A senior executive at the Chinese automaker Chery said that the company is considering the potential of producing automobiles in the UK.
Victor Zhang, the company’s UK director, told the BBC that it would be a “matter of time” before the business made a decision.
According to him, Chery is resolute in adopting a “localised” strategy for the European market and is already getting ready to start producing automobiles in Spain.
Mr. Zhang denied that the company had received unfair subsidies that benefited its exports.
One of the biggest automobile firms in China is Chery, which was founded in 1997. Currently the largest automobile exporter in the nation, it has great plans to grow much more.
It has established Omoda and Jaecoo, two new brands that are only targeted at the foreign market, to aid in the advancement of that objective.
Omoda was formally introduced in the UK last month. It has started offering the Omoda 5, a popular SUV, in both gasoline- and electric-powered configurations.
By the end of the year, it wants to have more than 100 dealerships in this network, which currently consists of 60.
It is by no means the only Chinese producer, though, who believes there is potential for profit in the British market.
Numerous showrooms for BYD, which has been competing with Tesla to be the largest producer of electric vehicles worldwide, have also been established here. In the UK, SAIC is already well-known and sells vehicles under the venerable MG brand.
A matter of time
Currently, Chery’s manufacturing headquarters in Wuhu, Eastern China, is where cars intended for sale in Europe are constructed. However, a shift in that condition is anticipated.
The Omoda and Jaecoo models will be manufactured at a former Nissan facility in Barcelona thanks to an agreement the company already has with the Spanish company EV Motors. However, it also aims to set up additional bases.
The business stated earlier this year that the UK might be a possibility for an assembly plant. That is still a viable option.
“We are already committed to this, Barcelona,” Mr. Zhang said.
“For the UK, we are also evaluating. To be honest, we are open for all options and opportunities.”
Thus, I believe it will happen eventually. We shall proceed if everything is prepared.
The Department for Business spokesperson called the UK auto industry “thriving”.
“While we cannot speculate on commercial investment decisions, we welcome Chery International’s Omoda launch in the UK and would positively view any new investment in the UK,” they stated.
On Chery’s list, however, is not just the UK. Additionally, it has been in discussions with the Italian government on the establishment of production in Italy.
Mr. Zhang denied that the choice would be made based on whatever nation could provide the greatest incentives.
“It’s a combination of factors for such a big investment project,” he stated.
It goes beyond simply government incentives and policies. In addition, you should consider the market itself, education—since skilled labour is needed in fields like engineering and manufacturing—the supply chain, and logistics.
“So there will be many factors involved in our final decision”.
Since the European Union put substantial tariffs, or levies, on Chinese imports of electric vehicles in July, there has been a growing push to establish manufacturing bases in Europe.
Brussels claimed that this action was taken because Chinese automakers were profiting from “unfair subsidies” that made it possible for their vehicles to be sold for extremely low prices overseas, undercutting domestic producers. The EU was accused of protectionism by China.
Chery would be able to avoid paying those taxes by producing its goods in Europe. However, Mr. Zhang emphasized that his business has always been dedicated to producing goods locally.
“We are not trying to use any unfair methods”, he emphasized.
“We want to be adaptable to the local market, and provide the best products, using the best dealerships. To be localized is the only strategy for the long term,” he said.
The UK has not yet stated if it will apply tariffs of its own in a manner akin to this.
Over 30 million cars are sold annually on China’s huge domestic auto market.
With almost 5 million cars exported last year, it already has a sizable market share worldwide. That was a 64% rise over the previous year.
Roughly 5 percent of automobiles sold in the UK are still from Chinese automakers.
However, established automakers are worried that the number would rise quickly, with Chinese brands’ prices likely to have a major influence.
