Economics

Chinese car giant to set up UK research centre

The site will be used to help tailor cars to "the UK's distinct driving conditions", the company says.

Chery Automobile, a prominent Chinese car manufacturer and parent company to global brands like Omoda, is establishing a new research center in Bedfordshire later this year, signaling an increased presence in the UK.

The Research and Development (R&D) Centre of Excellence will be situated at UTAC Millbrook, a substantial testing facility frequently utilized by the automotive industry and the Ministry of Defence. This move, which the company characterizes as a "major expansion" of its global R&D operations, coincides with its exploration of manufacturing vehicles in the UK.

Gary Lan, chief executive of Chery International UK, stated, "The establishment of our UK R&D Centre of Excellence is the next step in our long-term plan for the UK."

Kirsty Andrew, vice president of UTAC UK, expressed approval of Chery Automobile's decision to use the Millbrook site. She noted, "Creating a stand-alone engineering centre here means Chery Automobile can develop and validate vehicles against the particular demands of UK roads and UK drivers, with direct access to our engineering expertise and testing environments throughout that process."

The company is currently collaborating with Nissan on plans that could lead to its cars being produced under contract at the Japanese manufacturer's Sunderland plant. A non-binding memorandum of understanding was signed by the two companies in June. Nissan is assessing the feasibility of using a spare production line at the factory to build cars for Chery.

While Chery is a significant car manufacturer in China with a substantial international footprint, it is a relatively new entrant to the UK market. Its Omoda and Jaecoo brands were introduced in the UK in late 2024 and early 2025, respectively. The company began selling cars under its own name a year ago and is in the process of launching a fourth brand, Lepas.

Similar to its Chinese competitor BYD, Chery has rapidly made an impact on the market. The group sold 53,600 cars in the UK last year and is projected to surpass that figure in 2026. Despite being dismissed by some as a "Temu Range Rover," its Jaecoo 7 SUV was the third best-selling car in the country during the six months ending in June.

UTAC Millbrook, located approximately eight miles (12.9km) south of Bedford, will be instrumental in adapting cars sold in the UK to what the company describes as "the UK's distinct driving conditions." The center will also contribute to the group's broader global research and is expected to expand into areas such as autonomous driving and artificial intelligence over time.

Lan commented, "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. Local capability is increasingly important."

The company has not disclosed the specific investment for the new facility or the number of jobs it expects to create.

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