The company is currently working with Nissan on plans that could see its cars being made under contract at the Japanese manufacturer’s plant in Sunderland.
The two companies signed a non-binding memorandum of understanding in June.
Nissan is looking at whether it could use a spare production line at the factory to build cars on Chery’s behalf.
Chery is a major car manufacturer in China, with a significant international presence. However, it is a relative newcomer to the UK market.
Its Omoda and Jaecoo brands were launched here in late 2024 and early 2025.
It began selling cars under its own name a year ago and is in the process of introducing a fourth brand, Lepas.
Like its Chinese rival BYD, it has made a rapid impact on the market.
The group sold 53,600 cars here last year and is on course to exceed that figure in 2026.
Despite being derided in some quarters as a “Temu Range Rover”, its Jaecoo 7 SUV was the third best-selling car in the country in the six months to the end of June.
UTAC Millbrook, which is about eight miles (12.9km) south of Bedford, will be used to help tailor cars sold here to what the company describes as “the UK’s distinct driving conditions”.
It will also feed into the group’s wider global research. Over time, it is expected to expand into disciplines such as autonomous driving and artificial intelligence.
Lan 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.
“Local capability is increasingly important.”
The company has not specified how much it would invest in the new facility, or how many jobs may be created.
