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Chery will open an R&D center in the United Kingdom in the fall of 2026. The next step is local car production with Nissan.

Chery will open an R&D center in the United Kingdom in the fall of 2026. The next step is local car production with Nissan.

Chery will open a research and development center in Bedfordshire, England, at UTAC Millbrook in the fall of 2026. Initially, the focus will be on adapting vehicles for British roads, with autonomous driving systems and AI coming later. For Europeans, this is a more significant signal than further announcements about expansion, as the company is beginning to build local infrastructure rather than just importing ready-made cars from China.

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Chery Is No Longer Just an Importer in the UK

The new R&D center will be located in Bedfordshire, a place well-known to the automotive and motorsport industries. It is UTAC Millbrook, a testing and engineering facility where one can not only rent offices but also test vehicles under real conditions on test tracks. This is not a random location choice.

Initially, the team needs to focus on calibrating the cars for British road conditions and driving styles. It sounds technical, but it actually has practical significance. The suspension, steering system, ADAS, or regenerative braking are tuned differently for China compared to Britain, with its roads, weather, and left-hand traffic.

Later on, the scope of work will include autonomous driving and artificial intelligence. However, caution is needed here. There is usually a long way to go between “we will develop AI” and a fully functional system that can operate reliably on European roads. For now, the most straightforward fact is this: Chery is investing in local engineers and aims to build its own expertise on site.

According to the company’s statements, the facility is also meant to create high-skilled jobs and recruit local talent in the long term. This is another aspect of establishing operations locally, rather than a one-time PR stunt.

The next step is production in Sunderland

The second aspect is even more interesting, as research is only half the equation. In June, Chery signed a non-binding memorandum with Nissan regarding the possible production of passenger cars at the Sunderland plant in the UK.

If the plan goes through, Chery models are set to begin production starting next year, or according to another timeline, in fiscal year 2027. The difference in terminology stems more from how timelines are calculated than from a change in plans, but until there’s a final contract and specific models confirmed, it’s better not to treat this as a certainty.

Nissan’s factory will use the underutilized Line One, an existing production line that is not operating at full capacity today. For Chery, it’s a quick way to achieve local production without building a plant from scratch. For Nissan, it’s a means to make better use of its capacity in Sunderland. A simple deal.

If this model goes into production, it will be the first large-scale manufacturing of a Chinese car brand in the UK. And this is significant, as it changes the role of Chinese manufacturers from Europe’s perspective. First, they came with cars. Then they built sales networks. Now they are adding local R&D and assembly.

Omoda and Jaecoo drive growth, with market share rising rapidly

Chery is growing very quickly in the UK. According to SMMT data, total registrations for Chery, Omoda, and Jaecoo reached 12,117 vehicles in July, representing a 220 percent year-on-year increase.

The group’s share in the British market rose to 7.7 percent, compared to around 2.7-3 percent the previous year. In other words, over 12 months, Chery along with its sub-brands nearly tripled its market share. This is no longer a niche market.

In practice, Omoda and Jaecoo are currently the main drivers of growth, as these brands are more visible in European markets and compete strongly in popular segments. While the Chery brand is important at the corporate level, it is the sub-brands that often matter more to everyday customers.

The company also announced in February the launch of Lepas, a brand designed for European markets. If this plan goes ahead, Britain will become a market for Chery’s four brands: Chery, Omoda, Jaecoo, and Lepas. An ambitious goal—though it may be too broad. European customers appreciate choice but dislike chaos in product ranges and naming conventions.

Chery’s Exports Set Records, But Europe Gets More Than Just Containers

Chery’s performance in the UK fits into a broader picture. In July 2026, the group sold 276,820 cars globally, of which 202,533 were exports. This represents a 70.1 percent year-on-year increase in exports.

This achievement is significant because Chery became the first Chinese manufacturer to exceed 200,000 cars exported in a single month. The scale is impressive, but what’s even more important is what the company does with this scale going forward. Exports alone provide volume, while localization offers a chance to establish a stronger foothold in Europe.

This is where it gets to the core. Opening an R&D center in the UK isn’t a major event in itself. An office and a test track are not yet a factory. But combined with planned production in Sunderland and an expanding market share, it forms a coherent model: sales, local vehicle customization, and then on-site assembly.

From a European perspective, it’s also a way to mitigate some political and trade risks. When a Chinese brand has a local team, local partners, and part of its production closer to customers, it’s easier for them to engage with the market as a locally present manufacturer rather than just an exporter. This doesn’t solve everything, but it changes the outlook.

For the Polish reader, the conclusion is simple. If Chery truly establishes a solid engineering and production base in Europe, the chances of the group expanding its presence to other countries, including ours, increase. The United Kingdom itself is currently a testing ground, but it doesn’t seem to be a project designed solely for the islands.

In the end, the most interesting question remains: will Chery end up as just another “imported” brand, or will it build a position in Europe similar to that of Japanese and Korean manufacturers from years ago? In your opinion, will local R&D and manufacturing in the UK be enough to make Europeans take Chery more seriously?