According to Victor Zhang, Chery Mulls Senior Vice President for Yu Jin. It is mulling setting up a plant for car assembly in the UK. The manufacturer has already commenced construction of a plant in Spain. And is looking to enhance local production in Europe. Zhang noted that a decision about construction in the UK is only a matter of time.
Shery’s growth strategy Chery MullsÂ
Founded in 1997, Chery is a sage in car manufacturing in China. And a leader in the production and the export of vehicles. The company, through its recent brands, Omoda and Jaecoo, is increasing its footprint in international markets. Last month, Omoda entered the UK, introducing the Omoda 5 SUV in petrol and electric versions. Chery has set up 60 dealerships within the UK. And is targeting to increase this number by more than 100 by the end of the year.
Competition and European Presence
Such interest in the UK market has also been shared by some of the Chinese vehicle manufacturers like BYD. And SAIC (owners of MG). Chery is undertaking its manufacturing activity in Spain after signing a contract with EV Motors to build its cars at the old Nissan factory in Spain. Other countries like Italy and the UK have also been eyed for new sites .
Sometimes, it takes several ways to clarify a point, and Mr. Zhang goes on to explain why this country may invest in Europe other than the lure of incentives. Often, factors such as current market conditions, availability of the relevant talent, supply chains, and logistics come into play. Although the European Union imposed customs duties on importing Chinese electric vehicles due to offshore subsidy practices, Chery explains that its decision to manufacture vehicles locally is not related to tariffs. Instead, it is a long-term business strategy aimed at meeting the needs of customers in those countries.
Chery gy proud from its’ last throes expansion plans, which believe should sector them from EU tariffs – by producing the very vehicles they wish to avoid tariffs on within that region, while still focused on the concept on the European market, eu production. The company has been spreading its market presence, and although it is estimated that China’s market share is only 5% of the car market in the United Kingdom, this status is likely to reverse because of the low prices offered by Chinese producers for cars.
There are several issues that Chery has to still discuss regarding your point whether you want to produce cars in the United Kingdom or not, however. It’s become apparent that the trends imply the growing importance of the Chinese car manufacturing companies in the international marketplace. Particularly in the European market.
