10:51 31-01-2026

UK and Chery in talks to use Jaguar Land Rover factories

The UK is making a fresh attempt to revive its domestic automotive industry. Chery is considering using Jaguar Land Rover factories for local production, and upcoming talks in Beijing could shape the industry's future for decades to come.

Why the UK is seeking an alliance with Chery

After a sharp decline in production volumes from the record highs of the mid-2010s, the country's auto sector needs a reboot. According to data from the publication 32CARS, the government has backed the idea of handing over idle JLR capacity to produce Chery vehicles. The goal is ambitious: to grow to 1.3 million cars produced annually by 2035, while current output remains below 750,000. Prime Minister Keir Starmer will become the first British leader in eight years to visit China to personally discuss the terms of a potential partnership.

Why Chery is interested in British factories

Chery is actively strengthening its presence in Europe, and the UK market has proven one of the most favorable due to reduced tariffs. In 2025, the Omoda and Jaecoo brands became the fastest-growing among Chinese brands in the country. However, the company has always had doubts about the profitability of local production due to high energy costs and labor expenses. Despite this, Chery has already acquired Nissan factories in Barcelona and South Africa, confirming its readiness for global expansion.

What JLR and the British government stand to gain

Jaguar Land Rover faces underutilization of production capacity, especially amid ongoing structural transformations and the shift to electric vehicles. A potential arrival of Chery could help offset idle production lines and restore economic stability to parts of the business. For the government, this collaboration offers a chance to revive the industry after Brexit, the pandemic, and geopolitical upheavals. It's also worth noting that the brands already have experience cooperating, including a joint venture in China and a licensing agreement for the Freelander name for Chery's electric vehicles.