Chery expands vehicle production in Europe

Chinese automaker Chery is considering expanding its production capacity in Europe and is focusing on partnerships with existing manufacturers, reports Reuters. The company's strategy involves utilizing existing European production facilities rather than building new plants, an approach intended to save time and investment costs. Talks with potential partners are already underway, though no specific names or locations have been disclosed, with France cited as a possible option. This move is a response to surging demand in Europe, where sales have increased nearly sixfold since its 2023 market entry, reaching around 120,000 vehicles in 2025. While Chery already operates a joint production facility in a former Nissan plant in Barcelona, aiming for 200,000 vehicles annually by 2029, these capacities are likely insufficient to meet growing demand and EU regulatory requirements, such as local content rules and tariffs on imported Chinese EVs. Concurrently, Chery is expanding its brand presence in Europe with its Omoda and Jaecoo models entering more markets, with additional models and potentially new brands to follow. This planned expansion emphasizes greater localization of production in Europe, a step meant to boost competitiveness and better address regulatory hurdles