Chery Takes Aim At Europe With SUVs From Three Car Brands

A growing number of Chinese automakers, including BYD, Xpeng, and Nio, are making inroads into Europe. Chery, the eighth largest automaker in China by sales volume in 2022, is the latest to do so.
Rising domestic market competition and a desire for global expansion are the driving forces behind this decision. All of the major European markets, including Germany, Britain, Spain, Italy, and France, will see the introduction of Chery's Omoda and Jaecoo brands, Reuters reported.

The company plans to introduce three SUV models for each brand by the end of 2025. The cars will be a mix of hybrid, fully electric, and gas-powered models to serve the needs of various European market segments. By early 2019, all-electric Exlantix, the third brand on the company's launch list, will only offer fully electric models by early 2025.

Chery announced a collaboration with China's Huawei Technologies and Anhui Jianghuai Automobile Group earlier this year to create electric vehicles (EVs). It shares the same EV platform as the Exlantix brand but will concentrate on the Chinese market. Chery will introduce the Omada 5 compact crossover with a combustion engine in Spain later this year. Germany will offer both a fossil fuel-powered and fully electric version starting in April. Chery thinks the Omada 5 will be very competitively priced at around 30,000 euros.

The carmaker is optimistic about expanding to Europe, but it is aware of the difficulties it will face. Low brand recognition and expensive imports are a couple of them. Despite these obstacles, the company is thinking about buying an assembly plant that is currently in operation from a venerable manufacturer or building its own. Ten assembly facilities are already run by Chery outside of China.

Chery hopes to double its 2022 exports of 450,000 vehicles in 2023, bringing its overall sales close to two million vehicles. Along with its expansion into Europe, Chery intends to sell 15,000 units more of the Omoda 5 in the UK in 2019. The SUV, which is scheduled to go on sale at the end of 2023, might outsell reputable rivals like the Skoda Karoq, Honda HR-V, and Citroen C3 Aircross.

To build a network of more than 50 showrooms in the UK, Omoda is currently looking for franchised dealers. Beginning in 2024, these showrooms will be prepared to introduce the brand to prospective car buyers. Omoda seeks to provide competitive goods with cutting-edge features, such as Advanced Driver Assistance Systems (ADAS), at a reasonable cost.

Omoda intends to introduce the C9, a large SUV, in the UK by the end of 2024. The C3, a smaller SUV, will follow in 2025. Both models will only be offered as fully electric cars. Chery's strategic action demonstrates its dedication to innovation and a production and design philosophy that is future-oriented.