Chery launches Paris R&D hub to develop compact EVs

Chery has opened a new R&D center in Paris to develop compact electric cars for Europe under Omoda and Jaecoo brands. Learn what this means for the market.

Chery is moving the development of compact cars closer to European streets — a new R&D center in Paris will serve as a key hub for creating future Omoda and Jaecoo models tailored to urban environments across Europe.

The company is focusing on the B-segment, one of the largest in the European market and a space where competition is especially intense. This is where mass demand is concentrated, making it a critical battleground for automakers. The Paris center is expected to help adapt future vehicles to real-world conditions such as dense urban traffic, strict safety standards, certification requirements, and growing expectations for digital features.

This move carries clear significance for the market. As electric vehicles gain a larger share in Europe, competition in the compact segment is intensifying, and success increasingly depends on how well cars match local expectations. By developing models within Europe, Chery aims to better align its products with regional needs.

The choice of Paris is driven not only by market considerations but also by engineering advantages. The region offers access to testing facilities, certification infrastructure, and specialists experienced with European regulations. This allows regulatory requirements to be integrated earlier in the development process rather than addressed after a vehicle is launched.

The new center will not operate in isolation. It will become part of Chery’s broader European network, which already includes an engineering and design hub in Raunheim, Germany, expanded in 2026, as well as ongoing projects in Spain. Together, these locations form a structure that supports development, adaptation, and preparation for sales and service.

At present, Omoda and Jaecoo models in Europe are positioned in higher segments, including hybrid and petrol SUVs, along with early electric offerings such as the JAECOO E5. Moving into compact urban cars signals the next phase — entry into a more price-sensitive and high-volume segment.

The broader context reinforces the importance of this step. Electric vehicles already hold a meaningful share of the European market, while regulatory measures such as tariffs on Chinese EV imports increase the value of local development. In this environment, having a European R&D presence becomes a strategic advantage.

Within this framework, the Paris center represents more than just a new location. It is a tool for responding faster to market demands and fine-tuning vehicles for European customers — a crucial factor in a segment where pricing, usability, and local relevance determine success.