A Chery Zongheng G700 on display at the Beijing Auto Show in April 2026. Credit: CnEVPost
- Nissan announced its Sunderland plant in the UK will contract manufacture passenger vehicles for Chery in fiscal 2027.
- Chery is accelerating localized production in Europe to avoid potential import tariffs.
Chery (HKEX: 9973) will produce cars at Nissan’s UK plant as the Chinese auto giant continues to push forward its efforts to expand its international footprint.
The two companies have signed a non-binding memorandum of understanding for Nissan to contract manufacture passenger vehicles for Chery at its Sunderland facility in the UK.
Nissan announced the move in a statement on Wednesday. This marks the first time a Chinese automotive brand will engage in large-scale localized production in Britain.
Under their plan, production of Chery models is targeted to officially begin in fiscal 2027. The vehicles will be built on the Sunderland plant’s currently idled Line One.
Nissan said in the statement that the Sunderland facility will remain fully owned by it. All production teams and employees at the plant will also continue to be employed by the Japanese automaker.
The Sunderland plant is the largest car manufacturing facility in the UK, currently employing about 6,000 full-time workers. The factory has been a cornerstone of Nissan’s European operations since the 1980s.
However, due to turmoil at Nissan’s parent company and the failure of European car sales to recover to pre-pandemic levels, the plant has faced low capacity utilization in recent years, with its utilization rate hovering around 50% at one point.
In 2025, the Sunderland plant produced only 273,000 cars, far below its maximum capacity of about 600,000 vehicles, according to a report by the Guardian.
In a bid to secure better plant utilization, Nissan announced a consolidation plan last month. The company concentrated all manufacturing operations onto Line Two, thereby freeing up Line One for third-party use.
Massimiliano Messina, chairperson of Nissan AMIEO (Africa, Middle East, India, Europe, and Oceania), said this is an important step forward for the company’s operations.
For Chery, the partnership is part of a broader strategy to establish manufacturing operations in Europe. Chinese automakers are attempting to avoid potential import duties and improve supply chains through localized production.
Chery has seen rapid growth in the UK market recently. The company operates the Jaecoo, Omoda, and Lepas brands, as well as its eponymous Chery brand.
Over the past two years, the combined market share of Chery’s various brands in the UK has approached 7%. Among them, the China-built Jaecoo 7 plug-in hybrid electric vehicle became the top-selling model in the UK in March.
This is not the first time Chery has taken over Nissan’s global factory resources. The Chinese car company is actively expanding its overseas production footprint.
Chery has set up a joint venture with Spanish automaker Ebro, with plans to produce cars in Barcelona.
Furthermore, Chery South Africa will acquire the assets of Nissan’s Rosslyn plant in South Africa by the middle of this year. This includes land, buildings, and nearby stamping production facilities.
While advancing its global expansion, Chery’s technological prowess has also been recognized by international peers. India’s Tata Motors is planning to license Chery’s premium EV platform, according to a report by Reuters yesterday.
Tata will rely on the Freelander platform, a joint venture between Chery and Jaguar Land Rover, to build new cars. The joint venture recently announced an additional investment of 3 billion yuan (about $443.6 million) to upgrade its production line in Changshu, Jiangsu province.
Chery is currently China’s largest auto exporter. In May, Chery sold 231,944 vehicles, with overseas sales hitting a record 177,666 units, according to data compiled by CnEVPost.
The revived Freelander brand from Chery and Jaguar Land Rover released official images of its first production model, officially named the Freelander 8.
($1 = 6.7626 yuan)
