China’s Chery plans to expand car production in Europe through local partnerships

Sunday 12 April 2026 - 11:45

Chinese automaker Chery is exploring plans to expand its vehicle production footprint in Europe by partnering with existing manufacturers and using available factory capacity, according to senior company executives.

The strategy reflects a broader trend among Chinese carmakers seeking to strengthen their presence in the European market without building entirely new production facilities. Instead, Chery is focusing on cooperation agreements that would allow it to assemble vehicles through established industrial networks.

Company representatives indicated that discussions are underway to identify potential production partners across Europe. Executives emphasized that leveraging existing factories would reduce costs and speed up market expansion compared to building new plants from scratch.

Chery’s leadership highlighted that the company is prioritizing strategic partnerships rather than large-scale direct investment in manufacturing infrastructure. Officials also noted that final agreements depend on local cooperation and regulatory conditions in each country.

While the company has not confirmed specific partners, it acknowledged that several European markets are being considered, with France among the potential locations.

The move comes as Chinese automotive brands, including competitors such as BYD, continue to expand rapidly in Europe, particularly in the electric and hybrid vehicle segments. This expansion has intensified competition in a market traditionally dominated by European, Japanese, and American manufacturers.

Industry data shows that Chery has experienced strong growth in Europe since launching sales in the region in 2023, significantly increasing its vehicle deliveries over the past year.

Analysts suggest that partnerships with established automakers could help Chinese brands accelerate their integration into the European market while avoiding the high costs and regulatory challenges of building new production plants.