Chinese carmaker Chery to set up UK research centre

Chinese car manufacturer Chery is set to establish a research and development centre in Bedfordshire, UK, according to a recent announcement. The facility, which will be located at the existing vehicle testing centre UTAC Millbrook, marks the company's next step in its long-term plan for expansion in the UK. Chery's sales have seen a significant increase in the UK, with the brands Jaecoo, Omoda, and Jaecoo accounting for nearly 8% of the market share in July, up from 3% last year.

The "Temu Range Rover," a low-cost and feature-rich model, has become the top-selling vehicle in the UK since March. Currently, Chery must import the Jaecoo 7 from China, but the company plans to manufacture its vehicles in the UK, beginning mass-market production from 2027 in collaboration with Nissan.

Chery's chief executive in the UK, Gary Lan, expressed his company's ambition beyond merely bringing vehicles to the UK market. The new R&D centre will provide access to over 70km of purpose-built test tracks, allowing Chery to fine-tune its cars for UK roads, as well as explore self-driving cars and artificial intelligence in the future.

The arrival of Chinese manufacturers in the UK automotive industry has put pressure on traditional European rivals, as Chinese companies can produce electric vehicles at lower costs due to state subsidies, lower labour expenses, and China's dominance in the battery industry. Chery recently launched its Lepas brand, targeting younger families in the European market.

UTAC UK's vice-president, Kirsty Andrew, emphasized the significance of the new R&D centre in supporting engineering and vehicle development in the UK, with plans to create local jobs in the area.