Nissan to Manufacture Chery Vehicles for European Market

[International Cooperation] Nissan will produce vehicles for Chery at its UK plant, accelerating Chinese automakers' overseas localization.

Core Development: Nissan Sunderland Plant to Begin Contract Manufacturing for Chery in 2027

Nissan Motor and Chery International UK signed a non-binding memorandum of cooperation in June 2026, planning to start contract manufacturing Chery models from April 2027 on Line 1 of Nissan’s Sunderland factory in the UK. The plant once produced 600,000 vehicles annually, but output dropped to just 273,000 units in 2025, operating below 50% capacity utilization.

Strategic Rationale: Idle Capacity Meets Chinese Automakers’ Global Expansion Needs

Nissan will consolidate its own models—including Qashqai, Juke, and Leaf—onto Line 2, freeing up Line 1 entirely for Chery’s production requirements. Employees and asset ownership will remain under Nissan. This move alleviates Nissan’s overcapacity pressures while enabling Chery to achieve localized production in Europe, circumventing trade barriers.

Industry Impact: Chinese Technology Export and Manufacturing Leadership Advance in Tandem

Meanwhile, India’s Tata Group also plans to develop its premium electric vehicle Avinya series based on Chery’s platform, with the first model launching in 2027. This highlights Chinese automakers’ strategic shift from simple vehicle exports toward a more advanced global expansion model centered on technology licensing plus manufacturing collaboration.