The potential entry of Chinese automaker Chery into Jaguar Land Rover’s UK factories could completely reshape the balance of power in the European market. If an agreement is reached, the established rules for European carmakers could be threatened. The winners would not only include Chinese brands themselves, but also British industry, which would benefit from new jobs and investments. However, for European manufacturers, this could mark the beginning of a new era of competition where traditional advantages no longer apply.
Explosive growth
In recent years, Chinese brands such as Ebro, Omoda, and Jaecoo have shown staggering sales growth in Europe. In 2025 alone, their combined sales approached one million vehicles, sounding an alarm for traditional market players. The secret to their success lies not only in aggressive pricing but also in significant improvements in product quality. Chinese cars are no longer seen as exotic; they meet European standards and are quickly earning buyers’ trust.
Although these brands’ dealership networks are not yet as developed as those of established competitors, the strategy pursued by Chery and others is simple and effective. They forge partnerships with major European distributors, open new showrooms and service centers in key cities. This approach allows them to rapidly expand their presence and close the gap with customers.
Localization of production
One of the main advantages for Chinese manufacturers is relocating production to Europe. This not only helps avoid high import tariffs, especially on electric vehicles, but also builds the image of a ‘local’ brand among European consumers. Setting up production in the UK will allow Chery to strengthen its position and reduce logistics costs.
According to available information, the British government is actively supporting the idea of Chery setting up production at Jaguar Land Rover plants. This move could be a lifeline for the British automotive industry, which in recent years has faced job cuts and declining production volumes. For China, it’s an opportunity to establish a foothold in one of the world’s most prestigious markets.
Old partnership, new horizons
Chery and Jaguar Land Rover share a long history of cooperation. Back in 2012, they created a joint venture, and two years later opened a plant in Changshu with a capacity of 130,000 vehicles per year. In 2017, an engine plant was launched, and in 2024, the launch of the Freelander brand was announced. This collaborative experience enables both sides to quickly find common ground and realize ambitious projects.
The United Kingdom has already become one of the key markets for Chery. In 2025, over 76,000 vehicles from the group were registered here, significantly surpassing Jaguar Land Rover’s figures for the same period. Moreover, Chery has overtaken well-known brands such as Citroën, Dacia, Fiat, Honda, Mazda, Mini, Renault, Seat, Tesla, and Volvo in sales. This isn’t just a success—it’s a challenge to the entire European automotive industry.
Spanish connection
Spain has not stayed on the sidelines of the Chinese expansion. In 2025, over 36,000 Chery vehicles were sold here, with Omoda leading the lineup. The group’s market share in Spain reached 3.1%, highlighting significant shifts in consumer preferences. Spanish dealers note that demand for Chinese cars is growing faster than for many European brands.
The launch of Chery production in the UK could strengthen the company’s position in Spain as well. Shorter delivery times, no tariffs, and European product status could make Chinese cars even more attractive for Spanish consumers. In the coming years, Chery’s market share is expected to grow further unless European manufacturers offer compelling alternatives.
Global implications
The deal between Chery and Jaguar Land Rover may set a precedent for other Chinese companies seeking to gain a foothold in Europe. If the British venture proves successful, similar agreements could emerge in other countries, intensifying competition even further and potentially prompting leading European automakers to revise their strategies.
For buyers, this means a wider selection and lower prices, but for European industry, it presents new challenges. Whether local manufacturers can adapt to these new conditions remains uncertain. One thing is clear: the era of traditional brand dominance is ending, and new players with global ambitions are entering the arena.
Chery is one of the largest car manufacturers in China, founded in 1997. The company specializes in passenger cars, SUVs, and electric vehicles, and is actively expanding its exports and local production abroad. In recent years, Chery has become a symbol of China’s automotive expansion in Europe, offering models that are competitive in both price and quality. Thanks to its flexible strategy and partnerships with leading global brands, the company is rapidly strengthening its position in key markets, including Spain and the United Kingdom.
