China’s Chery ready for Australian relaunch

Chery Omoda 5 small SUV to target Hyundai Kona and Mazda CX-30

Chery Automobile is just weeks away from its official Australian relaunch – seven years after its last market attempt here – with the release of its first new-generation global model, the 2023 Chery Omoda 5.

However, senior Chery executives have told carsales the Omoda 5 launch may slip back a couple of months from November to January, and that the all-new small SUV is unlikely to undercut the prices of key rivals like the popular MG ZS, GWM-Haval Jolion, Mazda CX-30 and Hyundai Kona.

“I think [we will launch at the] end of this year or January of next year,” said the executive vice-president of Chery Australia, Andy Zhang. “Once we confirm the timing we will share with you.”

As we reported exclusively in April, the Chinese car-making giant established a factory distribution subsidiary in Australia earlier this year rather than contracting an independent importer as it did previously with Ateco Automotive between 2011 and 2016.

The Chery Australia website went live in July, while the first four Chery prototypes arrived in Sydney for marketing and evaluation purposes in September – the same month Omoda 5 production was scheduled to commence for Australia.

These included two examples of the Omoda 5 and one example each of the larger Tiggo 7 Pro mid-size SUV and the seven-seat Tiggo 8 Pro large SUV, both of which are now confirmed for Australian release in 2023.

A plug-in hybrid version of the inaugural Omoda 5 is expected on sale here by the end of next year, followed by an all-electric version of the small SUV by mid-2024, the latter aimed directly at Australia’s cheapest EVs including the BYD Atto 3, MG ZS EV and Hyundai Kona Electric.

When it launches, the Chery Omoda 5 will be available via a network of about 40 traditional bricks-and-mortar dealerships around the country, with no online sales planned.

“We will start with 40 dealers this year and they’re currently under construction but more and more will join us next year,” confirmed Zhang.

“We will sell only through dealers. We don’t have an online sales model.”

The Chery Omoda 5 will be offered initially with just one powertrain – a front-drive 1.5-litre turbo-petrol unit – across two equipment grades priced from around $30,000.

That would make the Omoda 5 pricier than the top-selling MG ZS (from $22,990 drive-away), as well as the Hyundai Kona (from $26,900 plus on-road costs) and GWM-Haval Jolion ($28,490 drive-away), and lineball with what Chery nominates as its key competitor, the Mazda CX-30 (from $30,090 plus ORCs).

However, Zhang said $30K was just a target price and Chery Australia has been using its social media channels to poll prospective customers about what they think the Omoda 5 1.5T should cost, with five proposed price brackets spanning $28,000 to $39,990 (plus ORCs).

“We have studied the market and in this market our main competitor is Mazda CX-30,” he said.

“This is our first product we will launch in the Australian market so our price will be around $30,000. This is just a target price – the final price won’t be announced until our launch event.”

From launch, the Chery Omoda 5 1.5T will be powered by a 1.5-litre four-cylinder turbo-petrol (TCI) engine matched exclusively to a CVT automatic transmission and producing 115kW/230Nm in China, although that could be detuned to 108kW/210Nm for Australia.

A 145kW/290Nm 1.6-litre four-cylinder turbo-diesel (TDGI) powertrain with all-wheel drive and seven-speed dual-clutch auto will join the range in 2023. The latter is claimed to hit 100km/h in 7.8 seconds and deliver exceptional thermal efficiency of 37.1 per cent.

Chery makes much of the development testing program for its first global model (and the first to wear the Chinese brand’s ‘Art in motion’ design theme), the body of which comprises 78 per cent high-strength steel, 10.7 per cent ultra-high strength steel, 7.6 per cent thermo-forming steel (with maximum strength of 1500MPa) and aluminium alloy (1.46%).

It says the Omoda 5 successfully passed a ‘Tri-extreme’ durability program that included heating, defrosting, defogging and cold-start testing in temperatures as low as -40°C and weather, dust and wind resistance testing in temperatures as high as 50°C, plus testing in altitudes as high as 5200m with air pressure below 60kPa.

“In particular, in the air-conditioning cooling test at 50°C, both the temperatures of Omoda 5’s air-conditioning vents and the head space are significantly lower than those of its competitors during the same period, reaching an outstanding level in its class,” said Chery.

Zhang said Chery would at least match the five-year/unlimited-kilometre warranty now offered by all major brands in Australia including Hyundai.

“I think our warranty will be the same or better than competitors like Hyundai,” he said.

Australian Omoda 5 specifications are yet to be detailed, but the list of equipment available for premium versions of the small SUV in China is extensive and includes dual 12.3-inch instrument and infotainment screens, the latter comprising Apple CarPlay, wireless phone charging, voice assistant, Wi-Fi hotspot, face recognition and satellite navigation.

But even cheaper models come with dual 10.25-inch screens, heated and ventilated front seats, LED headlights, eight-speaker Sony sound system, keyless entry/start, leather seat trim, an electric sunroof, 64-colour ambient lighting, power tailgate and six-way power driver’s seat.

And all variants should come with dual-zone climate control with rear air vents, a heated tilt/reach-adjustable leather steering wheel, heated electric side mirrors and an ‘HD driving recorder’ function.

On the safety front, the Omoda 5 – which is currently being assessed by Euro NCAP and could also be crash tested in Australia – is available with a suite of 16 safety systems that could be standard Down Under.

These include autonomous emergency braking (AEB), adaptive cruise control, lane keep assist, lane change assist, blind spot monitoring, rear cross traffic alert, traffic sign recognition, a 360-degree camera and rear parking sensors.

Following the launch of the Omoda 5, Tiggo 7 and Tiggo 8 by the end of 2023, Chery has plans to release at least one other SUV and even a ute in Australia, where its sales targets are by its own admission ambitious.

“We have ambitious goals of reaching 30,000 unit sales by 2024,” the company said. “Through an established OEM operation and dealer network, we are aiming for 45,000 units until 2026. By 2027, we expect to be top five in the market [with a forecast of 70,000 annual sales].”

Globally, Chery plans to launch 23 ‘New Energy’ products – including five hybrids and 12 EVs – in the next few years.

Notching up more than 10 million vehicle sales globally in 2021, Chery has been China’s largest exporter of passenger cars for the past 19 consecutive years, with exports to more than 80 countries. It sold 965,000 vehicles in 2021 and is on target to increase that to 1.5 million in 2022.

But the Chinese auto giant, which has 10 overseas production plants and five R&D centres in China, Germany, Brazil and the US, only began its right-hand drive export push with South Africa last year.

Following launches in Australia, New Zealand, Indonesia, Thailand and Malaysia, it plans to export 100,000 RHD vehicles in 2023, before entering European markets in 2024. Chery plans to be present in all markets except the US, Canada, Japan and South Korea by 2025.