Chery, a major Chinese automotive manufacturer, has confirmed the opening of a European headquarters in Liverpool, signaling a significant expansion into the UK market. This move comes as Jaguar Land Rover (JLR) explores a potential partnership with Chery to produce vehicles at its UK facilities, leveraging spare manufacturing capacity. The developments coincide with increased diplomatic engagement between the UK and China, with Prime Minister Sir Keir Starmer’s recent visit to Beijing aimed at strengthening trade relations.
Strategic Expansion and UK Investment
Liverpool’s Labour Council Leader, Cllr Liam Robinson, has hailed Chery’s decision as a “huge opportunity” expected to bring high-skilled jobs to the city. The exact timeline for the new headquarters remains unclear, but the announcement reinforces industry speculation about a broader collaboration between Chery and JLR.
The potential deal would see Chery utilize JLR’s existing production lines, a move driven by pragmatic efficiency. As Professor of Economics David Bailey from Birmingham Business School explains, “Such moves reflect a pragmatic attempt to manage risk, improve asset use, and sustain industrial capability during a period of structural change.” Chery’s growing presence in the UK – with over 5,500 vehicles sold in 2025, surpassing established brands like Alfa Romeo and DS – further underscores the viability of local production.
JLR’s Revitalization in China
This collaboration is happening as JLR doubles down on the Chinese market, with a key project being the revival of the Land Rover Freelander as an all-electric vehicle (EV) exclusive to Chinese buyers. The revamped Freelander will feature cutting-edge digital technology, including advanced autopilot systems and immersive in-car entertainment, catering to the demands of Chinese consumers.
Historically, China was a major profit center for JLR, but recent struggles—including a 2025 cyberattack that halted production for weeks—have underscored the need for strategic partnerships. JLR has faced quality perception challenges and increased competition from domestic Chinese brands. The joint venture with Chery in Changshu, powered in part by a 20-megawatt solar farm, is central to JLR’s strategy for regaining market share in China.
The Bigger Picture
The potential for Chery vehicles to be manufactured at JLR facilities in the UK raises questions about the future of British automotive production. While JLR declined to comment, the move represents a shift towards leveraging global partnerships to optimize manufacturing and revenue streams. The dynamics at play underscore the increasing interconnectedness of the automotive industry and the need for adaptation in a rapidly evolving market.
The success of this partnership will depend on navigating economic headwinds in China, maintaining quality standards, and effectively competing with emerging domestic brands. However, if executed strategically, the collaboration could strengthen JLR’s position in a crucial market while bolstering UK industrial capabilities.
