Chery to Invest Hundreds of Millions of Euros in Europe, Boosting Omoda and Jaecoo
Chery Automobile plans to invest hundreds of millions of euros to promote its Omoda and Jaecoo brands in Europe, focusing initially on gasoline vehicles and later expanding to hybrids and electric models.
pcauto · 2024-09-18
Kevin Cheng, Chery’s Italian CEO of Omoda and Jaecoo brands told the media recently that the company is planning to promote its Omoda and Jaecoo brands in EU, focusing on the gasoline models at first.
The company is said to spend hundreds of millions of euros to promote the two brand, to make sure that in the following 3 years, Omoda and Jaecoo become popular models in the EU region.
Initial Market Focus
According to Kevin Cheng, Chery will launch gasoline models, and then gradually launch its hybrid and pure electric models.
Firstly, Chery will launch gasoline models of Omoda and Jaecoo brands in Europe this year, by selling the models in Spain, Italy, Poland, and the UK.
Then, Chery will introduce the two brands into more countries later next year, along with the two brands’ hybrid and pure electric models.
Enhancing Brand Position
The Omoda and Jaecoo brands is aiming to benchmark against other established players in EU, such as Kia, Hyundai, Nissan. SO the initial launch models will be the gasoline models. Up till now, the exact sales data of the two brands in Europe is undisclosed, while according to the global market data, Omoda and Jaecoo models have sold nearly 150,000 units from January to August this year, almost 18,000 units per month.
Navigating Tariff Challenges
The gasoline models launch strategy may also caused by another challenge, the European Union’s extra tariffs imposed on Chinese electric vehicles. According to the public information, Chery is facing an extra tariff of 20.7% on EV models.
Establishing a Manufacturing Footprint
Furthermore, in order to avoid high tariffs, establishing a manufacturing plant locally is another way, too. It is reported that the carmaker has already acquired a plant in Spain recently. This is Chery’s first manufacturing base in EU, and is planning to start manufacturing at the end of 2024. Additionally, Chery is evaluating some potential locations for its second European plant as well.
