Factory importer sets boundary for Chery

author: FutureCar Staff    

Chinese car-maker Chery is making a strong comeback in the Australian market with a factory-owned import operation. The company aims to combine the agility of a start-up with the resources and financial backing of a scale-up. While Chery executives want to differentiate their brand from other Chinese car-makers, they recognize MG, GWM Haval, and BYD as their biggest competitors and are looking to replicate their success.

Chery already has 43 active dealers in Australia, with a target of 50-60 retail sites nationwide. This would give the brand a similar footprint to MG. However, Chery's sales have been lower than MG's, with only a total of Omoda 5s delivered in the first four months compared to MG's average of almost 4600 units per month. Chery aims to increase brand awareness and achieve a happy medium for marketing costs per car.

Chery's deputy marketing director, Andrew Haurissa, acknowledges the upfront investment required to build brand awareness in Australia. He believes that without sales volume, it is challenging to justify the investment. Chery is constantly monitoring the market and competitors' performance to make informed decisions about ongoing investments.

Chery's global product portfolio and pipeline of new models give them the ability to react to the Australian market with agility. They consider themselves both a start-up and a scale-up, having been China's top passenger car exporter for the past 20 years. Mr. Haurissa emphasizes the importance of differentiating themselves from other Chinese competitors and establishing their value proposition.

Chery's Australian operation may have access to vehicles from its upmarket Exeed, mid-market Jaecoo, and youth-oriented iCar sub-brands. Similar to GWM and MG, Chery plans to bring a range of models to Australia, including electric vehicles. Mr. Haurissa states that Chery is still building a profile of its Australian customer base and will have a clearer picture after being in the market for a year.

In the near future, Chery plans to introduce the Tiggo 7 Pro medium SUV and the Tiggo 8 large SUV to the Australian market. They also confirm the availability of battery electric and plug-in hybrid drivetrains, although the models are yet to be determined. The first electrified Chery for the Australian market is likely to be a battery-electric version of the Omoda 5, expected to arrive in the second quarter of next year.

Chery aims to provide customers with technologically advanced cars, considering that many local Chery customers have traded up from cars reaching the end of their warranty periods. The level of technology in cars like the Omoda 5 represents a significant leap for many customers.

FutureCar Staff