Italian prime minister Giorgia Meloni is wooing Chinese electric carmaker Chery Automobiles amid an ongoing war with national champion Stellantis.

Ms Meloni’s government has been holding talks with the state-owned group, China’s third largest carmaker, about setting up a European production plant as the country pushes to hit ambitious production targets.

Chinese producers BYD and Great Wall Motor have also been sounded out about the plan, with Chery emerging as the leading candidate to open a new factory, Reuters reported.

Chery focuses on electric vehicles (EVs) and has previously indicated plans to open a plant in the UK during the next decade.

Italy is aiming to increase annual vehicle production from 800,000 vehicles per year to 1.3 million. Its government wants Stellantis, the only carmaker left in Italy, to help hit the target. The group has been urged to increase production to 1 million vehicles per year from 750,000.

However, this has led to tensions between the two sides. Earlier this year Ms Meloni attacked Stellantis, saying a car being sold as an “Italian jewel” must be made in the country.

Stellantis is controlled by Italy’s Agnelli family, which founded Fiat, but Meloni loyalists fear too much car production is moving overseas.

The company has faced criticism from Ms Meloni for ditching its Italian roots and listing shares in New York.

Luring Chery to Italy could help build another 300,000 cars, helping the government hit the 1.3 million target.

Adolfo Urso, Italy’s industry minister, has previously held talks with Tesla and three Chinese car makers about setting up a new plant.