Beyond the Assembly Line: How Chery is Outflanking Tariffs by Acquiring Rival Infrastructure and Localising the EV Ecosystem

Chinese automotive manufacturer Chery Automobile is executing an aggressive global localisation strategy that extends far beyond basic vehicle assembly. By embedding itself deeply into overseas markets through localized charging infrastructure, robust logistics partnerships, and the strategic acquisition of surplus manufacturing capacity from Western rivals, Chery is systematically neutralizing the protectionist trade barriers designed to curb its international expansion.

Speaking at the company’s headquarters in Wuhu, China, Executive Vice President Zhang Guibing outlined an ambitious roadmap for the automaker’s international footprint. Chery expects at least 50% of the vehicles it sells abroad to be manufactured outside of China by the end of this year, a notable increase from the roughly 48% recorded earlier in 2026. This trajectory is slated to accelerate rapidly, with overseas production shares projected to reach 60% next year and climb to 70% by 2030.

This rapid pivot toward decentralized manufacturing is not merely a logistical preference; it is a calculated masterclass in regulatory evasion and market integration. By utilizing pre-existing assembly footprints that legacy automakers can no longer support, Chery is converting a competitor’s industrial surplus into its own strategic advantage, effectively bypassing escalating tariff walls in Europe, Africa, and beyond.

The Blueprint for Global Expansion: Turning Rivals’ Surplus into Strategic Assets

A defining characteristic of Chery’s global strategy is its opportunistic acquisition of underutilized or abandoned production plants previously operated by established legacy automakers, most notably Nissan. As traditional Western and Japanese carmakers grapple with restructuring, overcapacity, and the expensive transition to electrification, Chery has stepped in to acquire or share surplus facilities.

This approach was highlighted in January 2026, when Chery officially acquired Nissan’s Rosslyn plant in South Africa. After moving swiftly to reopen the facility in July, the company anticipates localized production of models such as the Tiggo 4 cross to commence by mid-2027. Similarly, in Europe, Chery forged a strategic partnership with Spanish automotive firm Ebro to take over Nissan’s former manufacturing plant in Barcelona. Pre-series production of the Jaecoo 5 battery-electric vehicle (BEV) at the Spanish facility is slated to begin by the end of this year, paving the way for mass commercial production in the first quarter of 2027.

The cooperation between Chery and Nissan may not stop there. In the United Kingdom, Chery has signed a memorandum of understanding (MoU) to explore contract manufacturing at Nissan’s massive Sunderland plant. While these discussions remain ongoing, they underscore a broader trend: Chinese automakers are increasingly leveraging cooperation with legacy brands that are forced to shrink their global operational footprints. Nissan’s broader restructuring plan involves shuttering seven of its 19 global production facilities and slashing its worldwide workforce by up to 20%, creating a vacuum that ambitious Chinese entrants are eager to fill.

Current Manufacturing Footprint and Regional Specialisation

Chery’s broader international network relies on a combination of full-scale manufacturing bases and complete knock-down (CKD) kit assembly operations. Currently, the automaker operates four primary overseas manufacturing hubs located in Brazil, Egypt, Kazakhstan, and Malaysia. In addition to these fully operational bases, it maintains kit assembly operations in Indonesia, Thailand, and Pakistan.

Significantly, the majority of these full assembly plants are managed in cooperation with robust local partners. In Brazil, Chery works alongside CAOA; in Egypt, it collaborates with GB Auto; and in Malaysia, operations run through Inokom. Each of these facilities is meticulously tailored to meet the specific demands of its regional market:

• South America: The Brazilian site focuses on manufacturing flex-fuel and hybrid SUVs suited to local fueling infrastructure and consumer preferences.
• North Africa: The Egyptian plant acts as a vital supply node for the broader North African market, securing regional trade advantages.
• Asia-Pacific: The Thai facility functions as a dedicated right-hand-drive hub, specializing in the production of electric vehicles and hybrids for regional distribution.

During the reopening ceremony of the Rosslyn plant in South Africa, Chery Chairman Yin Tongyue emphasized the philosophy guiding these ventures. "No matter where it invests, Chery Auto will try its best to integrate into the local economy, local community, and the future of this country in every market it enters," Yin stated, underscoring the brand’s pivot from an export-led model to an embedded, localized corporate citizen.

Navigating the Regulatory Minefield of Tariffs and Trade Policies

The urgency behind Chery’s aggressive localization drive is heavily dictated by shifting trade policies in key Western markets, particularly the European Union and the United Kingdom. Brussels has implemented steep punitive tariffs of up to 45% on battery-electric vehicles imported directly from China, with Chery facing a targeted duty of 41.3%. Meanwhile, the UK government has signaled that it may introduce a similar protective regime to shield its domestic market from cheap EV imports.

In addition to defensive tariffs, the EU is rolling out upcoming "Made in Europe" regulatory frameworks designed to financially reward automotive manufacturers that build vehicles locally within the trading bloc. By establishing manufacturing operations inside Spain and potentially the UK, Chery is effectively positioning itself on the correct side of regulations expressly drafted to contain Chinese competitors.

Chery is far from alone in recognizing this geopolitical reality. Fellow Chinese automaker BYD is executing a parallel strategy, anchored by its new manufacturing plant in Hungary. BYD executives have publicly indicated that the company will ultimately require three separate European assembly plants, alongside a dedicated regional battery factory, to insulate itself from protectionism. Meanwhile, other Chinese brands like Leapmotor and Geely are pursuing asset-light localization strategies by partnering with Western industrial giants Stellantis and Ford to share production capacity at existing European sites.

Expanding Beyond Manufacturing: Infrastructure, Logistics, and Autonomous Mobility

Chery’s localization strategy goes far beyond merely bolting cars together on foreign soil. The automaker is actively building out the surrounding automotive ecosystem—investing in charging infrastructure, global logistics networks, and advanced mobility services—to secure long-term market penetration.

Recognizing that EV adoption depends heavily on reliable local infrastructure, Chery announced plans to begin installing high-speed charging stations and energy storage systems in key international markets, including the UK, Spain, and Thailand, starting in 2027. By owning parts of the charging ecosystem, Chery aims to alleviate consumer range anxiety and establish a direct touchpoint with its customer base.

To manage its sprawling global supply chain, Chery entered into a sweeping strategic agreement in June with CMA CGM and its logistics subsidiary, Ceva Logistics. This partnership oversees the intricate global transport of finished vehicles, replacement parts, and EV batteries across Europe, the Asia-Pacific region, Latin America, and the Middle East.

Furthermore, Chery is replicating BYD’s playbook in Asian markets outside of China. The company has announced plans to enter Japan’s highly competitive and culturally unique kei car segment by 2027 under the Emta brand. While initial models will be imported directly from China, Chery is already evaluating the feasibility of local Japanese production by 2030, a move that would represent a significant milestone for a Chinese automaker entering the traditionally insular Japanese domestic market.

Fact-Based Analysis of Market Implications

Chery’s rapid transition from a China-centric exporter to a globally distributed manufacturer carries profound implications for the global automotive landscape.

First, it effectively circumvents the protectionist intent of Western trade tariffs. Tariffs are fundamentally designed to protect domestic industries by making imported Chinese vehicles financially uncompetitive. However, by shifting up to 70% of its production outside of China by 2030, absorbing local labor forces, utilizing local suppliers, and partnering with domestic firms, Chery neutralizes the justification for such duties. Regulators will find it politically and economically difficult to penalize vehicles that provide local manufacturing jobs and economic value.

Second, the strategy places immense pressure on legacy Western and Japanese automakers. Companies like Nissan, Ford, and Stellantis are currently restructuring due to margin pressures and slowing EV adoption curves. By absorbing their surplus industrial capacity, Chinese manufacturers are gaining turnkey access to advanced manufacturing hubs without having to shoulder the immense capital expenditure of greenfield construction. This dynamic accelerates the globalization of Chinese automotive brands while simultaneously shrinking the global footprint of legacy incumbents.

Ultimately, Chery’s comprehensive approach—spanning localized manufacturing, energy infrastructure, and logistics—signals a permanent maturation of the Chinese automotive industry. The era of simply shipping vehicles across oceans is giving way to a deeply entrenched multinational model, ensuring that Chinese brands will remain formidable competitors in Western and emerging markets for decades to come, regardless of trade barriers.