- Chery, the Chinese OEM behind brands such as Omoda and Jaecoo, has expressed interest in opening a car plant in the UK, as it decides on where to place its planned European manufacturing bases.
- Whilst Chery isn’t facing any extra taxes on EVs and cars imported to the UK, opening European plants will help it avoid the 21% tariff imposed on Chinese-built EVs from the brand, by the European Union
- One of Chery’s sub brands, Omoda, launched in the UK just last month, with Chery’s Jaecoo brand also heading to the country later this year.
Chery evaluates a UK production site
In an interview with BBC News, a senior executive at the OEM expressed interest at establishing a manufacturing site in the country, explaining that a final decision would be made in the near future. If such a plant was made, Chery would be the first Chinese manufacturer to construct its vehicles within the UK, after BYD ruled out a UK EV plant last year, citing Brexit as a reason against opening a factory. However, this consideration from Chery shows a changing opinion, with the UK so far not imposing any extra tariffs on Chinese-built EVs, in stark contrast to the tariffs imposed by its close neighbours in the EU.
Chery’s European-bound vehicles are all currently made within China, but the manufacturer is already committed to opening an EV plant within the European Union, in Spain, helping it to avoid related tariffs. However, including a UK-based factory could also export EVs in particular to the EU, thanks to the relatively lower tariffs placed on EV trade between the EU and UK.
The executive noted that regulations would not be the only factor influencing its final decision on where to build a new plant, however, telling the BBC: “It’s not just government policy or incentives. You also need to look at the market itself; education, because you need good talented people such as engineers and factory workers; there’s also supply chain, logistics… So there will be many factors involved in our final decision.”
