Chery Set to Expand UK Market with Fourth Brand Launch
Chinese carmaker Chery is pushing forward its aggressive expansion plans in the British market by launching a fourth brand, Lepas. The state-owned company aims to increase its foothold in the UK market, which it has rapidly become a major player in.
The new brand will focus on developing battery and hybrid SUVs aimed at younger families, primarily targeting the European market. Initially, these cars will be built in China and imported to the UK, where they won't face tariffs imposed by the US and EU.
This strategic move comes as Chery continues its push for market share. The company is reportedly in early-stage discussions with Jaguar Land Rover over a potential deal to use its factories to manufacture Chery cars. Although no agreement has been announced yet, it's clear that manufacturing in the UK is on Chery's radar.
Chery has already established itself as the largest exporter of cars from China for 23 years, but its failure to gain significant traction in Europe can be attributed to its focus on cheaper models for other regions like the Middle East. However, with the rise of electric cars and government subsidies, Chinese manufacturers have gained a foothold in European markets.
Chery has successfully launched three brands in recent times: Omoda in 2024, Jaecoo in January 2025, and its eponymous brand last summer. These car models have performed well in the UK market, with the company outdoing BYD, Tesla, Mini, Honda, and Mazda.
The UK sales figures also suggest that Chery is gaining momentum, with a recent surge in hybrid car sales combining smaller batteries with petrol engines. However, its main competitor, BYD, has overpowered it to become the world's biggest seller of battery electric cars.
Chery has not yet committed to manufacturing in the UK, but its director Victor Zhang has hinted at building a plant as part of a "localisation" strategy. The company aims for an "in UK, for UK, be UK" approach, which suggests setting up manufacturing is a serious option on the table.
The new brand launch comes with high expectations from Chery and the UK government, who are hopeful that eventually, the Chinese carmaker will decide to manufacture cars in Britain.
Chinese carmaker Chery is pushing forward its aggressive expansion plans in the British market by launching a fourth brand, Lepas. The state-owned company aims to increase its foothold in the UK market, which it has rapidly become a major player in.
The new brand will focus on developing battery and hybrid SUVs aimed at younger families, primarily targeting the European market. Initially, these cars will be built in China and imported to the UK, where they won't face tariffs imposed by the US and EU.
This strategic move comes as Chery continues its push for market share. The company is reportedly in early-stage discussions with Jaguar Land Rover over a potential deal to use its factories to manufacture Chery cars. Although no agreement has been announced yet, it's clear that manufacturing in the UK is on Chery's radar.
Chery has already established itself as the largest exporter of cars from China for 23 years, but its failure to gain significant traction in Europe can be attributed to its focus on cheaper models for other regions like the Middle East. However, with the rise of electric cars and government subsidies, Chinese manufacturers have gained a foothold in European markets.
Chery has successfully launched three brands in recent times: Omoda in 2024, Jaecoo in January 2025, and its eponymous brand last summer. These car models have performed well in the UK market, with the company outdoing BYD, Tesla, Mini, Honda, and Mazda.
The UK sales figures also suggest that Chery is gaining momentum, with a recent surge in hybrid car sales combining smaller batteries with petrol engines. However, its main competitor, BYD, has overpowered it to become the world's biggest seller of battery electric cars.
Chery has not yet committed to manufacturing in the UK, but its director Victor Zhang has hinted at building a plant as part of a "localisation" strategy. The company aims for an "in UK, for UK, be UK" approach, which suggests setting up manufacturing is a serious option on the table.
The new brand launch comes with high expectations from Chery and the UK government, who are hopeful that eventually, the Chinese carmaker will decide to manufacture cars in Britain.