Chinese automaker Chery, one of China’s largest vehicle manufacturers, is considering Serbia as a potential location for its second European factory, Serbian Minister of Economy Adrijana Mesarović announced during her visit to Shanghai. She confirmed that Chery President Yin Tongyue will soon visit Serbia to continue discussions on the possible investment.
Founded in 1997, Chery is China’s largest vehicle exporter for 22 consecutive years. In 2024, it sold 2.6 million vehicles, marking a 38% increase from 2023. Of that, 1.1 million were sold outside China—ten times more than in 2020—driven by the company’s rapid global expansion and growing electric vehicle (EV) portfolio.
As the European Union tightens trade measures to protect its own car industry from cheaper and increasingly advanced Chinese competition, Chery and other major Chinese automakers are accelerating plans to localize production in Europe. Chery already opened its first European factory in Spain in late 2024 with an investment of €400 million and plans to produce at least three new models by 2026. Alongside Serbia, Germany and the UK are also being considered for further expansion.
Chinese automakers have recently surpassed Korean producers in European sales, selling more than 500,000 vehicles in September 2025, and are increasingly competing with established brands such as Hyundai and Kia. China also overtook Japan as the world’s largest car exporter.
Analysts say that a Chery factory in Serbia would bring major benefits to the local economy, complementing the existing Stellantis (Fiat) plant in Kragujevac, which produces the Fiat Grande Panda. The arrival of Chery would make Serbia home to two major export-oriented car factories, boosting employment and attracting local component suppliers.
Union leader Željko Veselinović from the United Trade Unions of Serbia “Sloga” said the investment could create several thousand new jobs, both in the factory itself and in the supporting auto-parts sector. “Chery’s presence would allow the company to reach the European market faster and more efficiently, while Serbia would gain significant industrial and financial benefits,” he stated.
