JLR (Jaguar Land Rover) is in discussions with Chery about producing the Chinese automaker’s vehicles 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.
The UK government has a set a target for the local auto industry to produce 1.3 million cars per year by 2035. The Society of Motor Manufacturers and Traders estimates manufacturers in the UK made just 738,000 cars last year.
There’s no guarantee talks between Chery and JLR will result in a deal, with unnamed sources previously telling the business newspaper that the UK’s high energy and labour costs are potential sticking points.
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Chery has been busy expanding its manufacturing footprint outside of China. In 2024 it bought a factory in Barcelona that was closed down by Nissan three years earlier. Last week the Chinese automaker signed a deal to buy Nissan’s plant in South Africa.
In 2024 the EU imposed additional tariffs of up to 35 per cent on Chinese-made EVs, citing unfair subsidies being handed out by Beijing. The UK declined to follow suit, with the trade minister reasoning there were no complaints lodged by local manufacturers with the Trade Remedies Authority.
Through its Chery, Jaecoo and Omoda brands, the Chinese manufacturer had a wonderful 2025 in the UK. Jaecoo led the way, growing sales from 209 in 2024 to 28,232 last year. In the process it overtook the likes of Honda (23,017), Seat (23,015), and Citroen (20,732).
Omoda did well too, going from 3629 in 2024 to 19,855 in 2025, zooming past Suzuki (18,226), Jeep (10,616) and 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.
Chery and JLR have been partners in the Chinese market since 2012. Chinese production of Jaguar models ended in 2025, 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.