Chery Decides To Postpone Its First EV Assemble In Europe Until October 2025, This Is The Cause

Chery Omoda C5 EV. (Photo: Chery)

Chery announced delaying the target of producing electric vehicles in Europe until October 2025 or a year after the European Union (EU) set a temporary tariff for imported EVs from China.

As previously reported, the automotive brand from China will produce its first EV in Europe, namely Omoda 5 EV at Nissan's used factory in Barcelona, Spain.

Launching from Automotive News Europe, Tuesday, October 1, the Wuhu-based manufacturer is assessing how tariffs will affect their plans to bring a partial car for the final assembly.

The addition of EU import duties to 38 percent of imported electric vehicles from China came into effect temporarily in July, but remained dependent on negotiations between Brussels and Beijing.

The new retribution, which adds 10 percent to import costs, will be completed in early November, unless the majority of member countries that meet the requirements object.

This stipulation has sparked trade tensions and forced automakers in Europe and China to redesign their plans to sell more EVs in the blue continent region.

Both Chery and other Chinese electric vehicle manufacturers have opened factories in Europe to avoid import duties. EU officials have warned that manufacturers will be subject to a minimum rate of local value creation.

The factory in Barcelona, Spain is Chery's first assembly facility in Europe by utilizing a joint venture with local company EV Motors.

Chery said that the facility would become one of the export centers for the entire world by producing 150,000 vehicles per year in 2029.

In the construction of this factory, Chery and EV Motors invested 400 million euros and will employ up to 1,250 workers. The company from China plans to start production by the end of next summer and will take the initiative to employ 150 former Nissan workers.

This facility will partly be handed over to makers of Spanish electric motorcycle Silence and local group QEV and EV Motors, which plan to turn it into an electric vehicle hub.

Apart from Omoda, Chery plans to present a locally assembled Jaecool 7 SUV in the matador country. Meanwhile, EV Motors will launch the EBRO brand.