Chery is in active negotiations over Jaguar Land Rover’s factory in Itatiaia, in Brazil’s Rio de Janeiro state, with a possible agreement expected later in 2026. People familiar with the talks say the outcome may depend on the conclusion of Brazil’s elections. No deal has been confirmed, and Chery has not announced a final decision to establish a Brazilian factory.
JLR stopped building the Discovery Sport and Range Rover Evoque at Itatiaia in June 2026, leaving the plant inactive. The facility opened about ten years ago after an initial investment of more than R$1 billion. It operated using SKD assembly and has installed annual capacity for 24,000 vehicles. The site supports 371 direct jobs; workers are currently undertaking training and safety-related refreshers while awaiting news about the plant’s future.
One scenario under discussion is for Chery to begin assembling Omoda & Jaecoo models there. The companies could also share the site, with Chery contracted to assemble JLR vehicles, as the firms already have a long-running partnership in China, where Chery produces Land Rover models. Chery is also working with JLR on the Freelander sub-brand’s vehicles and is expected to handle their production and global distribution.
In June, Itatiaia’s municipal government met online with Chery representatives about a possible purchase and discussed local tax incentives after the company requested access to them. JLR declined to comment on the negotiations. Chery says investment, location, capacity and timing for any Brazilian operation remain undecided.