Chery expects at least 50% of the vehicles it sells outside China to be manufactured overseas by the end of 2026, rising to 60% in 2027 and 70% by 2030, as the automaker expands local production to support its international growth.
Executive Vice President Zhang Guibing outlined the targets at Chery’s headquarters in Wuhu, China. The company said approximately 48% of its overseas sales vehicles had been built outside China so far in 2026.
The strategy combines new production facilities, partnerships with local manufacturers and the acquisition or reuse of existing automotive plants. Several of Chery’s planned expansions involve facilities previously operated by Nissan, allowing the Chinese automaker to use established manufacturing infrastructure as Nissan restructures its global operations.
“Step by step, we are trying to localise production and rely mainly on local manufacturing,” Zhang said, adding that the approach is also intended to create jobs and support cooperation with local technology partners.
Overseas Manufacturing Network Expands
Chery currently has four main overseas manufacturing bases in Brazil, Egypt, Kazakhstan and Malaysia. It also operates assembly activities in Indonesia, Thailand and Pakistan.
Many of its full-scale overseas manufacturing operations involve local partners, including CAOA in Brazil, GB Auto in Egypt and Inokom in Malaysia. Production strategies vary by market, with facilities tailored to local vehicle demand and regional export opportunities.
Brazil produces flex-fuel and hybrid SUVs for South America, while Egypt serves North African markets. Thailand is positioned as a regional manufacturing hub for right-hand-drive electric vehicles and hybrids.
The company is seeking to increase the proportion of vehicles manufactured close to their destination markets, reducing its reliance on exports from China and potentially improving its ability to respond to local market requirements.
Former Nissan Plants Offer a Route Into New Markets
Several recent Chery manufacturing moves involve facilities previously operated by Nissan.
In South Africa, Chery acquired Nissan’s Rosslyn plant in January 2026 and reopened the facility in July. Production is expected to begin in mid-2027.
In Spain, Chery’s partnership with Ebro at Nissan’s former Barcelona plant is scheduled to begin pre-series production of the Jaecoo 5 battery-electric vehicle by the end of 2026. Mass production is planned for the first quarter of 2027.
In the United Kingdom, Chery has signed a memorandum of understanding to explore contract manufacturing at Nissan’s Sunderland plant. The proposal remains under discussion and has not been confirmed as a production commitment.
The moves come as Nissan restructures its global manufacturing footprint. The Japanese automaker has announced plans to close seven of its 19 global production facilities and reduce its worldwide workforce by as much as 20%.
For Chery, taking over or sharing existing facilities can provide access to established industrial sites and local supply networks without requiring every overseas operation to be built from scratch.
European Trade Rules Strengthen the Case for Local Production
Changes to European trade policy are adding urgency to Chery’s localisation plans. The European Union has imposed additional duties on battery-electric vehicles manufactured in China, with rates varying by manufacturer. Chery faces an additional duty of 20.7%, bringing the combined EU tariff on its affected vehicles to 41.3%.
These duties apply to covered electric vehicles produced in China, rather than all vehicles imported from the country. Manufacturing vehicles within the EU can therefore change how a company is affected by the measures, depending on the vehicle and applicable trade rules.
The United Kingdom has also indicated that it could consider a similar approach to trade measures. Meanwhile, proposed European industrial policies focused on local production could further influence manufacturers’ decisions about where to assemble vehicles and source components.
Other Chinese automakers are pursuing comparable strategies. BYD is developing production in Hungary and has indicated that it sees a need for three European assembly plants alongside a local battery factory. Leapmotor and Geely are also pursuing production arrangements that draw on relationships with established automotive companies, including Stellantis and Ford.
Chery Considers Further Expansion in Asia
Chery’s localisation strategy extends beyond Europe and Africa. The company plans to enter Japan’s kei-car segment in 2027 under the Emta brand, initially using vehicles imported from China. Japanese production from 2030 is under consideration.
To support its international supply chain, Chery signed an agreement in June with CMA CGM and its subsidiary Ceva Logistics. The agreement covers logistics for finished vehicles, parts and electric vehicle batteries across Europe, Asia-Pacific, Latin America and the Middle East.
The company is also planning investments in supporting infrastructure. From 2027, it intends to begin installing fast-charging and energy storage stations in markets including the United Kingdom, Spain and Thailand.
Local Integration Becomes Part of Chery’s Strategy
Beyond manufacturing, Chery is positioning local economic participation as part of its overseas expansion. Production partnerships and infrastructure investments could help the company establish closer relationships with suppliers, employees and customers in its target markets.
During the reopening of the Rosslyn plant in South Africa, Chairman Yin Tongyue highlighted the company’s stated approach to operating in overseas markets.
“No matter where it invests, Chery Auto will try its best to integrate into the local economy, local community and the future of this country in every market it enters,” said Chairman Yin Tongyue.
Chery’s targets would substantially increase the role of overseas factories in its international sales by the end of the decade. Whether it reaches those goals will depend on the execution of planned projects, local demand, regulatory developments and the pace at which production facilities become operational.