Chery Auto, a Chinese automaker based in Wuhu, is set to make its entry into the European market by starting car production in Spain. This marks Chery's first move into Europe and is part of its broader strategy to launch three brands in the region, each with three new models over the next two years. 

Jochen Tueting, Managing Director of Chery Europe, expressed confidence in the brand's future success in Europe, stating that the company is "convinced we will become a relevant brand." Chery plans to offer a range of vehicles in Europe, including gas-powered, hybrid, and electric models, to cater to varying levels of adoption of cleaner vehicles across the continent.

In Spain, electric vehicles currently account for just 12% of the auto market, below the European average of 14%.

Spain’s Industry Ministry announced that it expects to finalize an agreement to start production in Barcelona shortly. This follows meetings between a Spanish delegation and Chery executives in China, as well as discussions between Chery and Catalonian business officials.

The negotiations focus on reviving Nissan’s Barcelona plant, which was closed in 2021 as part of cost-cutting measures, resulting in the loss of about 1,600 jobs. Chery’s potential takeover could restore some of these jobs. The plant had been partially taken over by Silence, an electric motorcycle company, and Spanish engineering groups EV Motors and QEV. EV Motors, now in full control of the facility, plans to produce EV trucks and vans under the Ebro brand, potentially in collaboration with Chery.

Chery is also in discussions with Italy to establish auto manufacturing there, as Italy seeks to boost its national car production from under 800,000 vehicles in 2023 to 1.3 million annually. Italy’s EV sales currently make up just 4% of the market, and the country has also engaged with Tesla and other Chinese brands about car production.