Chinese car maker Chery considers UK expansion with R&D base

Chinese car maker Chery is considering expanding its UK operation to include a design or research and development centre, according to UK boss Victor Zhang.

Zhang previously said that the maker of Omoda and Jaecoo cars is looking at a new European production facility, and that the UK could be in the mix. Now he’s confirmed that the Chinese company could be looking to take advantage of the deep pool of automotive design and research and development talent in the UK.

The Independent was granted an exclusive UK drive of the all-electric Omoda E5, where we caught up with UK country manager Zhang to talk about Omoda, upmarket brand Jaecoo and parent company Chery’s further plans for the UK.

Zhang and his team have worked hard to set up a dealer network for Omoda and Jaecoo, with 90 retailers expected to be open across the country by the end of the year and another ten likely to be agreed.

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A parts logistic network to support the dealers has been created with DHL, while the company has also worked hard with the insurance industry’s Thatcham Research centre to ensure that repair methods have been properly logged with the aim of lower insurance premiums for owners – something other Chinese car makers have been slow to do.

Asked if Chery had plans to expand the UK operation with a research and development base, like Chinese brand Nio has near Oxford, Zhang said, “We have one in Frankfurt, so I think currently they have already covered the whole of Europe including the UK. But we are also actually considering to have a local facility, possibly like a design center or R&D center in the UK. So yes, this is something we are also considering.”

To help avoid EU tariffs on Chinese-made electric vehicles, Chery has already agreed a manufacturing deal in Spain. But Zhang didn’t rule out Chery building a car plant in the UK. “For manufacturing, to be honest, I think it’s still a little bit long topic,” he said. “I mean it would take longer because it’s not a small decision. It involves a lot of considerations. But I think everything is possible.

“We are still evaluating and choosing and comparing and considering because, to be honest, we just started here. When we really start the sales, we really get more and more local knowledge. I think it will help us make a better decision.”

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Omoda and Jaecoo’s range of SUVs will be heading into UK dealers at pace over the coming years, with the first of the more upmarket Jaecoo models, the J7 with its innovative plug-in hybrid system, likely to be on sale by January.

A second, range-topping Omoda 9 with plug-in hybrid power is also expected to land at the start of 2025, possibly as a seven-seater, too. An Omoda 7 is expected in the summer of next year, with a small, Nissan Juke-sized Omoda 3 with electric power going on sale some time in 2026.

The Jaecoo J7 will be joined by a smaller J5 model in the middle of next year, also available with pure electric power, with J3 and J9 also being considered, according to Zhang.

Omoda has shaken up the market with its Nissan Qashqai-sized 5 model starting at £25,000, undercutting the Nissan by over £5,000 while offering more standard equipment, too. And although Jaecoo will be positioned above Omoda, Zhang is keen to stress that it will still offer great value.

“We don’t want to be so exaggerated [that people think] this is a car they cannot afford,” said Zhang. “So it’s a balance. We are now doing a lot of internal discussion about the exact price positioning and also the market is changing. A lot of new players are coming, so you have to keep updating.”