Chery’s UK Expansion: A Sign of China’s Growing Automotive Influence
Chery Automobile is rapidly establishing a foothold in the UK automotive market, launching its fourth brand, Lepas, alongside Omoda, Jaecoo, and the Chery brand itself. This aggressive expansion signals a broader trend: the increasing influence of Chinese automakers on the global stage, particularly in Europe.
Why the UK? A Strategic Market for Chinese Automakers
The UK presents a particularly attractive market for Chinese car manufacturers. Unlike the US and EU, the UK currently does not impose tariffs on imported vehicles from China. This allows Chery to offer competitive pricing and gain market share more easily. The UK market is known for its openness to new brands and a willingness to embrace innovation.
Chery’s commitment extends beyond simply importing vehicles. The company has announced plans to establish a European research and development headquarters in Liverpool, focusing on commercial vehicles. This investment demonstrates a long-term strategy to integrate into the UK economy and leverage British expertise in areas like software development and engineering.
Lepas: Targeting European Families with Hybrid and Electric SUVs
The Lepas brand is specifically designed to appeal to European consumers, with a focus on battery-electric and hybrid SUVs aimed at younger families. The first Lepas model, the L8 plug-in hybrid midsize SUV, will launch initially in Italy. Chery has stated its ambition to introduce five different Lepas models within three years.
The L8 is based on the Chery Tiggo 8, sharing its platform, powertrain options, and technology. This approach allows Chery to quickly bring new models to market while leveraging existing investments.
Beyond Chery: The Rise of Chinese Brands in the UK
Chery is not alone in its pursuit of the UK market. Chinese brands like BYD, MG, and SAIC are also experiencing significant growth. In 2025, nearly 10% of all new cars registered in the UK were manufactured in China, nearly doubling the 4.9% market share from the previous year. BYD, in particular, has seen success, with the UK becoming its largest overseas market, boasting over 51,500 vehicle sales in 2025.
This growth is partly attributed to the availability of affordable electric vehicles and government subsidies for Chinese manufacturers. The UK’s relatively open market, combined with the challenges faced by traditional automakers, has created an opportunity for Chinese brands to gain traction.
Brexit’s Unexpected Benefit for Chinese Automakers
While Brexit has presented challenges for the UK automotive industry it has inadvertently created an advantage for Chinese manufacturers. The absence of tariffs on imported vehicles from China, coupled with potential complications for exporting vehicles from the UK to the EU under new rules of origin, makes the UK a more attractive entry point to the European market.
Potential for Local Production?
Chery is exploring the possibility of establishing local production in the UK, potentially utilizing existing facilities at Jaguar Land Rover (JLR). Discussions are underway, but no agreement has been reached. Local production would further solidify Chery’s commitment to the UK and create jobs, but it would also require significant investment and navigating the complexities of post-Brexit trade regulations.
FAQ
Q: What is Lepas?
A: Lepas is Chery Automobile’s fourth brand to launch in the UK, focusing on battery-electric and hybrid SUVs.
Q: Why is Chery launching so many brands?
A: Chery is diversifying its portfolio to target different segments of the European market and increase its overall market share.
Q: Will Chinese cars be manufactured in the UK?
A: Chery is considering local production in the UK, potentially partnering with Jaguar Land Rover, but no final decision has been made.
Q: What impact will Chinese automakers have on the UK automotive industry?
A: Chinese automakers are increasing competition, offering consumers more choices, and potentially driving innovation in the electric vehicle market.
Did you know? Chery has been the largest exporter of cars from China for 23 years.
Pro Tip: Keep an eye on the development of Chery’s R&D headquarters in Liverpool, as it could signal a significant long-term investment in the UK automotive sector.
Explore our other articles on the Chinese economy and the SUV market to learn more about these evolving trends.
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