Chinese state-owned automotive giant Chery has announced the launch of its fourth brand in the United Kingdom, marking a significant expansion of its already growing presence in the British market. The new brand, named Lepas, will focus on battery-electric and hybrid SUV models primarily targeted at younger families across Europe.
Strategic Expansion in the UK Market
Chery's decision to introduce the Lepas brand underscores its ambitious strategy to capture greater market share in the competitive UK automotive sector. This move follows the company's successful launches of the Omoda brand in 2024, Jaecoo in January 2025, and its eponymous Chery brand last summer. In 2025 alone, Chery sold 53,600 vehicles in the UK, representing 2.7% of the market and outperforming established competitors including BYD, Tesla, and German-owned Mini, while also significantly outselling Japanese rivals such as Honda and Mazda.
Initial Production and Import Plans
Initially, Lepas vehicles will be manufactured in China and imported directly to the UK. This approach benefits from the absence of the tariffs imposed by the United States and European Union on Chinese automotive imports, providing Chery with a competitive advantage in pricing and market entry. The British government remains optimistic that this initial import phase could eventually lead to domestic manufacturing within the UK, aligning with broader industrial and economic development goals.
Potential for UK Manufacturing
While Chery has not yet made a firm commitment to establish manufacturing operations in Britain, the company has actively indicated it is considering this possibility. Victor Zhang, Chery's UK director, stated in June that the company was "actively considering" building a UK plant as part of a comprehensive "localisation" strategy. This aligns with Chery's repeatedly stated ambition to pursue an "in UK, for UK, be UK" approach, suggesting that setting up local production facilities is a serious long-term option under evaluation.
Collaboration with Jaguar Land Rover
In a development that could accelerate domestic production, Britain's largest automotive employer, Jaguar Land Rover, is engaged in early-stage discussions regarding a potential deal to utilise its existing factory infrastructure for manufacturing Chery vehicles. Although no formal agreement has been announced, such a partnership could provide Chery with established manufacturing capabilities and expertise, while offering JLR opportunities to optimise its production capacity.
Brand Positioning and Market Strategy
The Lepas brand—a coined name vaguely referencing leopards—is positioned as a mass-market offering with a strong emphasis on "fun" and accessibility. This distinguishes it from Chery's other brand, Jaecoo, which has been described by some industry observers as a "Range Rover clone" but available at a substantially lower price point. The focus on younger families and the European market suggests Chery is tailoring its product lineup to specific demographic and regional preferences.
Research and Development Investment
This brand launch follows closely on the heels of Chery's recent announcement to establish a research and development headquarters in Liverpool dedicated to commercial vehicles. This investment in UK-based R&D highlights Chery's commitment to deepening its roots in the British automotive ecosystem, potentially paving the way for more advanced engineering and design activities locally.
Historical Context and Market Evolution
Chery has been the largest exporter of vehicles from China for 23 consecutive years, though its historical focus on cheaper models for markets such as the Middle East limited its initial penetration into Europe. The global shift towards electric vehicles, coupled with substantial government subsidies for Chinese manufacturers, has enabled companies like Chery, BYD, and SAIC (owner of MG) to challenge established European and Japanese carmakers more effectively. The introduction of Lepas represents the latest phase in this strategic evolution.
As the UK automotive landscape continues to transform with increasing electrification and international competition, Chery's multi-brand approach and potential manufacturing investments could significantly influence market dynamics, consumer choice, and industrial policy in the coming years.
