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Chery International, China’s largest car exporter, has set its sights on becoming the UK’s third‑largest new‑car group — and it says a planned boost to local R&D will be central to that push. The move comes as the group’s market share has surged this year, driven by strong demand for its Jaecoo and Omoda models.
Rapid gains on a competitive market
In just 12 months Chery’s combined presence in the UK has grown sharply: the group jumped from roughly 2% market share to nearly 7%, a rise largely credited to the success of the Jaecoo and Omoda line‑ups. Jaecoo’s 7 SUV has been among the top sellers in 2026, helping the newcomer establish real momentum.
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Year‑to‑date, the combined Chery‑Omoda‑Jaecoo operation sits as the UK’s fifth biggest car group with 46,090 registrations. To reach a podium spot it must close the gap with Hyundai‑Kia and BMW‑MINI, which currently report roughly 74,000 and 61,000 registrations respectively.
| Position | Group | Registrations (YTD) |
|---|---|---|
| 1 | Volkswagen Group | Leader |
| 2 | Stellantis | Second |
| 3 | Hyundai‑Kia | ~74,000 |
| 4 | BMW‑MINI | ~61,000 |
| 5 | Chery‑Omoda‑Jaecoo | 46,090 |
Turning sales growth into local engineering clout
Gary Lan, head of Chery’s UK operation, told industry delegates at a recent conference that the company’s strategy now moves beyond market entry to investment in local engineering. An R&D announcement is expected shortly, he said, with a focus on adapting models specifically for British buyers.
The UK team has already expanded quickly — headcount rising from about 40 people to 150 — and further hires are planned to support the engineering push. Lan has indicated the company will seek academic partners to strengthen technical capability and tap local talent pools.
- Phase 1: Market entry and brand roll‑out (Jaecoo, Omoda, Chery)
- Phase 2: Establish UK R&D to tailor vehicles to local tastes
- Phase 3: Grow dealer network and aftersales performance
- Phase 4: Explore manufacturing in the UK
Bringing engineering closer to customers is framed as essential. Lan stressed that building reputation, delivering strong residual values and ensuring dealer profitability are as important as raw sales figures.
Production prospects and the Sunderland question
Longer term, Chery has publicly flagged an aspiration to move into UK production. That ambition has fuelled speculation about potential tie‑ups with existing manufacturers — most notably Nissan at its Sunderland plant.
Nissan has said it is open to partners that would raise volumes at Sunderland, where consolidation of several models onto a single production line has left capacity available. Company executives have described the site as cost‑competitive and productive, but short on the volumes needed to run at full efficiency.
Discussions reported between Nissan, Chery and Chinese partners reflect wider supply‑chain thinking: could EVs developed or built in China be adapted for European sale, or even assembled locally to serve regional markets? Nissan is assessing new electric models for Europe, and any deal would hinge on whether the economics make sense for all parties.
What this means for the UK industry and buyers
The immediate impact is tangible: more competition in the mainstream segments, and stronger pressure on incumbent brands to defend pricing, residuals and aftersales. For buyers, the benefit may be greater choice and value; for the manufacturing base, a potential influx of investment and jobs if local production moves ahead.
However, major uncertainties remain. Converting retail success into sustainable manufacturing commitments requires capital, local supply‑chain capacity and regulatory alignment — none of which are guaranteed.
Still, Chery’s fast ascent this year is a clear signal: Chinese OEMs are moving beyond exporting finished cars and are increasingly willing to invest in local engineering and, possibly, production. That shift could reshape the UK market over the next few years.
Key terms: Chery, Jaecoo, Omoda, R&D, Sunderland, Nissan.
