China’s Chery to open UK R&D centre as sales surge

Summary

Chinese automaker Chery Automobile plans to establish a research and development centre at UTAC Millbrook in Bedfordshire, with the facility expected to open in late autumn 2026. The centre will initially focus on adapting Chery vehicles to British roads and customers, including work on vehicle chassis, ride and handling, steering and driver-assistance systems.

The move comes as Chinese-owned automotive brands increase their presence in the UK, accounting for about 15% of new car registrations, according to industry data cited by Reuters. Chery’s Omoda and Jaecoo brands have been among the fastest-growing entrants.

The R&D investment also follows a non-binding memorandum of understanding with Nissan to explore contract manufacturing of Chery International UK passenger vehicles at Nissan’s Sunderland plant from fiscal 2027.

LONDON, August 19, 2026 — China’s Chery Automobile is expanding its presence in the UK with plans to establish a dedicated research and development centre at the UTAC Millbrook vehicle testing facility in Bedfordshire, strengthening its local engineering capabilities as Chinese automotive brands rapidly gain market share.

The centre is expected to begin operations in late autumn 2026 and will initially focus on adapting Chery vehicles to British driving conditions and customer preferences. Areas of work will include vehicle chassis development, ride and handling, steering and advanced driver-assistance systems. Chery plans to broaden the centre’s capabilities over time to cover additional automotive technologies, including autonomous driving and artificial intelligence.

The move represents a shift from relying primarily on vehicles developed for overseas markets towards greater localisation of engineering and product development for the UK.

Localising vehicles for British roads

The UTAC Millbrook facility will give Chery access to a specialist vehicle testing environment in the UK, allowing its engineers to study how its vehicles perform under local road and driving conditions.

The initial engineering programme will concentrate on:

• Ride and handling: Calibrating suspension and vehicle dynamics for British roads and customer expectations.
• Steering: Refining steering response and feedback for UK driving conditions.
• Driver assistance: Developing and calibrating advanced driver-assistance systems for local requirements.
• Future technologies: Chery intends to expand the centre’s scope over time into areas including autonomous driving and automotive AI.

UTAC’s UK vice president Kirsty Andrew described the relationship as part of a longer-term engineering collaboration with Chery, while Chery International UK CEO Gary Lan highlighted the importance of converting UK customer feedback into product development.

Chinese brands gain ground in the UK

Chery’s R&D investment comes as Chinese-owned automotive brands continue to increase their share of the British new-car market.

Chinese brands accounted for about 15% of UK new-car registrations, according to industry data cited by Reuters, compared with about 10% in 2025. The leading Chinese-owned brands include SAIC Motor’s MG, BYD, and Chery’s Omoda and Jaecoo marques.

Chery’s UK expansion has largely been driven by the Omoda and Jaecoo brands. The two brands recorded 9,754 registrations in June 2026 alone, giving them a 4.58% monthly market share, according to their UK operation citing SMMT data.

More broadly, Chery’s group of brands has been gaining ground rapidly. Reuters and the Financial Times reported that Chery’s UK market share reached nearly 8% in July, compared with about 3% a year earlier.

The company is also expanding its brand portfolio in Europe, including the newer Lepas marque, as it seeks to establish a wider presence across the region.

Nissan talks open a route to UK production

Chery’s engineering investment follows a separate agreement with Nissan that could eventually give the Chinese automaker a UK manufacturing base.

In June, Nissan and Chery International UK signed a non-binding memorandum of understanding to explore contract manufacturing at Nissan’s Sunderland plant. Under the proposal, Nissan would aim to manufacture Chery International UK passenger vehicles on Production Line One from fiscal 2027.

The proposal emerged after Nissan announced plans to consolidate production of its Qashqai, Juke and Leaf models onto a single production line at Sunderland. The second line was therefore being considered for alternative production opportunities and improved plant utilisation.

The arrangement remains subject to further discussions. The Sunderland plant would continue to be owned by Nissan and its workforce would remain employed by Nissan under the current proposal.

If completed, the deal would give Chery access to UK manufacturing capacity while allowing Nissan to make greater use of its Sunderland facility.

Building a broader UK automotive footprint

Taken together, the Millbrook R&D centre and potential Sunderland manufacturing arrangement would give Chery two important elements of a more localised UK operation: engineering capability and potential domestic production.

The strategy comes as Chinese automakers increasingly use local engineering, manufacturing partnerships and expanding dealership networks to compete with established European, Japanese and Korean manufacturers.

Chinese brands have been able to gain market share partly through competitively priced electric and plug-in hybrid vehicles, while established manufacturers face pressure from high production costs, slower market growth and increasing competition.

Why this matters

• UK engineering localisation: The Millbrook R&D centre will allow Chery to adapt vehicles more closely to British road conditions and customer preferences.
• Chinese brands gain market share: Chinese-owned brands now account for about 15% of UK new-car registrations, highlighting a significant shift in the competitive landscape.
• Potential UK production: The Nissan-Chery MoU could eventually bring Chery vehicle production to Sunderland, although the arrangement remains non-binding.
• Pressure on established automakers: The rapid growth of Chinese brands is increasing competitive pressure on traditional UK and European manufacturers.
• Broader European strategy: Chery is combining product localisation, multiple brands and potential local manufacturing as it expands across Europe.

FAQs

Q1: Where will Chery’s UK research and development centre be located?

The centre will be established at UTAC Millbrook in Bedfordshire, England, a specialist vehicle testing and proving facility.

Q2: When is the Chery R&D centre expected to open?

Chery plans to open the facility in late autumn 2026.

Q3: What will Chery’s UK engineering centre focus on?

Initial work will focus on vehicle chassis, ride and handling, steering and advanced driver-assistance systems. Chery plans to expand the centre’s capabilities over time into areas such as autonomous driving and AI.

Q4: Will Chery manufacture cars in the UK?

Potentially. Chery and Nissan have signed a non-binding MoU to explore contract manufacturing of Chery International UK passenger vehicles at Nissan’s Sunderland plant. Nissan aims to begin production on Line One in fiscal 2027 if the agreement proceeds.

Q5: What is the current market share of Chinese car brands in the UK?

Chinese-owned brands account for about 15% of UK new-car registrations, according to industry data cited by Reuters.

Q6: How quickly is Chery growing in the UK?

Chery’s group of brands has expanded rapidly, with Reuters and the Financial Times reporting that its UK market share reached nearly 8% in July 2026, compared with about 3% a year earlier.