Finance
Chery to start production in Spain this year after delays
Published by Global Banking & Finance Review®
Posted on February 6, 2026
2 min readLast updated: February 6, 2026
Quick Summary
Chery plans to begin vehicle production in Spain by 2026 after delays. The Barcelona plant, a joint venture with Ebro, will produce up to 150,000 vehicles annually by 2029.
Chery to Launch Vehicle Production in Spain This Year After Delays
Chery's Production Plans in Spain
By Victoria Waldersee and Joan Faus
Investment and Local Impact
MADRID/BARCELONA, Feb 6 (Reuters) - Chinese carmaker Chery will start production of its own vehicles in Spain "as soon as possible" this year, a top executive said on Friday, after successive delays to what will be its first factory in Europe.
Production Timeline and Models
The confirmation that production will slide later into 2026 follows an earlier delay to the fourth quarter of 2025 with commercial reasons cited, including European Union tariffs on Chinese-made electric vehicles (EVs).
Export Strategies and Future Goals
Originally Chery had planned to start production of its vehicles in Barcelona in 2024. Chinese carmakers have gained market share in Spain amid an aggressive price war by EV makers worldwide.
Local authorities have hailed the Chery investment - located in a former plant of Japanese carmaker Nissan - as a positive example of closer commercial ties between Spain and China and a reflection of Spain's potential as Europe's second biggest car maker.
The Barcelona plant is a joint venture between Spanish carmaker Ebro, which is already manufacturing cars using a shared production platform and shared technology, and Chery. Ebro had ceased sales in 1987 until its relaunch in 2024.
Chery's executive vice president and chief executive for the European Union region, Zhu Shaodong, told Reuters the Chinese carmaker was still "revving up" its plans for Barcelona but that he was confident that production would start this year.
Asked in which quarter it would start, he declined to specify but said it would be "as soon as possible".
Chery said in 2024 it would manufacture its SUV Omoda 5 model, both in its EV and combustion engine versions, in Barcelona and would later also produce its Jaecoo 7 model there.
Zhu spoke on the sidelines of an event in Madrid, in which he said Chery plans to use the Barcelona plant for exports to Latin America.
The Chery-Ebro venture said in 2024 it would aim to produce up to 150,000 vehicles a year by 2029 and make the Barcelona plant one of Chery's main export facilities.
(Reporting by Victoria Waldersee, writing by Joan Faus, editing by Aislinn Laing and Susan Fenton)
Key Takeaways
- •Chery will start vehicle production in Spain in 2026.
- •The Barcelona plant is a joint venture with Ebro.
- •Chery plans to produce the Omoda 5 and Jaecoo 7 models.
- •The plant aims for 150,000 vehicles annually by 2029.
- •Chery will use the plant for exports to Latin America.
Frequently Asked Questions about Chery to start production in Spain this year after delays
1What is vehicle production?
Vehicle production refers to the process of manufacturing automobiles, including the assembly of parts and components to create finished vehicles ready for sale.
2What are EU tariffs?
EU tariffs are taxes imposed by the European Union on imported goods, which can affect the pricing and competitiveness of products from outside the EU.
3What is a joint venture?
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing profits and risks.
4What is an export strategy?
An export strategy is a plan developed by a company to sell its products or services in foreign markets, aiming to increase international sales and market presence.
5What is an investment impact?
Investment impact refers to the economic effects that a financial investment has on a local economy, including job creation, infrastructure development, and business growth.
