Chinese carmaker Chery to set up UK research centre
Chery, the Chinese carmaker behind the Jaecoo and Omoda brands, is to open a new research and development centre in Bedfordshire this autumn, marking a further step in its rapid UK expansion. The move comes as Chery's sales surge in Britain, with the company also progressing plans to manufacture cars domestically via a deal with Nissan at its Sunderland plant, underlining the growing competitive pressure Chinese manufacturers are placing on established European carmakers.
The new facility will be based at UTAC Millbrook, an existing vehicle testing site also used by engineering, motorsport firms and the Ministry of Defence, giving Chery access to over 70km of test tracks to adapt its cars for UK roads, with future plans covering self-driving technology and AI. Chery's UK market share rose from 3% to almost 8% between July last year and this year, driven partly by the Jaecoo 7, dubbed the "Temu Range Rover", which became Britain's top-selling model in March despite currently being imported from China. Chery, which is part state-owned, plans to recruit local engineers but has not disclosed investment or job creation figures, with mass-market UK production of its cars due to begin from 2027.
- Chery to open UK R&D centre in Bedfordshire this autumn
- UK market share jumped from 3% to nearly 8% in a year
- Chery to build cars at Nissan's Sunderland plant from 2027
New here? Start with this
Chery is a Chinese carmaker whose brands in Britain include Jaecoo and Omoda. It is part state-owned and has expanded quickly in the UK, where it currently sells cars made in China.
Car research centres develop and test vehicles for particular markets, including how they perform on local roads. Bedfordshire’s Millbrook site has test tracks used by vehicle and engineering companies, as well as the Ministry of Defence.
Chery’s plans sit within a wider shift in the UK car industry, where Chinese manufacturers are competing with established European brands. Its separate arrangement with Nissan could also bring car manufacturing to Sunderland, linking the company’s expansion to jobs and production in Britain.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The investment represents valuable foreign direct investment that will create skilled jobs, bring cutting-edge automotive technology and AI expertise to the UK, and accelerate the country's transition to electric vehicles through competitive pressure. Chery's success reflects genuine consumer preference for quality, affordable vehicles, and their partnership with Nissan demonstrates serious commitment to UK manufacturing from 2027 onwards. Such international competition benefits British consumers through lower prices and greater choice, whilst the R&D centre will anchor high-skilled engineering work in Bedfordshire and contribute to Britain's competitiveness in automotive innovation on the global stage.
The case against
Chery's rapid market share surge from 3% to 8% in just over a year, combined with state ownership and increasingly sophisticated Chinese manufacturing capabilities, raises legitimate concerns about whether the UK's automotive sector can remain competitive and independent. The concentration of production and design decisions in China, even with UK manufacturing from 2027, means profits and strategic control flow overseas, whilst established British and European manufacturers face displacement in their traditional markets. Questions remain about whether a state-backed enterprise with different strategic objectives will operate in the long-term interest of the UK economy, or whether this represents a gradual shift towards Chinese dominance in a critical British industrial sector.