A deal between Jaguar Land Rover (JLR) and Chinese automaker Chery is nearing completion, potentially bringing Chery production to UK manufacturing plants. This move comes as JLR seeks to maximize efficiency amid a turbulent year following a major cyberattack and as Chery continues to expand its presence in the British car market.
Context: The Evolving UK-China Automotive Relationship
The partnership isn’t new. JLR and Chery established Chery Jaguar Land Rover in 2012 to produce JLR models in China. However, this latest development signifies a reversal: bringing Chinese production to the UK. This shift reflects broader trends in the automotive industry, where manufacturers seek to optimize capacity, reduce risks, and adapt to changing global dynamics.
Why This Matters: Production, Jobs, and Market Share
Chery’s growth in the UK has been rapid. Despite entering the market in August 2025, the brand sold over 5,500 vehicles last year, surpassing established automakers like Alfa Romeo, DS, Genesis, and Smart. This growth suggests strong consumer demand for Chinese vehicles in the UK.
For JLR, the deal could provide much-needed revenue and protect jobs. The company suffered a severe blow in 2025 when a cyberattack halted production for over five weeks. Utilizing Chery’s production capabilities at existing JLR facilities could help fill spare capacity and ensure financial stability.
Expert Insight: A Pragmatic Move
According to David Bailey, Professor of Economics at Birmingham Business School, the deal is a “pragmatic attempt to manage risk, improve asset use, and sustain industrial capability during a period of structural change.” He also points out that Chery’s growing brand recognition in the UK makes local production a logical step.
The Bigger Picture: Geopolitics and Automotive Strategy
This agreement arrives as UK Prime Minister Keir Starmer visits Beijing to strengthen trade relations. The automotive industry is a key part of these discussions, highlighting the increasing interdependence between the two nations. While geopolitical tensions may linger, economic realities are driving collaboration.
The deal is still pending official confirmation from JLR, though Chery UK declined to comment at the time of reporting. Regardless, the move is poised to reshape the UK automotive landscape and reinforce China’s influence in a vital European market.
In conclusion, Chery’s potential expansion into UK production represents a strategic move by both companies: boosting JLR’s capacity while solidifying Chery’s foothold in a competitive market. The long-term implications include further integration of Chinese manufacturing into the UK economy and a re-evaluation of traditional automotive supply chains.
