Chinese EV giants Chery and SAIC revive Europe’s struggling auto plants

Chinese electric vehicle giants Chery and SAIC are rapidly transitioning from export-oriented strategies to embedded local production in Europe, helping revitalize the continent's struggling automotive sector. The latest milestone is a preliminary agreement between Chery and Nissan to explore manufacturing Chery passenger vehicles at Nissan’s Sunderland plant in Britain—Europe’s largest automotive facility, employing about 6,000 workers and operating well below capacity. If finalized, production could begin in the first half of 2027. Meanwhile, SAIC, the state-owned parent of MG, is investing in new assembly plants and reviving idle factories in Spain and other European markets, creating a manufacturing base that bypasses tariff barriers and builds goodwill with local regulators.

This shift from pure exports to local partnerships is reshaping the competitive landscape. Rather than merely undercutting European automakers on price, Chinese companies are becoming collaborators—offering underused factories a new lease on life, injecting capital into R&D centers, and integrating into local supply chains. The trend is accelerating as European and Japanese brands seek to maximize factory utilization in a market where EV demand has slowed and margins are thin. For Europe, this infusion means jobs preserved, industrial know-how retained, and a faster path to electrification. For China, it provides a hedge against trade tensions and a deeper foothold in a market that once seemed closed.