Prime Highlights :
- Chairman Yin Tongyue said Chery prefers leveraging existing factory capacity over building new plants and expects to announce partnership news in the coming months.
- Despite its Barcelona joint venture targeting 200,000 units annually by 2029, executives said that output will still fall short of meeting European demand and regulatory requirements.
Key Facts :
- Chery Automobile is China’s largest car exporter, selling 2.8 million vehicles globally last year, with overseas markets making up over 47% of its total sales.
- The EU has imposed tariffs on Chinese electric vehicles, pushing automakers like Chery to seek local production partnerships to stay competitive in Europe.
Background :
Chinese automaker Chery is in talks to expand car production in Europe by partnering with local manufacturers and using their existing factories. Top executives revealed the plans at a launch event for the company’s Omoda and Jaecoo brands in France.
Chery Chairman Yin Tongyue told journalists the company prefers to use available production capacity rather than invest heavily in building a new plant. He said the process requires time and the right local partnerships, adding that the company hopes to share news on the matter in the coming months. He did not name which automakers Chery is in discussions with, but confirmed France is among the potential locations.
Chery’s chief commercial officer for France, Lionel French Keogh, said the company is actively looking for additional production capacity across Europe. Executives noted that the existing Barcelona facility, a joint venture with Ebro in a former Nissan plant, will not be enough to meet growing demand or satisfy EU tariffs on Chinese electric vehicles and local content requirements.
The Barcelona plant aims to reach 200,000 units annually by 2029. Chery’s European sales surged nearly sixfold last year to over 120,000 vehicles. Globally, its sales grew almost 7% to 2.8 million vehicles, with overseas markets accounting for over 47% of total sales.
The Barcelona plant aims to reach 200,000 units annually by 2029. Chery’s European sales surged nearly sixfold last year to over 120,000 vehicles. Globally, its sales grew almost 7% to 2.8 million vehicles, with overseas markets accounting for over 47% of total sales.