CheryAccording to a top executive, Chinese automaker Chery is considering the possibility of producing vehicles in the UK.
Its UK director Victor Zhang told the BBC that there was” a matter of time” before the business reached a final selection.
He said Chery, which is already preparing to build cars in Spain, was determined to take a “localised” solution to the German business.
Mr Zhang denied the company’s export had benefitted from cruel incentives.
Chery, which was set up in 1997, is one of China’s largest automobile organizations. It is already the region’s biggest producer of cars, but has ambitious plans to expand more.
It has established two new models, Omoda and Jaecoo, to assist with that plan’s development.
Next month, Omoda was formally launched in the UK. It has begun selling a contemporary SUV, the Omoda 5, in both energy and petrol-powered types.
It has built a community of 60 retailers, and hopes to have more than 100 here by the end of the year.
However, it is not the only Chinese manufacturer to consider the American market as possible profitable.
In addition to opening lots of retailers in this city, BYD, which has been fighting with Tesla to become the biggest energy car manufacturer in the world, has opened lots of them.
SAIC is already well-known in the UK, and it sells vehicles under the recognizable English MG brand.
It’s only a matter of day.
At Chery’s production facility in Wuhu, in Eastern China, cars for sale in Europe are now being produced there. However, it is anticipated that things will change.
The business now has a contract with EV Motors, which will enable the production of the Omoda and Jaecoo models at a previous Nissan manufacturer in Barcelona. However, it wants to establish additional foundations as well.
The firm reported earlier this year that the UK might also be a potential location for an assembly plant. That choice is still open.
” Barcelona, this is something we are now commited to”, explained Mr Zhang
” For the UK, we are even evaluating. To be honest, we are available for all options and opportunities.
” So I think it’s just a matter of day. If everything is available, we will do it”.
The UK is not the only state on Chery’s record. It has also been talking to the Roman government about, for instance, starting production there.
Mr. Zhang argued that the choice may be made based on which nation was able to provide the best opportunities.
” For such a large purchase project, it’s a combination of aspects”, he said.
” It’s not just federal policy or bonuses. You also need to look at the business itself, knowledge, because you need great talented individuals such as professionals and factory workers, there’s even supply chain, shipping.
” So our ultimate decision will take into account some factors.”
Since July, when the EU imposed severe taxes or fees on imports of electric cars from China, there has been more force to establish manufacturing outposts in Europe.
This was done, Brussels said, because carmakers in China were benefitting from “unfair grants” which allowed their vehicles to get sold worldwide very cheaply, undermining local companies. China accused the EU of corporatism.
By building its products in Europe, Chery may evade paying those taxes. However, Mr. Zhang insisted that his business had always been committed to nearby manufacturing.
” We are never trying to use any harsh practices”, he insisted.
” We want to be flexible to the local market, and provide the best products, using the best retailers. The only long-term approach is to be localized, he said.
The UK has not yet indicated whether it will implement levies of its own in a similar manner.
China’s domestic automobile market is huge, with more than 30 million cars sold each month.
Its play in the international market is currently significant, with almost 5 million cars exported final year. That was a 64 % improve on the year before.
Foreign companies still account for a small percentage of car sales in the UK, or about 5 % of total.
However, seasoned automakers worry that the price of Chinese manufacturers ‘ products may increase rapidly, with the expectation that a significant part will be played by the industry.