Chinese automaker Chery is set to establish its first manufacturing site in Europe, with Spain being the chosen location for its ambitious plans. The move comes as Chery aims to introduce three brands in Europe and launch three new models for each brand by 2026.
Chery’s decision to manufacture cars in Spain is part of its broader strategy to penetrate the European market, which currently has an electric vehicle (EV) market share of just 12%, half that of Portugal and France. Despite the slow uptake of EVs in Spain, Chery intends to produce combustion engine, hybrid, and electric vehicles at its new facility.
The automaker plans to launch its first EV, the Omoda 5 EV, in Germany in the first half of this year, priced at €37,000 (approximately $39,750). Talks are underway for Chery to produce its vehicles at the former Nissan plant in Barcelona, which ceased operations in 2021, resulting in 1,600 job losses. Chery’s entry into Spain’s automotive sector could potentially bring back some of these jobs.
While details of any public aid offered to Chery remain undisclosed, Catalonia’s regional government is sending a senior business official to China to meet with Chery executives. Spain is also set to open two tenders this year, totaling €1.7 billion in loans and grants for EV production, as part of the PERTE scheme relying on European pandemic relief funds.
The former Nissan plant, now under the control of Spanish electric motorcycle company Silence and local engineering groups QEV and EV Motors, is poised to become a hub for EV production. EV Motors, which now has full corporate control of the hub, plans to produce EV trucks and vans under its Ebro brand alongside Chery vehicles.
Chery had previously considered building a plant in Italy, another European country with a low EV market share, but plans reportedly stalled. The company is now forging ahead with its plans in Spain, underscoring its commitment to expanding its presence in the European automotive market.
