Nissan and Chery have publicly confirmed they are in advanced talks to build Chery-branded vehicles inside Nissan’s Sunderland plant in the United Kingdom. The two companies have signed a non-binding memorandum of understanding and, if final terms are agreed, the first Chery cars could roll out of Sunderland as early as Nissan’s fiscal year 2027. The deal arrives on the back of Chery Group’s breakthrough April 2026 UK result: 10,052 units sold across Chery, Jaecoo and Omoda combined — second only to Volkswagen and well ahead of Nissan itself that month.
Chery × Nissan UK Deal: Headline Facts
- Plant: Nissan Sunderland (north-east England)
- Ownership: remains with Nissan; existing Nissan staff will build the Chery cars
- Production type: contract manufacturing under a non-binding MoU
- Earliest start: Nissan FY2027 (begins April 2027)
- Capacity source: one production line freed by Nissan’s recent two-into-one consolidation
- Initial product: a UK-market passenger model; specific nameplate not yet disclosed
- Chery UK April 2026 sales: 10,052 units (Chery + Jaecoo + Omoda)
- Volkswagen UK April 2026 sales: 12,884 units (No. 1)
- Nissan UK April 2026 sales: 4,079 units
Why Nissan Needs the Deal
Sunderland is one of the largest car plants in Europe and the long-time home of the Nissan Leaf and Qashqai. But Nissan has been quietly trimming capacity: it recently announced a consolidation of its two main production lines into one, freeing one entire line that — without a partner — would have sat idle. By taking Chery’s contract volume, Nissan keeps the second line warm, retains the skilled workforce in Sunderland and avoids the political fallout of cutting British manufacturing jobs.
Nissan has been careful to underline what is not changing. The Sunderland plant continues to be owned by Nissan, and Chery cars will be assembled by Nissan’s existing UK employees rather than seconded Chinese staff. From a Westminster point of view, that framing matters: the deal is structurally similar to the contract-assembly arrangements Magna and Valmet have long offered European OEMs, not a Chinese acquisition of British industrial capacity.
Why Chery Needs the Deal
The April UK numbers explain why Chery is in a hurry. Chery Group’s three retail brands in Britain — Chery, Jaecoo and Omoda — together delivered 10,052 cars in April 2026, more than double Nissan’s UK volume and only about 2,800 units behind Volkswagen’s monthly tally. For a Chinese OEM that did not have a single UK dealer five years ago, second place behind VW is a remarkable result.
Globally, Chery’s export momentum is just as strong. In May 2026 the group exported 181,871 vehicles, up 80.5% year-on-year. For the first five months of 2026, cumulative exports reached 752,755 units, up 69.5% YoY. With the EU still imposing additional duties on Chinese-built EVs, building cars inside the United Kingdom — which sits outside the EU tariff regime — is the cleanest way for Chery to lock in its British volume and limit duty exposure on future BEV/PHEV models.
What Will Get Built — and What Won’t
Nissan and Chery have not disclosed which model lands first in Sunderland. The two most logical candidates are the Omoda 5 and the upcoming Jaecoo SUV, both of which already account for the bulk of Chery’s UK retail mix. Industry sources expect a passenger SUV rather than a sedan, in line with British buyer preferences. Powertrain choice is also unconfirmed, but the EU’s tariff structure makes a BEV variant the most strategically valuable build.
What is clearly not on the table is a transfer of Nissan IP or platforms. Cars built at Sunderland will sit on Chery’s own platforms (likely T1X-derived for the SUV family) and carry Chery group branding rather than any Nissan badge. Nissan’s role is restricted to plant operations, quality, logistics and labour.
Wider Context: A Template for Chinese OEMs in Europe?
If the Chery–Nissan tie-up moves from MoU to binding agreement, it would mark the first time a Chinese automaker has used an established Japanese rival’s European plant as a contract assembler. Other Chinese groups have so far preferred either Greenfield investment (BYD in Hungary) or partner-shared brownfield (Leapmotor inside Stellantis’s Tychy plant). The Sunderland model — keep the host’s payroll, share the host’s plant, retain your own IP — could quickly become the template of choice for Chinese brands that want UK-built credentials without a multi-billion-pound capital outlay.
It is also a clear signal of where the UK car-buying public has moved. Volkswagen’s 12,884-unit lead at the top of the April chart is narrow, and the gap between Chery’s three-brand 10,052 and Nissan’s own 4,079 underscores how quickly Chinese-branded crossovers have eaten into Japanese mainstream volume in Britain.
FAQ: Chery × Nissan Sunderland Deal
Will Nissan sell the Sunderland plant to Chery?
No. Nissan has explicitly stated that ownership of the Sunderland plant remains with Nissan and that all cars — including Chery models — will be built by Nissan’s existing UK workforce under a contract-manufacturing arrangement.
When could the first Chery-branded car roll off the Sunderland line?
If the non-binding MoU is converted into a final agreement, Nissan has indicated production could begin as early as fiscal year 2027 (April 2027 onwards). The specific UK-market model has not yet been announced.
How well does Chery sell in the United Kingdom today?
In April 2026, Chery Group’s three UK brands — Chery, Jaecoo and Omoda — together sold 10,052 vehicles, the second-best result of any automaker that month behind only Volkswagen’s 12,884 units, and well above Nissan’s own 4,079.
Source: Autohome (autohome.com.cn) · Translated and adapted for English readers.
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