This year marks the launch of Omoda and Jaecoo in Europe,
initially concentrating on petrol engine vehicles. Following the commencement
of sales in Spain, Italy, Poland, and the United Kingdom, the company plans to
expand into additional countries in the upcoming months, alongside introducing
hybrid and fully electric models.
Kevin Cheng, the CEO of Omoda and Jaecoo for Italy,
mentioned in an interview that the brands are using established competitors
such as Kia, Hyundai, Nissan, and Volkswagen as benchmarks for their strategy.
He noted that it took Kia nearly two decades to build a
reputable brand in Europe. “Our aim is to achieve similar recognition within
three years,” he stated.
While the specifics of their marketing and brand development
investments in Europe remain confidential, Cheng emphasized that the financial
commitment is substantial, amounting to billions of euros.
Although Omoda and Jaecoo have not disclosed cumulative
sales figures for Europe, they reported global sales of nearly 150,000 vehicles
from January to August.
The European Union is considering an additional 20.7% tariff
on Chery vehicles as part of its duty framework for Chinese-made electric
vehicles (EVs). “This presents a challenge,” Cheng acknowledged, noting that
Chery benefits from lower tariffs compared to some other Chinese manufacturers,
such as SAIC Motor.
Chery, recognized as China’s largest automaker by export
volume, is anticipated to commence production with a local partner at its
newly-acquired factory in Barcelona, Spain, by the end of this year, marking
its inaugural manufacturing site in Europe.
The company is also exploring possibilities for a second
production facility in the region.
Meanwhile, the Italian government is engaging in discussions
with Chery and other Chinese automotive firms, including Dongfeng Motor, to
attract manufacturing investments to Italy.
Chery is also considering Eastern Europe as a potential
location for a second facility, according to a source who spoke to Reuters.