Jaguar Land Rover (JLR) is facing a new challenge from its Chinese partner, Chery Automobile Co., which is set to bring its premium Jaecoo brand to the UK market. Chery plans to compete directly with JLR’s Range Rover line by offering more affordable sport utility vehicles (SUVs). The Jaecoo 7, which will debut on UK roads early next year, starts at £29,435 ($36,910) for the gasoline version and is expected to be of higher quality and more affordable than certain Range Rover models, including the £44,000 Evoque, according to Chery’s UK head, Victor Zhang.
Zhang highlighted the advantages of the Jaecoo 7 over the Evoque, saying, “If you look at the Evoque — this kind of size — I’d say we’re much better in terms of dimensions, power, interior, technology, everything.” This new push from Chery comes as Jaguar Land Rover grapples with its brand transformation efforts, which have recently attracted criticism.
JLR isn’t alone in facing competition from a Chinese partner; Volkswagen AG is also under pressure from Xpeng Inc., which launched its electric vehicles (EVs) in Germany earlier this year. Similarly, Stellantis NV’s brands, such as Fiat and Citroën, compete with Leapmotor in European markets like Italy and France. Chery’s expansion into the UK follows JLR’s defensive stance over its teaser ad for the rebranding of Jaguar as an all-electric brand aimed at younger customers.
Despite the looming competition and potential EU tariffs on Chinese-made EVs, Zhang expressed confidence in Chery’s position, stating, “The UK is very important but all the other European countries are in the same pace. We are not worried about these tariffs.” While Chery primarily manufactures in China, the company has invested in production capacity in Spain through a local partner.
The Jaecoo 7 will be available as a plug-in hybrid or gasoline-powered vehicle but will not have a fully electric version. The plug-in hybrid variant starts at just over £35,000. In addition to Jaecoo, Chery launched its more affordable Omoda brand in the UK in August, offering both electric and gasoline-powered SUVs. Omoda registered around 1,000 sales in its first month, a promising sign of Chery’s growing influence in the UK market.
