Chery's Long-Term Vision for Australia: Building a Strong Foundation

Chery, the prominent Chinese car maker, is committed to making a lasting impact in the Australian automotive market. According to Mr. Zhang Guibing, Executive Vice President of Chery, the company’s return to Australia has been on track and is proceeding as planned.

A Strategic Approach to Re-Establishing the Brand

Chery's resurgence in Australia, following a seven-year hiatus, has seen significant progress. Since re-entering the market in 2023, Chery has sold over 11,000 vehicles locally across its current lineup of three models: the Omoda 5, Tiggo 7 Pro, and Tiggo 8 Pro. This year alone, sales have surged by an impressive 127.7% compared to the same period last year, with 5,152 units sold by the end of July. The brand is set to surpass its 2023 sales total of 5,890 sometime in August.

Despite these encouraging figures, Mr. Zhang emphasizes that Chery's focus is not solely on achieving high sales volumes quickly. Instead, the brand is prioritizing the establishment of a solid foundation in Australia. “From the beginning, I told my colleagues there’s no need to say [we want to go] very high quickly,” Mr. Zhang explained. “We need to make a very good foundation.” This long-term approach reflects Chery’s commitment to sustainable growth and market stability.

Learning from the Past

Chery’s initial foray into the Australian market from 2011 to 2015 faced several challenges. Issues such as poor safety ratings and an asbestos-based recall negatively impacted the brand’s reputation, ultimately leading to its withdrawal. “The first time we generally say we [were] not a success,” Mr. Zhang acknowledged.

However, Chery is now operating under a wholly-owned subsidiary model, a significant change from the previous third-party distributorship approach. This shift signifies Chery’s renewed commitment to the Australian market and its determination to build a lasting presence.

Expanding the Lineup and Network

Chery’s strategic vision includes not only enhancing its dealership network, which now boasts 76 locations, but also expanding its vehicle lineup. The introduction of the Chery Tiggo 4 small SUV is expected by the end of the year, providing Australian customers with more options.

Additionally, Chery is preparing to launch its first electric vehicle in Australia, the Omoda E5, in the second half of 2024. This move aligns with global trends towards sustainable mobility and underscores Chery’s commitment to innovation and long-term growth.

A Bright Future for Chery in Australia

Chery’s methodical approach to re-establishing itself in Australia reflects a strategic focus on building a robust foundation for future success. With a growing dealership network, an expanding vehicle lineup, and a commitment to long-term investment, Chery is poised to make a significant impact on the Australian automotive landscape.

For those interested in exploring Chery's latest offerings or learning more about the brand’s future plans, visiting a local dealership or staying tuned to industry updates will be the best ways to stay informed. As Chery continues to strengthen its presence in Australia, the future looks promising for this ambitious automaker.