the UK, marking a significant moment for Chinese carmakers in Britain’s electric vehicle market.
The owner of the Omoda and Jaecoo brands, and China’s third largest carmaker, has announced a non-binding memorandum of understanding with Nissan to explore assembling its vehicles at Nissan’s Sunderland plant.
In a joint statement, the two carmakers said “Nissan would aim to begin manufacturing Chery International UK passenger vehicles on the plant’s production Line One in financial year 2027.”
The news arrives just one month after Nissan announced the closure of one of its two production lines at the Sunderland facility, making the deal a welcome development for employees there.
Chery has pursued a similar strategy in Spain, where it resurrected a former Nissan plant to launch production in partnership with Spanish automaker Ebro, bringing automotive manufacturing back to that region.
The potential Sunderland arrangement mirrors a move by rival BYD, which has said it is exploring the construction of a major European electric vehicle factory in Spain.
Chinese carmakers are increasingly eyeing the UK market as a significant growth opportunity, with early indications that British consumers are embracing their lower-cost alternatives to European and American vehicle brands.
DVLA car registration data released last month showed that BYD had outpaced demand for Land Rover vehicles in the UK for the second consecutive quarter, while MG owner SAIC had exceeded sales of German manufacturer Mercedes.
The UK’s comparatively low tariffs on Chinese cars, particularly when measured against those imposed by Europe and the United States, continue to make Britain an attractive destination for firms such as Chery.
If the Sunderland arrangement proceeds successfully, it could set a new precedent for Chinese automotive firms manufacturing on British soil and potentially ease concerns around job losses linked to China’s growing presence in the global car industry.