Chinese electric car company Chery could use British Jaguar Land Rover factories to build their cars, according to reports. It is understood that Chery is in talks to use a JLR site to build its own cars, in a boost for the Chinese brand.
The JLR site under review is understood to be operating below capacity in its current form. Sources have claimed that both Chery and JLR could hold exploratory talks during Prime Minister Keir Starmer’s visit to China. Business secretary Peter Kyle said a partnership could be struck.
He told the Financial Times: “If there is a manufacturing facility where there is sort of undercapacity, then… there is a logic to forming partnerships and that could well form one of them.”
Chery is already closely linked to JLR, with the two marques operating as part of a 50:50 joint venture. The deal, established back in 2012, includes a manufacturing plant and a research & development base.
A new UK base could help the UK car industry and Labour meet its net-zero targets, with plans for a petrol and diesel car ban in 2030 still expected to go ahead. It would not be the first Chinese manufacturer to make steps into manufacturing in Europe, with Chery already owning a plant in Barcelona.
Meanwhile, Chinese car manufacturer Leapmotor has also secured a partnership with Stellantis and will start putting together vehicles at a Spanish plant this year.
The partnership could also help Jaguar in its attempts to dip into the lucrative EV market with plans for a new Range Rover Electric, planned to launch in 2026.
Chery has already taken major steps to enter the UK market in the last year, with their Tiggo 7 and Tiggo 8 models already on sale. Despite being a newcomer to the UK market, data shows that Chery secured 5,517 sales over the past 12 months.
Chery is also behind sister brands Omoda and Jaecoo, which enjoyed impressive sales in their debut year. Jaecoo quickly became one of the top-selling electric vehicles, with over 20,000 models sold on forecourts last year.
Express.co.uk has contacted Jaguar Land Rover for comment.
