Chery Commits to Liverpool as European Base Amid JLR Partnership Talks

Chinese automotive manufacturer Chery is setting up its European research and development headquarters in Liverpool, positioning Merseyside as the central hub for its European commercial vehicle operations. The state-owned company will consolidate research, engineering, and commercial activities at the comprehensive facility.
Chery has cultivated a growing presence in the UK market through its Omoda and Jaecoo brands, and is rolling out its primary Chery brand with an advertising campaign featuring Peter Crouch, the well-known former England footballer. The phased brand introduction reflects the company’s methodical approach to building market recognition.
Discussions between the UK government and Jaguar Land Rover about a potential agreement for JLR to build Chery electric vehicles have been ongoing. This arrangement was expected to feature in talks during Prime Minister Keir Starmer’s Beijing visit, though no official announcement has materialized.
Business Secretary Peter Kyle has engaged with JLR’s newly appointed chief executive, PB Balaji, about the potential manufacturing partnership. Sources close to the discussions indicate that Balaji, formerly an executive at Tata Motors, JLR’s Indian parent company, has shown conditional interest in the arrangement if it provides clear business advantages for JLR, though no firm agreement exists.
The Halewood factory stands as the probable location for any manufacturing partnership, given its substantial excess capacity following production declines from over 200,000 vehicles in 2017 to a fraction of that volume in recent years. Operations at the plant, which produces the Discovery Sport and Range Rover Evoque, were completely halted for several weeks in late 2024 due to a cyber-attack. Merseyside already hosts substantial automotive manufacturing infrastructure, including facilities operated by Stellantis and components production by Ford. Gong Yueqiong emphasized Chery’s deep commitment to the UK market: “Our ‘In UK, For UK, Be UK’ strategy reflects our belief that true globalisation comes from deep localisation. By recruiting local talent, collaborating with UK institutions, and adapting to local needs, we aim to become a valued contributor to the UK’s automotive industry and economy,” demonstrating confidence in the UK’s talent, infrastructure capabilities, and commitment to green technology.