State-owned Chinese automotive manufacturer Chery is opening its European research and development headquarters in Liverpool, positioning Merseyside as the command center for its European commercial vehicle operations. The facility will bring together research, engineering, and commercial functions in a single strategic location.
Chery has already gained recognition in the UK market through its Omoda and Jaecoo brands, and is now introducing its flagship Chery brand with an advertising campaign starring former England striker Peter Crouch. The company’s multi-brand strategy reflects its serious ambitions in the competitive British automotive landscape.
Parallel to this expansion, the UK government has been exploring an agreement for Jaguar Land Rover to build Chery electric vehicles domestically. This potential partnership was expected to feature in discussions during Prime Minister Keir Starmer’s state visit to Beijing, although no agreement has been formally announced.
Chery UK director Victor Zhang indicated in June that the company was “actively considering” establishing a manufacturing plant in Britain as part of its localization strategy. Business Secretary Peter Kyle has engaged in discussions with JLR’s new chief executive, PB Balaji, about the potential manufacturing arrangement. Sources familiar with the talks suggest Balaji has expressed conditional support for the idea, provided it delivers tangible benefits to JLR’s business.
The most likely location for any manufacturing partnership would be JLR’s Halewood factory, which has significant excess capacity following production declines and a cyber-attack that shut down operations in late 2024. Merseyside already hosts substantial automotive manufacturing infrastructure, including facilities operated by Stellantis and components production by Ford. Gong Yueqiong emphasized Chery’s commitment to becoming “a British business” rather than simply an importer, with the company’s “‘In UK, For UK, Be UK’ strategy” focusing on recruiting local talent, collaborating with British institutions, and contributing meaningfully to the UK’s automotive industry and broader economy.