Chinese car firm Chery to open European base in Liverpool | Automotive industry
Chinese carmaker Chery is to open a research and development center in Liverpool, in a move that could pave the way for a deal for British manufacturer Jaguar Land Rover to produce its own cars.
State-owned Chery’s commercial vehicle arm will base its European operations, including research, engineering and commercial functions, on Merseyside.
Chery has already made a mark on the UK car market through its Omoda and Jaecoo brands and is launching its eponymous brand with an advertising campaign featuring former England footballer Peter Crouch.
The UK government is working on a plan for Jaguar Land Rover (JLR), the country’s largest automotive manufacturing employer, to produce Chery electric vehicles in the UK. The deal was expected to be part of talks during Keir Starmer’s visit to Beijing, but no deal has been announced.
In June, Chery UK director Victor Zhang said the carmaker was “actively considering” setting up a factory in the UK as part of its “localisation” strategy. Gong Yueqiong, general manager of Chery Commercial Vehicles, said in a statement: “We are not just bringing products to the UK, we are also building a British business.”
Trade Minister Peter Kyle discussed the potential deal with JLR’s new CEO PB Balaji, according to a person with knowledge of the talks. Balaji, a former executive at JLR’s Indian owner Tata Motors, is thought to have said JLR would be open to the move if it would benefit the business, but the person added that he did not believe a concrete agreement had been reached.
David Bailey, professor of business economics at the University of Birmingham, said any deal would likely involve using spare capacity at JLR’s factory in Halewood, also on Merseyside. He said the Chery headquarters announcement was “very good news” but also cautioned that he believed no manufacturing deals had been finalised.
“They talked about localization,” he said. “There is potentially scope to use JLR spare capacity.”
The Halewood factory produces smaller versions of the Land Rover, the Discovery Sport and Range Rover Evoque. The factory produced more than 200,000 vehicles in 2017, but only a small fraction of that in 2025. JLR’s production came to a halt in the final quarter of last year after a cyber attack halted all operations for weeks.
Liverpool city council leader Liam Robinson said: “Chery Commercial Vehicles choosing Liverpool for its commercial vehicle European base is a huge vote of confidence in our city’s talent, our workforce and our long-term vision for clean, inclusive growth.”
Ford also produces transmissions and electric drive units for pickup trucks adjacent to JLR; Stellantis, owner of brands such as Vauxhall, Fiat and Peugeot, produces minibuses in Ellesmere Port, across the River Mersey.
Gong said: “Our ‘Be the UK, in the UK, for the UK’ strategy reflects our belief that true globalization comes from deep localisation. We aim to be a valued contributor to the UK’s automotive industry and economy by recruiting local talent, collaborating with UK institutions and adapting to local needs.”
“Our strategy reflects our confidence in the UK’s talent, infrastructure and commitment to green technology.”
JLR declined to comment.
