Chinese automaker Chery plans UK R&D centre amid rapid sales growth

The Chinese carmaker behind the irreverently nicknamed “Temu Range Rover” is plotting further UK expansion with a major research and development centre in England.

Chery, which makes the Jaecoo and Omoda car brands, said the launch of a new R&D site was “the next step in our long-term plan” for Britain as it also moves towards manufacturing its cars in the UK.

Chery’s sales are growing at breakneck pace in Britain. In July, the Chery, Omoda and Jaecoo brands accounted for nearly 8% of UK market share, up from 3% last year, according to the Society of Motor Manufacturers and Traders.

The China-built Jaecoo 7, known as the “Temu Range Rover” for its low price and techy add-ons, became the top-selling model in the UK in March, but Chery currently has to bring it in from abroad.

The company is part-owned by the Chinese state and has already signed a deal with Nissan to build its cars at its Sunderland plant, in a move that would begin mass-market Chinese car production in Britain for the first time from 2027.

The new R&D facility would open in late autumn, Chery said on Wednesday. Gary Lan, the chief executive of its 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.”

An existing vehicle testing centre in Bedfordshire that is used by engineering and motorsport companies – as well as the Ministry of Defence – will be the site of Chery’s new R&D facility.

The centre, called UTAC Millbrook, will give Chery access to more than 70km (43 miles) of purpose-built test tracks for it to fine-tune its cars for UK roads. Further down the line it will also use the site to work on self-driving cars and artificial intelligence.

Chinese manufacturers’ arrival as a major force in the car industry has put enormous pressure on traditional European rivals. Chinese companies have been able to undercut European companies in building electrified cars because of state subsidies, lower labour costs and the country’s dominance in the battery industry.

Chery also launched its Lepas brand – its fourth in the UK – last February, aimed at younger families in the European market.

Kirsty Andrew, the 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.”

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.