JLR (Jaguar Land Rover) is in talks with Chery about making the Chinese automaker’s cars at one of its plants in the UK.
According to the Financial Times, the two firms are in early discussions, which are being facilitated by the British government. Members of the government, including Prime Minister Keir Starmer, are currently in China for a series of wide-ranging trade negotiations.
A target for the UK government is that of the local auto industry to produce 1. By 2035, there are 3 million vehicles a year. The Society of Motor Manufacturers and Traders estimates manufacturers in the UK made just 738,000 cars last year, according to figures from the Society.
Chery has no guarantee talks with JLR to make a deal, but sources who have not been named previously told the business newspaper that UK’s high energy and labour costs are ‘the sticking points’.
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Chery has been busy expanding its manufacturing footprint outside China for the . In 2024 it acquired a factory in Barcelona that was closed by Nissan three years earlier. The Chinese automaker agreed to buy Nissan’s plant in South Africa last week.
In 2024, the EU imposed further tariffs of up to 35 per cent on Chinese-made EVs in response to unfair subsidies being provided by Beijing. However, the UK refused to follow suit; a trade minister said there was no complaints from local manufacturers with the Trade Remedies Authority that they had lodged any complaints.
The Chinese manufacturer had a wonderful 2025 in the UK through its Chery, Jaecoo and Omoda brands. In 2024, sales of Jaecoo jumped from 20,9 to 28,232 last year and led by JaEco. It overtook the likes of Honda (23,017), Seat ( 23,05) and Citroen (20,732) in the process.
Similarly, Omoda was well-prepared 3629 in 2024 to 19,855 in 20,25, zooming past Suzuki (18.226) and Jeep (10,616) as well as Fiat (8764).
By contrast, JLR, which is owned by India’s Tata Motors, had a rough year with its UK manufacturing sites shut down for a month-and-a-half after a cyberattack in October, and CEO Adrian Mardell retiring and being replaced by PB Balaji, chief financial officer of Tata Motors.
From 2012. Chery and JLR are partners in the Chinese market for a long time. Japanese sales of Jaguars were discontinued in 2025 after Chinese production, with the Range Rover Evoque and Land Rover Discovery Sport due to wrap up this year.
They will be replaced by models being developed for the spin-off Freelander marque, with all initial models based on a Geely EV platform.
Explore the Land Rover showroom | Jaecoo showroom
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