Duties on Chinese e-cars? Chery is in Europe to stay. And examines the Italy dossier

Chery is not intimidated by the European dues. The largest Chinese carmaker by export volume, with 922,830 vehicles in 2023 (almost half of total sales, 1.88 million), continues to bet on the Old Continent market. And, in the voice of its executive vice-president and president of European operations, Charlie Zhang, he hints, without providing figures, that the budget required to succeed will be 'enormous'.

Founded in 1997, Chery is a state-owned group and sells in 80 countries. In Italy it accompanies the success of the Molise-based DR Automobiles (which also works with Jac and since January has entered into an exclusive partnership with another Chinese state-owned giant, Baic). In April, it announced a Spanish joint venture with EV Motors. The new Barcelona hub will be operational by the end of the year: it will produce 150,000 electric vehicles per year, branded Ebro, by 2029. When fully operational, the plant will serve as a base for exports to the rest of Europe and other countries.

Locating production in Europe, according to Zhang, should help Chery 'mitigate some of the impact' of the duties. 'The factory in Spain is not greenfield, we need to modernise it to be able to introduce our technology and push production to the maximum'. But the Chinese player is also evaluating all options for a second factory, in which to produce its Omoda and Jaecoo brands, due to arrive in Italy within a few weeks with petrol engines (thus not subject to duties). Within the year, then, the first battery and plug-in hybrid versions will debut. In 2025 the flagships. Italy, where Chery can count on a distribution network of 40 dealers from north to south, is one of the possible targets for the second continental production plant.

Negotiations with the government have been ongoing for weeks and the Chinese manager seems to be leaving the door open. 'Every government would like foreign direct investment from China, but Italy is a country with a great tradition in industry and design. I'm thinking of Ferrari, Maserati, Pininfarina. Moreover, the Italian market is very big and also offers great opportunities, which we will explore'. Does Italy have the qualities to attract a player that needs to make cost competitiveness its strong point? 'Cost competitiveness is very important. We could play a significant role in the transformation of the Italian automotive industry. In addition, we would also like to be part of the local community, to create jobs'.

Chery Auto, says its vice-president, is in Europe to stay. "We aim to stay in Europe for a long time. Our motto is 'In Europe for Europe', because we intend to be a European company for European customers, to all intents and purposes. We will try to keep up with what the authorities prescribe. And we don't want to be seen as a threat to other brands. To think that by coming to Europe we can destroy the ecosystem is a misperception. Rather, we are focused on the customer journey, we will listen to customers. We will try to create brand awareness by offering a mix of great products, technology and extended warranties'. The goal is to sell 3-400 thousand cars in Europe by 2030.