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The Chinese automaker targets local partnerships and idle capacity to accelerate growth and navigate EU trade barriers
Chinese automotive group Chery Automobile is reshaping its European expansion strategy by prioritizing industrial alliances over large-scale investments in new factories. As competition intensifies and regulatory pressures mount, the company is seeking to embed itself more deeply within the continent’s manufacturing ecosystem—faster, more efficiently, and with lower financial risk.
Rather than pursuing the traditional route of building plants from the ground up, Chery is actively exploring agreements with established European carmakers to make use of existing production facilities. This approach allows the company to significantly reduce capital expenditure while cutting the time required to bring vehicles to market. It also offers a practical way to respond to the European Union’s increasingly protective stance toward imports, particularly electric vehicles produced in China.
Senior executives have confirmed that expanding production capacity within Europe is now a top priority. Speaking on the sidelines of an industry event, Chery’s leadership highlighted the importance of identifying suitable local partners capable of supporting its ambitious growth plans. According to Yin Tongyue, the company’s chairman, establishing the “right collaborations” is essential to ensuring long-term success in the region. His remarks suggest that negotiations are already progressing and that concrete developments could emerge in the near future.
Among the countries under consideration, France appears to be a particularly attractive option. The French automotive landscape is dominated by major players such as Stellantis and Renault, both of which operate extensive manufacturing networks. Some of these facilities are currently running below full capacity, creating an opportunity for mutually beneficial cooperation. For Chery, such partnerships would provide immediate access to established infrastructure; for European manufacturers, they could help improve plant utilization and generate additional revenue streams.
This strategy builds on Chery’s initial steps into European manufacturing. The company has already launched a joint venture with Ebro at a former Nissan site in Barcelona. That facility is expected to reach an annual output of up to 200,000 vehicles by the end of the decade. However, company officials acknowledge that this level of production will not be sufficient to meet the rapidly rising demand for Chery-branded vehicles across Europe.
Indeed, recent performance figures highlight the scale of that demand. In 2025, Chery sold more than 120,000 units in European markets, marking a dramatic increase compared to the previous year. Globally, the company delivered 2.8 million vehicles, with overseas markets now accounting for nearly half of total sales. These results underscore Chery’s transformation into a major international player and the growing importance of Europe within its broader expansion strategy.
Alongside its industrial ambitions, Chery is also investing heavily in brand development and market penetration. The rollout of its Omoda and Jaecoo marques in France represents a key step in establishing a stronger commercial presence. These brands are designed to appeal to European consumers with a mix of modern design, advanced technology, and competitive pricing. Additional models, including compact electric vehicles tailored to local preferences, are expected to be introduced in the coming months.
Chery’s approach reflects a wider trend among Chinese automakers, many of which are seeking to establish a more permanent industrial base in Europe. Companies such as Geely, BYD, and Leapmotor are all pursuing similar strategies, combining direct investment with partnerships and joint ventures. Together, these firms aim to surpass one million vehicles produced annually within Europe by 2028, supported by a growing network of factories across the European Union and neighbouring regions such as Turkey.
Within this competitive landscape, Chery’s emphasis on collaboration offers a distinct advantage. By integrating into existing industrial structures, the company can scale operations more rapidly while minimizing financial exposure. At the same time, producing vehicles locally helps mitigate the impact of EU tariffs on Chinese imports, which have become a significant barrier to entry in recent years.
Ultimately, Chery’s evolving strategy illustrates how global carmakers are adapting to a more complex and fragmented market environment. Success in Europe now depends not only on product quality and pricing, but also on the ability to navigate regulatory frameworks, build local relationships, and respond flexibly to shifting economic conditions.
Alessandro Fiorentino