Japanese auto giant to manufacture vehicles for Chinese brand

(ECNS) -- Japan's Nissan Motor recently announced that it signed a non-binding memorandum of understanding with Chery International UK, a subsidiary of China's Chery Automobile, paving the way for contract manufacturing of Chery vehicles at Line 1 of Nissan's Sunderland plant in the UK starting from April 2027.

The deal marks the first time a major Japanese automaker has agreed to manufacture vehicles for a Chinese brand in a core European market.

Behind the cross-border manufacturing partnership lie both the production-capacity challenges facing traditional foreign automakers and the rapid rise of Chinese carmakers on the global stage.

According to export data released by the China Association of Automobile Manufacturers last Wednesday, China's cumulative vehicle exports totaled 4.059 million units in the first five months of 2026, a surge of 63% from a year earlier. During the same period, NEVs accounted for 1.833 million units, representing more than 45% of total exports and serving as the primary engine of growth for China's automotive expansion overseas.

The development suggests that the long-standing structure of the global automotive industry, characterized by "Western technology and Eastern markets", is beginning to loosen. In its place, a new model of cooperation, driven by "Eastern technology and Western manufacturing capacity," is emerging as a key trend in the next phase of global automotive industry transformation.

(By Gong Weiwei)