Chery Builds UK R&D Hub to Accelerate European Automotive Push

Chinese automotive powerhouse Chery is cementing its foothold in Europe with a bold research‑and‑development push in the United Kingdom.

A High‑Tech Outpost at Millbrook

Chery announced a new R&D facility at the UTAC Millbrook testing centre in Bedfordshire, slated to open in late autumn. The site boasts more than 70 km (43 mi) of purpose‑built tracks, allowing the firm to fine‑tune vehicles for UK road conditions and later host autonomous‑driving and AI projects.

Market Penetration: Sales Surge and Share Gains

■As of July 2026, the Chery, Omoda and Jaecoo brands together captured 8 % of the UK market, up from 3 % a year earlier.

■The Jaecoo 7 topped UK sales charts in March, earning the nickname “Temu Range Rover”.

Production & Supply‑Chain Linkage: Sunderland Deal

The company has signed a partnership with Nissan to manufacture its Chinese‑built models at the Sunderland plant beginning in 2027, marking the first mass‑market Chinese car production line in Britain.

Competitive Ripple Effects: Pressure on European OEMs

■State subsidies and lower labour costs enable Chery to undercut European rivals on price, especially in the electrified‑vehicle segment.

■China’s dominance in battery manufacturing further strengthens the price advantage.

Markets are watching closely as Chery’s UK expansion could redraw the competitive landscape of the European automotive supply chain. The combination of local production and advanced R&D is likely to boost margins for Chery while compelling legacy European manufacturers to accelerate innovation and tighten cost structures.