Full Breakdown
Chery Expands UK Footprint with New R&D Centre at UTAC Millbrook
8/20/2026, 6:12:10 AM
Core Announcement
On August 19, 2026, Chinese automaker Chery Automobile disclosed plans to open a dedicated Research and Development Centre of Excellence at the UTAC Millbrook proving ground in Bedfordshire. The facility is slated to begin operations in late autumn 2026 and will initially focus on chassis dynamics, steering feel and Advanced Driver-Assistance Systems (Advanced Driver Assistance Systems (ADAS)) tuned for UK-specific driving conditions.
Market Growth and Strategic Context
Chery’s rapid ascent in the British market underpins the investment. According to the Society of Motor Manufacturers and Traders (SMMT), the Chery, Omoda and Jaecoo marques captured nearly 8 % of UK market share in July 2026, up from 3 % a year earlier. The Jaecoo 7 SUV became the country’s top-selling model in March 2026, while overall UK sales reached 53,600 units in 2025 and are projected to exceed that figure in 2026.
Globally, Chery reported 276,820 vehicles sold in July 2026, including 202,533 exports, representing a 70 % year-on-year increase and marking the first time a Chinese automaker exported over 200,000 units in a single month. Chinese-owned brands accounted for about 15 % of new-car registrations in the UK during the first half of 2026, highlighting a broader shift in the market.
Engineering Focus and Facilities
UTAC Millbrook provides more than 70 km (43 miles) of purpose-built test tracks, including the Hill Route, Alpine Circuit and specialised durability surfaces. The centre will later expand into autonomous-driving and artificial-intelligence research.
Official Statements & Responses
Both executives highlighted the intention to recruit local engineering talent, though neither disclosed specific investment amounts or projected job numbers.
Manufacturing Outlook
Parallel to the R&D investment, Chery is exploring UK production through a non-binding memorandum of understanding signed with Nissan in June 2026. The agreement contemplates contract assembly of Chery-branded passenger cars at Nissan’s Sunderland plant, potentially using an idle production line from fiscal 2027. This would represent the first large-scale local production by a Chinese car brand in the UK.
Data & Statistics
- UK market share (July 2026): ~8 % (SMMT)
- Jaecoo 7 sales: >53,000 units, primarily plug-in-hybrid
- 2025 UK sales: 53,600 units (Chery)
- Global July 2026 sales: 276,820 vehicles; exports: 202,533 (70 % YoY rise)
- Chinese brand share of UK registrations (H1 2026): ~15 % (industry data cited by Reuters)
What’s Next
- Late autumn 2026: Opening of the UTAC Millbrook R&D Centre of Excellence.
- Fiscal 2027 (contingent): Potential start of contract manufacturing at Nissan’s Sunderland facility, subject to further negotiations.
The establishment of a dedicated engineering hub signals Chery’s intent to transition from an import-focused model to a localized, right-hand-drive development platform that could be replicated in other RHD markets such as Australia and South Africa.
