Chery, the Chinese carmaker behind the Jaecoo and Omoda brands, is to open a research and development centre in Bedfordshire, describing the move as “the next step in our long-term plan” for Britain.
The company said on Wednesday that the facility would open in late autumn at UTAC Millbrook, an existing vehicle testing centre used by engineering and motorsport companies as well as the Ministry of Defence. The site offers more than 70km (43 miles) of purpose-built test tracks, which Chery will use to fine-tune its cars for UK roads. Further down the line it intends to use the site to work on self-driving cars and artificial intelligence.
Gary Lan, chief executive of Chery’s UK business, said: “We waited over 20 years for the right time to enter this market, and our ambition has always gone much further than simply bringing vehicles here.”
The announcement comes as Chery’s sales grow at a rapid pace in Britain. In July, the Chery, Omoda and Jaecoo brands together accounted for nearly 8 per cent of the UK market, up from 3 per cent a year earlier, according to the Society of Motor Manufacturers and Traders. The China-built Jaecoo 7, nicknamed the “Temu Range Rover” for its low price and technology-heavy specification, became the UK’s top-selling model in March.
All of those cars are currently imported. Chery, which is part-owned by the Chinese state, has signed a deal with Nissan to build its vehicles at the Sunderland plant, which would mark the start of mass-market Chinese car production in Britain from 2027.
Chery also launched Lepas, its fourth brand in the UK, last February, aimed at younger families in the European market.
Kirsty Andrew, vice-president of UTAC UK, said the new R&D centre was “a significant commitment to engineering and vehicle development in the UK”.
She added: “Creating a stand-alone engineering centre here means Chery Automobile can develop and validate vehicles against the particular demands of UK roads and UK drivers, with direct access to our engineering expertise and testing environments throughout that process.”
UTAC Millbrook is midway between London and Birmingham and specialises in testing electric vehicles, battery systems and automated and connected vehicle technology.
Chinese manufacturers’ arrival as a major force in the car industry has put pressure on traditional European rivals. Chinese companies have been able to undercut European competitors in building electrified cars because of state subsidies, lower labour costs and China’s dominance of the battery industry.
Chery said it eventually planned to recruit local talent and create engineering jobs in the area, but did not say how much it would invest in the site or how many jobs would be created.
