Full Breakdown
Chery Expands UK Footprint with New R&D Centre at UTAC Millbrook
8/20/2026, 1:06:19 AM
Core Announcement
On August 19, 2026, Chinese automaker Chery Automobile disclosed plans to open a dedicated research and development centre at the UTAC Millbrook proving ground in Bedfordshire, England. The facility will begin operations in late autumn 2026, initially focusing on calibrating chassis dynamics, steering feel and advanced driver-assistance systems for British roads, with later work on autonomous-driving and AI technologies.
Market Surge Fuels Expansion
Chery’s rapid ascent in the United Kingdom underpins the investment. According to the Society of Motor Manufacturers and Traders (SMMT), the combined Chery, Omoda and Jaecoo brands captured nearly 8 % of UK new-car registrations in July 2026, up from about 3 % a year earlier. The Jaecoo 7 SUV was the country’s top-selling model in March 2026, driven largely by its plug-in-hybrid variant. Reuters and the Financial Times note that Chinese-owned brands now account for about 15 % of new-car registrations in the first half of 2026, a rise from roughly 10 % in 2025.
Strategic Context and Manufacturing Outlook
Chery’s UK strategy extends beyond engineering. In June 2026 the company signed a non-binding memorandum of understanding (MoU) with Nissan to explore contract assembly of Chery-branded passenger cars at Nissan’s Sunderland plant. The proposal envisions production on “Line One” beginning in fiscal 2027, contingent on further negotiations. Analysts note that the UK’s post-Brexit tariff regime offers lower duties on Chinese-built vehicles than the EU’s countervailing duties, making Britain a higher-margin entry point for Chery.
Data & Statistics
- UK market share (July 2026): ~8 % (SMMT)
- Growth from previous year: 3 % -> 8 % (SMMT)
- Chinese-brand share of new registrations (H1 2026): ~15 % (Reuters/Financial Times)
- Jaecoo 7 sales: >53 000 units since launch, majority plug-in hybrids
- Global July 2026 exports: 202 533 vehicles, a 70 % year-on-year increase
Official Statements & Responses
He highlighted the centre’s role in adapting vehicles to local driving conditions and signaled intent to recruit local engineering talent, though no specific investment or job-creation figures were disclosed.
Verbatim Quotes
- “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.” — Gary Lan, international UK chief
- “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, CEO
- “UTAC Millbrook allows us to turn UK customer insight into product development, from ride and steering to active safety systems,” — Gary Lan, international UK chief
Conflicting Reports & Gaps
Sources differ slightly on the exact market-share range for Chery’s brands in July 2026, with some reporting 7 %–8 % and others citing nearly 8 %. No public data have been released regarding the capital outlay for the Millbrook centre or the projected number of engineering jobs it will generate. The MoU with Nissan remains non-binding, and details of any eventual manufacturing agreement have not been confirmed.
What’s Next
- Late autumn 2026: Commencement of R&D operations at UTAC Millbrook.
- Fiscal 2027 (subject to agreement): Potential start of contract assembly at Nissan’s Sunderland plant.
The R&D centre marks a concrete step in Chery’s broader ambition to localise engineering—and possibly production—within the United Kingdom, positioning the Chinese automaker as a growing competitor to established European and Japanese manufacturers.
