Nissan planning deal to build Chinese cars in the UK

Nissan could soon be building Chinese cars in Britain after signing a preliminary agreement with Chery International UK to explore manufacturing cars at its Sunderland factory.

The two companies have signed a non-binding Memorandum of Understanding (MoU) which would see Nissan produce Chery passenger cars at its Sunderland plant from the 2027 financial year, subject to further negotiations and a final agreement.

If the deal goes ahead, the Japanese brand would continue to own and operate the Sunderland factory, with the team at the plant remaining employed by Nissan. Production of Chery vehicles would take place on the plant’s Line One production facility.

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The move comes as Chinese carmakers continue their rapid expansion across the UK market. Chery is behind the fast-growing Omoda and Jaecoo brands, both of which have gained significant traction with British buyers. The Jaecoo 7 was the UK’s best-selling car in March, highlighting the growing appeal of Chinese brands.

Chinese manufacturers have been steadily increasing their share of UK new car sales as consumers become more familiar with the brands.

The proposal would mark a significant milestone for Britain’s automotive industry, potentially making Sunderland one of the first UK factories to build cars for a major Chinese-owned brand at scale.

The agreement comes as part of Nissan’s efforts to improve efficiency at its Sunderland facility. In May, the company announced plans to consolidate manufacturing onto its Line Two production line while it explored ways to improve plant utilisation. Bringing Chery production to Sunderland could help fill spare capacity and secure future manufacturing activity at the site.

“This is an important step forward for our operations,” said Massimiliano Messina, chairperson at Nissan AMIEO. “We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies.”

The prospect of British-built Chinese cars may also help ease some of the concerns UK buyers still have about newer Chinese brands.

While many motorists are attracted by their competitive pricing and tech, some remain wary because they are unfamiliar with the manufacturers. A recent Carwow investigation also found that some owners have struggled to secure insurance cover for Chinese-made cars.

For Chery, local production could strengthen its position in the UK and Europe while reducing shipping costs and helping it respond more quickly to market demand.

The company has already opened a new hub in Liverpool to manage its UK operations, conduct research, and develop its business locally. Chery is also in talks to produce cars at Jaguar Land Rover’s (JLR) nearby Halewood factory.

The deal between Nissan and Chery, however, is far from confirmed. The MoU is non-binding, meaning neither company is committed to proceeding at this stage. Discussions are continuing behind closed doors, and both parties say no further details will be released for now.

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