Chinese automaker Chery is set to make a significant entry into major European markets, including Germany, Britain, Spain, Italy, and France. The company plans to introduce SUV models from three of its car brands over the next two years as part of its European expansion strategy. Chery, which ranked as China’s eighth-largest automaker by sales volume in 2022, is joining the growing list of Chinese automakers aiming to tap into the European market. This expansion comes as competition within China intensifies, and domestic growth begins to slow down.
Jochen Tueting, Managing Director of Chery Europe, revealed that the automaker will launch its Omoda and Jaecoo brands in the aforementioned European markets. By the end of 2025, each brand will introduce three SUV models, catering to various parts of Europe with a mix of full-electric, fossil-fuel, and plug-in hybrid cars. Electric vehicles are expected to see higher demand in Western European countries compared to Southern markets. Chery’s third brand, Exlantix, will focus exclusively on full-electric models, with a debut expected by early 2025.
Chery’s partnership with Huawei and Anhui Jianghuai Automobile Group to develop electric vehicles uses the same EV platform as the Exlantix brand but is primarily focused on the Chinese market. Chery is set to launch sales of its Omada 5 compact crossover in Spain later this year, followed by Germany in April. The Omada 5 will be available in both fossil-fuel and full-electric versions, with a competitive price point of around 30,000 euros.
While the European Commission is investigating potential tariffs on Chinese EV imports, Chery remains optimistic about its prospects in Europe. If its brands perform well, the automaker may consider establishing an assembly plant in Europe as early as 2024. Chery is evaluating options for the assembly plant, including acquiring an existing facility from a legacy manufacturer or building its own. The company currently operates ten assembly plants outside of China.
In 2023, Chery aims to double its car exports compared to 2022, bringing its total unit sales for the year close to 2 million cars.