Liverpool has been chosen as the site for Chinese carmaker Chery’s European research and development headquarters, representing a major investment in the UK’s automotive infrastructure. State-owned Chery’s commercial vehicle division will base all its European research, engineering, and commercial operations at the Merseyside location.
Chery has established a foothold in the UK through its Omoda and Jaecoo brands and is now rolling out its eponymous brand with an advertising campaign fronted by former England footballer Peter Crouch. The multi-brand strategy demonstrates the company’s sophisticated approach to market penetration.
Government officials have been pursuing an agreement for Jaguar Land Rover to build Chery electric vehicles domestically. This potential deal was expected to feature in discussions during Prime Minister Keir Starmer’s state visit to Beijing, although no formal announcement has been made.
Victor Zhang, Chery UK director, stated in June that the company was “actively considering” building a UK manufacturing plant as part of its localization strategy. Industry analyst David Bailey from the University of Birmingham suggested any manufacturing partnership would probably utilize spare capacity at JLR’s Halewood facility on Merseyside, describing the headquarters announcement as positive news while cautioning that no manufacturing deal had been completed.
The Halewood plant currently produces the Land Rover Discovery Sport and Range Rover Evoque but operates well below its capacity, having seen production drop dramatically from over 200,000 vehicles in 2017 to a small fraction of that in recent years. JLR’s operations suffered additional disruption when a cyber-attack halted all production for several weeks in late 2024. Chery’s commitment to deep localization is embodied in Gong Yueqiong’s statement: “Our ‘In UK, For UK, Be UK’ strategy reflects our belief that true globalisation comes from deep localisation,” with the company planning to recruit local talent, collaborate with UK institutions, and adapt to local needs to become an integral part of Britain’s automotive industry, infrastructure, and green technology commitment.