Chinese Automaker Chery Accelerates European Expansion with Italian Launch

 

Chery Auto, a major Chinese automaker, is set to make significant inroads into the European market, with Italy being its second European destination after Spain. The company plans to launch its Omoda and Jaecoo brands in Italy by the third quarter of 2024. This aggressive expansion also includes introducing three SUV models under each brand by the end of 2025, catering to various European regions with a mix of fuel options, including gasoline, electric, and plug-in hybrid variants.

Chery is one of several Chinese automakers capitalizing on the growing demand for electric vehicles in Europe. The company aims to offer competitive pricing, with the gasoline-powered Omoda 5 starting at a comparable price of 29,900 euros in Spain. To ensure a smooth customer experience, Chery will establish a network of local dealerships, similar to its compatriot BYD. Building a strong after-sales service network is also a top priority.

This expansion comes amidst some tension between China and the European Union regarding potential subsidies for Chinese electric vehicle manufacturers. However, Chery is taking a long-term approach, even considering establishing a manufacturing plant in Europe, with Italy and Spain being potential locations. The initial Italian launch will feature gasoline versions of the Omoda 5 crossover and the larger Jaecoo 7 SUV. Later in 2024, a fully-electric Omoda 5 and a plug-in hybrid Jaecoo 7 are expected to join the lineup. Chery is negotiating dedicated space in dealerships across Italy, with a target of reaching around 60 by the end of the year. This significant investment in dealerships highlights Chery's commitment to providing a comprehensive sales and service experience for European customers.

This European push by Chery signifies a growing trend of Chinese automakers making their mark in the global market, particularly in the electric vehicle segment. Their competitive pricing and focus on establishing strong dealer networks could disrupt the European automotive landscape in the coming years.