Chery's UK R&D Centre Marks Next Step in Car Manufacturing Push 2026

Chery, the Chinese automaker behind Jaecoo and Omoda, is taking its next step in the UK with a new research and development centre. This move signals a long-term commitment to the British market, as the company also plans to begin local manufacturing by 2027. With sales surging, Chery aims to solidify its presence and compete directly with traditional European carmakers.

Chery's Strategic Expansion in the UK

The new R&D facility, set to open in late autumn, will be located at UTAC Millbrook in Bedfordshire. This site offers over 70km of purpose-built test tracks, allowing Chery to fine-tune its vehicles for UK roads. The company will also use the facility to develop self-driving technology and artificial intelligence, positioning itself at the forefront of automotive innovation.

Gary Lan, CEO of Chery UK, stated: "We waited over 20 years for the right time to enter this market, and our ambition has always gone much further than simply bringing vehicles here." This sentiment underscores the brand's dedication to becoming a major player in the UK automotive sector.

Market Performance and Growth

Chery's sales have grown rapidly. In July, the Chery, Omoda, and Jaecoo brands accounted for nearly 8% of UK market share, up from 3% the previous year. The Jaecoo 7, often dubbed the "Temu Range Rover" for its affordability and tech features, became the UK's top-selling model in March. This success highlights the demand for value-driven electric and hybrid vehicles.

Local Manufacturing and Partnerships

Chery has signed a deal with Nissan to produce cars at its Sunderland plant, marking the first mass-market Chinese car production in Britain. This partnership is expected to begin in 2027, further integrating Chery into the UK's industrial landscape. The move will reduce import costs and enhance supply chain efficiency.

Impact on the Automotive Industry

Chinese manufacturers like Chery are reshaping the global car industry by offering competitive pricing and advanced technology. Their ability to undercut European rivals in electrified vehicle production is a direct result of state support and economies of scale. This shift pressures traditional automakers to innovate and adapt.

• Chery's R&D centre will focus on UK-specific vehicle tuning and autonomous driving.
• The Sunderland plant will create jobs and boost local manufacturing.
• Market share growth indicates strong consumer acceptance of Chinese brands.
• Future plans include expanding the electric vehicle lineup.

Future Outlook

Chery's investment in the UK signals confidence in the market's long-term potential. With the R&D centre and manufacturing partnership, the company is poised to become a significant player. As the automotive industry transitions to electric and autonomous vehicles, Chery's strategic moves will likely influence the competitive dynamics for years to come.

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