Jaguar Land Rover on brink of deal to build Chinese cars in Britain
A deal between the British and Chinese brands could see Chery models built using spare JLR capacity
Chery is on the brink of signing a deal with Jaguar-Land Rover to build cars in the UK. It’s a move that could not only come as a welcome boost for our nation’s struggling automotive manufacturing industry, but also further solidify the Chinese maker within the British car market.
Prime Minister Keir Starmer is currently on a visit to Beijing in order to bolster trading relations between the UK and China. One of the key subjects of official discussions will be the UK and Chinese car industries, with a deal between JLR and Chery on the cards, which could see the latter building its cars on British soil.
A deal between JLR and Chery is not a new thing; the two automotive giants formed Chery Jaguar Land Rover in 2012 in order to build some JLR models on Chinese soil. Despite a decrease in sales in 2025, China remains JLR’s second-largest market outside the U.S, with models such as the forthcoming electric Freelander to be produced exclusively for Chinese buyers.
However, this latest deal could see Chery take advantage of spare capacity at JLR’s manufacturing plants; maximising productivity in this way should help protect jobs and rake in extra revenue for JLR after a disastrous year in 2025 as a result of the cyber attack, which saw production shut down for more than five weeks.
Speaking to Auto Express, Professor of Economics at Birmingham Business School, David Bailey, said: “Such moves reflect a pragmatic attempt to manage risk, improve asset use, and sustain industrial capability during a period of structural change.
“Chery is already seeing remarkable brand growth in the UK,” Bailey continued, “so having it produce cars here can only be a good thing for production and consumers.”
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Despite having only made its UK market debut back in August 2025, Chery sold more than 5,500 cars in Britain last year. This makes its market share larger than even the likes of familiar brands such as Alfa Romeo, DS, Genesis and Smart. Sales are expected to increase this year with the flagship Tiggo 9 seven-seater having only just gone on sale in October.
Auto Express has approached both JLR and Chery for comment, but is yet to receive a response.
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