Chinese car brand Omoda in talks over European production plant


Howard Mustoe
Fri, 22 December 2023 

Omoda 5 OMODA - CHINESE CAR

Chinese car brand Omoda is moving towards producing cars in Europe, its UK boss has claimed.

Victor Zhang said the company, which is owned by state-backed carmaker Chery, is considering where to house its European base – a decision that will be driven in part by the workforce available and local government incentives.

Omoda has plans to start selling cars in the UK from March across 50 showrooms, expanding to 100 dealers by 2025.


Mr Zhang said: “We have some ongoing discussions but they are not finalised and this is a big project. Many Chinese brands are also talking about this.”

International car makers often decide on local production when rolling out new models.

Japan’s Nissan chose the UK for its large plant in Sunderland, while Hyundai assembles its cars in the Czech Republic.

One manufacturing site will “hopefully” be enough to support Omoda’s entire European business, said Mr Zhang.

Omoda is an outlier among Chinese brands such as BYD and Funky Cat in that it is not planning electric-only UK launches ahead of the Government’s ban on selling petrol and diesel-only cars by 2035.

Instead, it expects about 70pc of its sales to initially be for petrol cars, with the remaining 30pc electric.

On deciding where to build a future car plant, Mr Zhang said the company could make a decision in 2024.

Omoda already has a research centre in Germany which employs about 50 people.

Chinese-made cars are already a large part of the electric car market in the UK, with MG – owned by SAIC Motor Corp – recording more than £1bn sales in Britain last year.

British drivers are also buying Geely’s Polestar and Volvo models, which are owned by Hangzhou-based Geely.

BYD, which counts Warren Buffett as an investor, and Great Wall Motor are also entering the UK market.

Chinese car brands are stepping in with cheaper options for buyers facing large price increases in recent years.

Their access to cheaper labour and a much more mature supply chain for the components used in electric cars, such as lithium, has handed them an advantage over European and US car makers.

Earlier this year, Vauxhall owner Stellantis warned of a coming “invasion” of cheap Chinese cars.

The £26,995 MG 4 SE with 218 miles of range is probably the cheapest electric vehicle on offer in the UK and can be compared to the similarly sized Volkswagen ID.3 at £36,375.