Chery considering Australian expansion beyond Chery

The imminent return of China’s Chery to Australia could be just the start of a wider attack on the local market by its parent company, with the Exeed premium brand also under consideration.

Chery, which withdrew from Australia after an unsuccessful partnership with importer Ateco Automotive between 2011 and 2016, relaunches here by early 2023 with the Omoda 5 small SUV.

It quickly plans to expand its line-up with more SUV models and wants to be entrenched in the local top five brands by selling 75,000 vehicles per annum by 2027 with a range of up to 10 orthodox and electrified models.

But Chery Automobile is only one of a number of vehicle brands within the much larger state-owned Chery Holding Group.

Also grouped under the banner of Chery Automobile Company Limited are the Exeed prestige brand and Chery New Energy, as well as Cowin Auto and Qoros in which it owns minority stakes, plus a joint-venture with Jaguar Land Rover.

Included under the Chery Commercial Vehicles Company Limited banner, among others, are the Karry commercial brand and the SUV specialist Jetour.

Chery International executive vice-president Charlie Zhang told carsales that models from some of these brands could be rebadged as Chery models in Australia, or they could eventually be launched here in their own right.

Chery International is responsible for the export of the Chery and Exeed brands.

Zhang highlighted the Exeed brand as a logical potential brand to bring to Australia as it also has an export focus and already has a presence in the Middle East and eastern Europe with three SUVs – the full-size VX, medium TXL and smaller LX.

In 2023 it is launching two new battery-electric vehicles on a new EV platform dubbed E0X.

“We will definitely study the market behaviours,” he said.

“So if there is any significant market growth in the premium brands then we would consider for Exeed.

“We have E0X product platforms and the first two models E03 and E0Y. They will be under Exeed brand.

“I believe electric cars will be very popular in Australia, particularly in big cities like Sydney. So definitely we will consider.”

Zhang cautioned that co-opting models from other group brands to be sold as Cherys in Australia would also be considered, but that it had its limitations.

“We will definitely consider that, but again depending on our branding strategy and product portfolio we might introduce into Australia.

“If there is going to be a number of models under the same brands we might consider separation of the brands because eventually we are going to consider more models.

“It makes sense to make a distinct separation for different brands because they really offer different values for different customers.”

Zhang stressed the immediate focus would be on re-establishing Chery in Australia, conceding the brand has a “legacy issue” from its failed first local venture.

“We want to get ourselves very established first in Australia,” he said.

“In the future we will not rule out any possibilities for us.

“So still I think it is so dynamic, depending on how good performance we have with Chery.

“But I think brand is important, but more important is when the new market opportunities emerge we will try and seize it.”

Based in Anhui province, Chery Holdings Group’s core business is automobiles.

But it also has businesses involved in parts and components, services, financial services, intelligent connected vehicles, shipyards and real estate.

The total revenue for the entire group in 2021 was $US25 billion and that is forecast to grow as high as $US35 billion in 2022.

Chery Automobile was the original brand of the group and currently has three model streams: Tiggo SUV, Arrizo passenger car and the Omoda crossover line.

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