Chery won't rule out cutting Omoda from Australia if sales don't improve
The Chinese giant says the market will decide which models survive as battles for buyers intensifyThe News
Chery says every model in its expanding Australian portfolio must earn its place, with the company prepared to reposition – or even delete – underperforming nameplates if buyers fail to embrace them.
The Key Details
- Jaecoo is now one of Australia's fastest-growing new brands
- Chery also sits inside the top 10
- Omoda sales slower than its two relatives
- Chery says it won't keep importing cars Australians aren't buying
- Omoda's expansion continues with the Omoda 4 due next year
The Finer Details
Omoda Jaecoo chief commercial officer Roy Muñoz has said that no vehicle is guaranteed a permanent place in the company's local lineup, with customer demand ultimately deciding which models survive.
"If that product line's not selling, it's either priced or positioned wrong or it's just not right for the market. Ultimately, the customer, the market will decide."
Rather than persisting with slow-selling products, Muñoz said Chery would first reassess pricing and positioning before making a tougher decision.
"Do we reposition it... or do we just delete it altogether?
"If we've tried that with another model line and it's still not moving, it's probably at that point where, is it even worth bringing that car in?"
His comments come as Chery's Australian showroom becomes increasingly crowded.
Family SUV-buyers can now choose between the Chery Tiggo 9, Jaecoo J8 SHS and Omoda 9 SHS – three flagship plug-in hybrids sharing much of the same mechanical package – while the upcoming Omoda 4 will target many of the same buyers as the Jaecoo J5.
Despite the overlap, Muñoz insists that's by design. Rather than worrying about one Chery brand stealing sales from another, he believes the bigger priority is stopping buyers from walking into a rival dealership.
"We might lose a Jaecoo sale to an Omoda, but I'd rather lose the Jaecoo sale to an Omoda than a competitor."
He also acknowledged the strategy only works if each brand gives customers a compelling reason to choose it.
"That's our job; to introduce products that are distinctive enough to live on their own."
The Road Ahead
Whether they are distinctive enough, however, will ultimately be decided by Australian buyers.
Omoda's Australian expansion isn't over, with the Omoda 4 still due to arrive as the brand broadens its portfolio.
But Muñoz has made one thing clear: in Chery's increasingly crowded stable of brands, no model is guaranteed a long-term future.
Related: Omoda Jaecoo: “Not the Lexus of Chery”
Related: Even Jaecoo didn't expect the J5 to sell this well
Related: Omoda 4 unveiled as new entry-level SUV
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