Chery spins off Omoda into sub-brand amid local expansion

Chery is strengthening its presence in Australia by spinning off Omoda into a separate sub-brand, aligning with its global strategy and positioning it alongside sibling brand, Jaecoo. The move aims to further refine Chery’s brand identity in Australia as it embarks upon a significant expansion of its local line-up.

To better understand the implications of the strategic shift, carsales spoke with Chery Motor Australia’s Chief Commercial Officer, Roy Munoz, and Head of PR, Tim Kreiger, at the recent launch of the Jaecoo J7 AWD and PHEV.

Since its Australian debut in 2023, the Chery Omoda 5 has gained significant traction in the small SUV segment, selling over 12,000 units thanks to its distinctive design and budget-friendly pricing. Mr Munoz said the model will continue to be part of Chery’s lineup but with a rebranding twist.

“[With] The [Omoda] 5 we haven’t decided what happens on the Omoda side, but on the Chery side the current Chery Omoda 5 will be rebranded Chery C5 and will continue to be sold in the Chery network,” he said.

Meanwhile, the Omoda 7 mid-size SUV and Omoda 9 large SUV that are currently on sale overseas are expected to join the local lineup.

We’re told the separation of the Omoda brand from Chery allows Omoda to establish a distinct identity targeting a younger and sportier demographic. Jaecoo then caters to a more sophisticated adventure audience, leaving Chery as a family-orientated brand.

This strategy has already rolled out in overseas markets such as the UK and South Africa, where Omoda, Jaecoo and Chery are treated as separate brands.

Mr Munoz believes that while it’s a global strategy, the team can still execute it in a way that makes sense for local customers.

“There is a certain uniqueness to Australia, right?” he said. “I think we’re a sophisticated market. We’ve probably got the most brands per capita, so there is an element where you have to localise your approach.

“But again, I think [it’s about] building value in your product and demonstrating that value from step one. Step two would be how you enhance the customer experience, or that ownership experience.”

In addition to brand repositioning, Chery is set to simplify its own vehicle naming conventions later this year. The company acknowledges that its current system, which includes long and inconsistent name variants such as Tiggo 7 Pro and Tiggo 8 Pro Max, can be confusing for consumers.

In response to feedback, Chery is planning a major overhaul of its model naming structure as part of a broader product refresh this year.

Mr Krieger said the local line-up was set to expand significantly.

 “Watch this space,” he said. “There’ll be a big Chery new model rollout come the middle of the year. PHEVs on [Tiggo] 7 and [Tiggo] 8 and HEV on [Tiggo] 4. As part of that, there will be some changes to naming conventions.”

Chery has set its sights on breaking into Australia’s top 10 automotive brands. The company aims to balance sales volume with profitability to ensure long-term success. With the introduction of Jaecoo and the strategic repositioning of Omoda, Mr Munoz said Chery was determined to strengthen its foothold in the competitive SUV segment.

“The goal is to be in that top 10,” he said. “It’s a good position for any automotive OEM to be in and certainly creates more of a sustainable business case. As a group or even individually as brands would be ideal.

“Chery is on a great sustainable growth path at the moment; we just need to launch Jaecoo and make sure it follows the same trajectory.”

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