China’s Chery Automobile to Open UK Research and Development Centre This Year

Chery Automobile, a prominent Chinese car manufacturer, plans to open a new research and development centre in the United Kingdom later this year. The facility, situated at the UTAC Millbrook vehicle development and testing site in Bedfordshire, is scheduled for a late autumn 2026 launch.

This strategic move comes as Chinese car brands see increasing demand in the UK market, with their share of new car registrations rising to approximately 15% in the first half of this year, up from 10% for all of last year. This growth is largely attributed to competitive pricing.

Tailoring To British Drivers

The initial focus of Chery’s new Bedfordshire centre will be on developing vehicle chassis and advanced driver-assistance systems specifically tailored for British drivers. Future plans include expanding into autonomous driving technologies and artificial intelligence. Gary Lan, CEO of Chery International UK, highlighted that UTAC Millbrook will enable the company to translate UK customer insights into product development, covering aspects from ride and steering to active safety systems.

This R&D investment follows Chery’s recent agreement with Japanese carmaker Nissan to explore manufacturing its UK passenger vehicles at Nissan’s Sunderland facility in Britain. The establishment of local R&D capabilities suggests a deeper commitment to the market beyond just sales. Chinese brands such as SAIC Motor’s MG, BYD, and Chery’s own JAECOO and OMODA are currently among the leading Chinese marques in the UK.

Regional Context And Future Growth

The expansion into the UK market with both manufacturing considerations and a dedicated R&D hub reflects a growing trend among Asian automotive players to localize key functions beyond their home markets. This approach allows companies to better understand and adapt to regional consumer preferences and regulatory environments, fostering stronger brand loyalty and market penetration. For RetailNews Asia readers, this signifies the increasing global ambition and technical sophistication of Chinese automakers, potentially setting new benchmarks for competition and innovation in Western markets, and impacting how Asian brands are perceived globally. This strategic investment in R&D indicates a long-term engineering commitment, as noted by Kirsty Andrew, vice president, UTAC UK.