8:53 am, February 2, 2026
JLR is on the cusp of agreeing a landmark deal to build Chery vehicles at its UK production facilities after the Chinese brand confirmed plans to open a new European headquarters in Liverpool.
New proposals could see Chery’s commercial vehicle division launch a research and development HQ on Merseyside, with the subject one of many to come up during PM Kier Starmer’s recent visit to China.
The Guardian reports that the facility would likely include research, engineering, and commercial functions, as part of the brand’s ‘localisation’ strategy.
If the deal is agreed, it could pave the way for a separate agreement between JLR and Chery, which would see the British marque take on UK production of Chery vehicles.
While no agreement has been finalised, the government is thought to be keen on facilitating a deal and business secretary, Peter Kyle, is believed to have discussed the issue with executives at JLR.
The new research and development also has political backing from Liam Robinson, the leader of Liverpool city council, who said the plans were a ‘major vote of confidence’ in the city.
If the partnership does get agreed, it is likely that JLR would take advantage of spare capacity at its manufacturing plants to build Chery vehicles.
Discussing the proposals, David Bailey, professor of business economics at the University of Birmingham, told Auto Express: ‘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, so having it produce cars here can only be a good thing for production and consumers.’
Outlining the brand’s plans, Gong Yueqiong, general manager of Chery Commercial Vehicle, said that Chery wanted to become a ‘valued contributor to the UK’s automotive industry and economy’.
He said: ‘Our “In UK, For UK, Be UK” strategy reflects our belief that true globalisation comes from deep localisation.
‘By recruiting local talent, collaborating with UK institutions, and adapting to local needs, we aim to become a valued contributor to the UK’s automotive industry and economy.
‘Our strategy reflects our confidence in the UK’s talent, infrastructure, and commitment to green technology.’
JLR has not commented on the current speculation.
