Chery, China’s biggest passenger car exporter, is reportedly in talks with the Italian government about expansion possibilities. Besides the Stellantis (STLA) discussions, it appears that Italy wants to attract another top automotive manufacturer to boost local production.
Italy’s expansion of local auto production may include China’s Chery
According to its latest report, Chery sold more than 1.8 million units in 2023, establishing a 52.6% year-on-year increase. For the same period, the carmaker exported over 937,000 vehicles to take China’s top spot as its most prominent passenger vehicle exporter for 21 consecutive years.
In a Reuters exclusive, sources close to the matter indicated that Italy wants to grow its national vehicle manufacturing rate to 1.3 million vehicles per annum. Stellantis is the country’s foremost auto manufacturer and, according to reports, Italy wants the company to raise its product output to one million units.
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Should the talks between Italy and Chery bear fruit, the company will be one of the first Chinese automotive firms with a production footprint in Europe. According to Reuters, Italy’s minister for industry, Adolfo Urso, said that the country needs a second carmaker that delivers approximately 300,000 units per year.
Urso also said that the country had discussions with Tesla and three other unidentified Chinese automakers. The Italian government did not offer to comment on these talks or the possibility of any agreements.
However, the Chery managing director for Europe, Jochen Tueting, believes that European sales would justify a European-based manufacturing facility. He commented:
We are exploring different possibilities across Europe to look for a potential setup of local manufacturing for the future. We’re having discussions in several locations across Europe right now.
