Chinese automaker Chery is making a bold bet: instead of shipping cars from China to the world, it wants to build most of them in the countries where they're sold. At an event at its headquarters in Wuhu, executive vice president Zhang Guibing said overseas-made vehicles now account for about 48% of the company's export volume this year. That share is expected to climb past half by year-end, hit 60% next year, and reach 70% by 2030.
Chery, which sells brands like Omoda and Jaecoo, is one of China's biggest car exporters. Its new strategy reflects a broader shift among Chinese automakers as they face rising trade barriers and look to become more than just distant suppliers.
Why build abroad?
The move is driven by more than just sales ambitions. Building cars in the destination market can help Chery sidestep tariffs aimed at imported Chinese-made vehicles. Many governments, especially in Europe and North America, have imposed or threatened higher duties on Chinese EVs to protect local industries. By assembling cars locally, Chery can reduce its exposure to those import taxes.
Shipping costs also matter. Cars are bulky and expensive to transport across oceans. Producing closer to customers cuts logistics expenses and shortens delivery times. And there's another factor: "local content" rules. Some countries offer incentives, tax breaks, or government contracts only to companies that source a significant portion of parts and labor domestically. By building locally, Chery can qualify for those benefits.
Chery is also trying to position itself as a long-term partner rather than an outsider. The company says it wants to create jobs and work with local technology firms. That's a smart public relations move, especially in markets where Chinese brands face skepticism.
Infrastructure and new ventures
Chery isn't stopping at car assembly. The company plans to start building fast-charging and energy-storage stations in the UK, Spain, and Thailand from 2027. That would help address one of the biggest hurdles for EV adoption: charging availability. It also plans to launch robotaxis in the United Arab Emirates starting next year, a move that could showcase its technology in a high-profile market.
These plans signal that Chery sees itself as a mobility company, not just a carmaker. But for investors, the key takeaway is the production shift.
What it means for investors
Chery's timeline—from roughly 48% of exports built overseas this year to 70% by 2030—points to a strategy that changes where cost and policy risks land. More local assembly usually means less exposure to sudden tariff changes, fewer shipping-related disruptions, and an easier path to qualify for local incentives tied to domestic production.
If Chery can scale that model in the markets it named, including the UK, Spain, and Thailand, it may be able to sustain aggressive pricing even as governments tighten scrutiny of imports. That matters for incumbent automakers and their suppliers: competition wouldn't just arrive in a container ship, it would show up as locally made capacity competing for the same buyers.
For everyday investors, this is a reminder that the global auto industry is being reshaped by trade policy as much as by technology. Companies that can adapt—by building where they sell—may have a competitive edge. Those that rely on exporting from a single country could face headwinds.
Chery's move also echoes trends in other sectors. For example, China's recent growth has been driven heavily by exports, but that reliance is now being tested. Similarly, Chery's plans to build the Omoda C4 in South Africa show the company is already putting its local-production strategy into practice in specific markets.
Investors should watch how Chery executes this shift. Building factories abroad is capital-intensive and comes with its own risks, such as managing operations in unfamiliar regulatory environments. But if Chery succeeds, it could become a template for other Chinese automakers looking to expand globally.
For now, the message from Chery is clear: the era of simply shipping cars from China is ending. The next phase of its global growth will be built on local roots.
