Chery circles Jaguar Land Rover plants as UK seeks manufacturing boost, report says

Chery is reportedly exploring the use of Jaguar Land Rover’s existing factories in the United Kingdom to produce vehicles, with discussions still at an early stage and no finalized terms. The potential arrangement would involve manufacturing at facilities currently operated by Jaguar Land Rover, according to reports from the Financial Times and Chinese automotive sources.

The UK government has publicly expressed interest in attracting Chery to manufacture vehicles domestically and has identified Jaguar Land Rover’s plants as a potential option. Officials indicated that cooperation could be considered if certain factories are underutilized, framing such collaboration as a potential pathway rather than a confirmed plan. Chinese sources confirm that these talks are ongoing but emphasize that no formal agreement has been reached.

From the UK government’s perspective, cooperation with an overseas automaker could help achieve its target of producing 1.3 million vehicles annually by 2035. The Society of Motor Manufacturers and Traders estimated that UK vehicle production in 2025 reached 738,000 units, indicating a gap between current output and the long-term target.

Chery’s Omoda and Jaecoo brands have been among the fastest-growing Chinese brands in the UK market. Chinese reports note that multiple Chinese EV makers are accelerating their entry into the UK, while EU tariffs on China-made battery-electric vehicles have prompted brands including BYD to introduce more competitively priced models.

Chery insiders have previously highlighted high energy and labor costs in the UK as key challenges for local manufacturing and capacity expansion. These factors remain relevant in assessing the feasibility of establishing or expanding production in the country.

Chery already owns a manufacturing facility in Barcelona, acquired from Nissan, and recently reached an agreement to acquire Nissan’s factory in South Africa. Nissan has also not ruled out allowing its Chinese partner, Dongfeng, to use its Sunderland plant to fill unused capacity. Separately, Leapmotor is expected to begin production of new models at a Stellantis facility in Spain this year.

Jaguar Land Rover, controlled by Tata Motors of India, has an existing joint venture with Chery. In 2024, Jaguar Land Rover licensed the Freelander brand to Chery for the development of battery electric models based on Chery platforms. The automaker suffered a cyberattack in late 2025, resulting in losses of at least 196 million pounds, equivalent to about 1.85 billion yuan (267 million USD). Academic commentary cited in Chinese sources suggested that Jaguar Land Rover factories could still accommodate one or two additional models as new electric vehicles approach market launch.

Chinese and UK sources both note that discussions remain at an early stage and that no official timetable or contract has been announced for Chery vehicle production at Jaguar Land Rover factories.