Chery - A Chinese Powerhouse Enters the German Market

ℹ️ The article was first published on LinkedIn on 17.10.2023.

Welcome to the third edition of China EV Pulse.

This week holds a unique significance. As I pen these initial lines, I'm currently in China, visiting CHERY in Wuhu. I'm here to gain insights into their strategies for the European market, with a particular focus on Germany.

Following this, I'll share some key details about the three brands and the vehicles they intend to introduce to the German market, as well as their future prospects. Stay tuned to upcoming editions of China EV Pulse for more in-depth coverage on this topic. But for now, let's dive in.

Established in 1997 and headquartered in Wuhu, Chery Automobile Co. has carved a niche for itself as a premier car exporter from China. Now, the company is setting its sights on Europe, specifically targeting the German market with three dynamic brands: Omoda, Jaecoo, and EXLANTiX.

These brands, encompassing combustion engines, plug-in hybrids, and all-electric vehicles, are slated for a 2024 launch in Germany.

Omoda is set to spearhead Cherys German debut. "The OMODA 5 has already made waves in diverse markets across continents," remarks Charlie Zhang, Executive Vice President of Chery Automobile International. With a presence in countries like Spain, Mexico, Israel, Turkey, Kuwait, Australia, and New Zealand, Omoda is no stranger to international acclaim. Zhang exudes confidence about their German market strategy but acknowledges the challenges, noting that Germany represents "one of the global pinnacles of automotive excellence."

Mirroring BMWs philosophy, two of the three brands will champion technological versatility in propulsion. "Our portfolio will encompass both combustion and battery-electric vehicles, catering to the diverse German demand," Zhang adds. The gasoline-powered Omoda 5 will be the brands German forerunner in spring 2024, followed by the all-electric Omoda E5 in the subsequent quarter.

Omoda targets the tech-savvy, design-centric, and lifestyle-driven demographic, epitomizing the "personalized Smart Car" concept. The brand name is emblematic: "O" symbolizes oxygen, denoting rejuvenation, while "moda" is reminiscent of "modern", reflecting contemporary, chic lifestyles. A comprehensive survey involving over 10,000 participants shaped the brand's vision, evident in its pioneering models.

Cherys European blueprint isn't just about Omodas rapid expansion but also encompasses the launch of sister brands like Jaecco and the all-electric EXLANTiX. While Jaecoo is SUV-centric, EXLANTiX is poised to redefine luxury electric mobility.

Jaecoos strategy doesn't currently include a pure electric model. Instead, it emphasizes combustion engines and hybrids, blending spaciousness with luxury. Its design draws parallels with the Land Rover Evoque, and the Jaecoo 7 is set to rival stalwarts like the BMW X2- 4 series, VW Tiguan, and Audi Q4 e-tron by late 2024.

Yet, Jaecoos vehicles are distinct, exuding a robust, masculine, and commanding aura. Their unmistakable design ensures they stand out, characterized by clean lines and minimalist elegance. A highlight is the hybrids impressive range, rumored to exceed 100 km, coupled with rapid charging capabilities. The larger Jaecoo 8, reminiscent of the Range Rover, is on the horizon, with pure electric iterations being a future possibility.

While the other brands offer propulsion choices, EXLANTiX is unapologetically electric for Europe. Known as EXEED in China, the brand underwent a name transformation for Europe to avoid potential overlaps with established models. EXLANTiX promises a luxurious, intelligent driving experience.

Boasting potential ranges exceeding 700 km and leveraging an 800-Volt system, rapid charging is a given. The first model will be the EXLANTiX ES, an electric sedan, which boasts a sleek design and eye-catching LED elements at the front.

Following the sedan will be an electric SUV, the EXLANTiX ET. From the rear, it resembles the Porsche Macan but has a longer wheelbase and unique design when viewed from the side. Both models are expected to hit the roads in China by the end of the year. In Germany, the sedan is anticipated in the 3rd quarter of 2024, with the SUV following in 2025.

To ensure their vehicles resonate with the exacting standards of the German and European markets, Chery has established a Research and Engineering Center in Raunheim, near Frankfurt. With a current strength of 50, the team is expected to expand to 80 in the near future.

Cherys ambitions are lofty. By 2030, the company aims to globally sell 1.4 million vehicles under the OMODA | JAECOO banners. Collaborations with industry giants like Huawei, CATL, and Lux-share Precision underpin this vision. With a 2022 revenue of approximately 28 billion US dollars, Chery anticipates a surge to 42 billion US dollars in 2023.

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Sebastian | China EV Pulse