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Some fruits can only be harvested late. Six years ago, Chinese automaker Chery wanted to cross European borders with the Exeed TX SUV. Nothing came of it. But in 2024 the time will finally come: Chery is ready to launch in Europe with a new strategy and two brands.
Spain starts in January, Germany in mid-summer, and Switzerland probably shortly after. A new start in a total of 27 European countries in just twelve months – Jochen Tüting (49) is expected to take on this mammoth task. After 13 years at Ford, the German joined Chery in China in 2013 and has been head of the European branch in Raunheim (D) since 2018. “At the development center here we adapt models to European tastes and local regulations,” he says.
Chinese majors such as Landwind and Brilliance once had problems, particularly with crash standards: “But that’s long gone.” Chinese standards will not differ much from those valid in Europe. Additionally, German TÜV even provides on-site consultancy to manufacturers in China. “Our cars meet European standards with minimal adjustments,” says Tüting. But: “There are only two ways to drive in China: going straight in traffic jams or on the highway at a constant speed of 120 km/h at all times.” Therefore, the models need to be adjusted to be more active, and he is currently dealing with this issue with a team of 50 people.
Chery is launching two brands simultaneously with Omoda and Jaecoo; The first is young and sporty, the second is more for angled off-road driving. But both start as SUVs: the Omoda 5 comes with a 186 hp (137 kW) turbo petrol engine and will later be electric; A plug-in hybrid will be added to the same internal combustion engine later with the Jaecoo 7. But are other new providers in China relying solely on electric vehicles? “We are not a start-up,” Tüting emphasizes. Chery has been producing petrol engines since it started 26 years ago, and charging infrastructure in markets like Spain that are important to the brand is still very modest: “Switzerland may be far ahead in terms of charging network, but we’re keeping an eye on Europe as a whole.”
Chery is also cautiously approaching sales through local dealers rather than online sales. “We want to build trust,” says Tüting, and this can only be done with presence. The group is doing well with this strategy so far. While Chinese rival BYD is the world’s largest electric vehicle maker, Chery is China’s auto export champion: Nearly a third of the 1.2 million cars produced in 2022 were delivered beyond the country’s borders.
In major markets, Chery’s own sales companies handle imports; In small markets such as Switzerland, Tüting wants to cooperate with local importers. He emphasizes that discussions are still ongoing, but looking at the map of the 80 markets where Chery is currently represented, it appears that there are already ties with Astara, Switzerland’s number three importer, in Chile, Bolivia and Peru, for example.
Omoda 5 and Jaecoo 7 should impress with design, technology and quality rather than budget prices. It looks like the Skoda description. But Tüting also points to Kia and Hyundai; Chery can achieve what two South Korean brands have achieved, but only faster. Base prices of around 28,000 francs for the Omoda 5 and around 30,000 francs for the Jaecoo 7 are still expected to help.
Source: Blick
I’m Ella Sammie, author specializing in the Technology sector. I have been writing for 24 Instatnt News since 2020, and am passionate about staying up to date with the latest developments in this ever-changing industry.
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