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Chery to establish UK research center

Created at 19 Aug · 12:56 PM1 source↑ Market-relevant
IN SHORT

Chinese automaker Chery plans to open a new research and development center in Bedfordshire, England, by late autumn. The facility will focus on adapting vehicles for UK roads and exploring self-driving car technology, marking a significant expansion into the British market.

Key Numbers

8%UK market share for Chery, Omoda, Jaecoo brands in July
3%UK market share for Chery, Omoda, Jaecoo brands last year
20 yearsChery's waiting period to enter the UK market
70 kmof test tracks at UTAC Millbrook

Who's Involved

Chery
Chinese automaker expanding in the UK
Gary Lan
Chief executive of Chery's UK business
Kirsty Andrew
Vice-president of UTAC UK
Nissan
Partnering with Chery for UK manufacturing
Society of Motor Manufacturers and Traders
Source of UK automotive market share data

↳ Why This Matters

Chery's investment in a UK R&D center and manufacturing plans signal a significant push by Chinese automakers into the European market, potentially reshaping competition and supply chains within the global automotive industry.

Key facts

  • Chinese automaker Chery is establishing a new research and development center in the UK.
  • The facility will be located at UTAC Millbrook in Bedfordshire.
  • The center is set to open in late autumn.
  • Chery aims to adapt vehicles for UK roads and explore self-driving technology.
  • Chery's brands (Chery, Omoda, Jaecoo, Lepas) have seen rapid sales growth in the UK.
  • The company has a manufacturing agreement with Nissan for its Sunderland plant.

Chinese automaker Chery is set to expand its presence in the United Kingdom with the establishment of a new research and development center in Bedfordshire. The facility, located at UTAC Millbrook, is scheduled to open in late autumn and will focus on adapting Chery's vehicles, including its Jaecoo and Omoda brands, for the specific demands of UK roads. This move is part of Chery's long-term strategy for the British market, which has seen significant growth in sales, with its brands capturing nearly 8% of market share in July, up from 3% the previous year. The company also plans to leverage the R&D center for future work on self-driving cars and artificial intelligence. Chery has already secured a deal with Nissan to manufacture its vehicles at Nissan's Sunderland plant, potentially marking the first mass-market Chinese car production in Britain from 2027. Gary Lan, CEO of Chery's UK business, stated that the company waited over 20 years for the right market entry, with ambitions extending beyond mere vehicle importation. Kirsty Andrew, VP of UTAC UK, highlighted the commitment to UK engineering and vehicle development. The arrival of Chinese manufacturers like Chery is intensifying pressure on established European carmakers, attributed to factors such as state subsidies, lower labor costs, and dominance in battery production.

Frequently asked questions

The Jaecoo 7 hybrid electric vehicle is nicknamed the "Temu Range Rover" due to its low price point and advanced technological features, drawing a comparison to the popular online marketplace.

Chery, along with its Omoda and Jaecoo brands, accounted for nearly 8% of the UK market share in July, a substantial increase from 3% the previous year.

Chery has signed a deal with Nissan to build its cars at Nissan's Sunderland plant, with mass production expected to begin from 2027.

What Happens Next

01Chery plans to recruit local talent and create engineering jobs.
02Chery's cars will be manufactured at Nissan's Sunderland plant from 2027.

How It Developed

Chery announced plans for a new UK research and development center.
The R&D site will be located at UTAC Millbrook in Bedfordshire.
The facility will allow Chery to fine-tune vehicles for UK roads.
Future work at the center will include self-driving cars and AI.
Chery's UK market share has grown significantly, reaching nearly 8% in July.
The company has a deal with Nissan to build cars in Sunderland from 2027.

Sources

T1
Chinese carmaker Chery to set up UK research centreThe Guardian

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