Chinese automaker Chery is setting ambitious targets for the Australian market, aiming to secure a place among the top five best-selling car brands by 2027. Simultaneously, the company plans to establish its sub-brand, Omoda Jaecoo, within the top ten. This aggressive strategy signals a significant shift in the Australian automotive landscape, as Chinese brands increasingly challenge established players.
Context: Rising Tides of Chinese Automakers in Australia
The influx of Chinese automotive brands into Australia is rapidly reshaping the market. Vehicle exports from China to Australia have nearly sevenfold since 2020, now accounting for 20% of all new cars sold – a dramatic increase from just 4% in 2020. This surge is largely driven by mainstream electric and hybrid models from brands like BYD, MG, GWM, and, of course, Chery, alongside Shanghai-built Teslas. Several other Chinese automakers also harbor ambitions of reaching the top five in the coming years, indicating a wave of new models and competitive pricing heading to Australian showrooms.
Chery’s Strategy: Execution over Hype
Chery Australia’s Chief Operating Officer, Lucas Harris, emphasizes that the brand’s ambitions will be realized through consistent execution rather than mere promises. He states that any brand claiming not to desire a top-five position is likely being disingenuous. Chery’s immediate focus is to build awareness and trust among Australian consumers – key hurdles for any new entrant.
“By ’27 we want to be there… It’s easy to say a lot of the things that we’re saying at the moment; it’s another thing to do them.” – Lucas Harris, Chery Australia COO
Key Growth Drivers
Several factors underpin Chery’s optimistic outlook:
- Upcoming Ute Model: A joint effort between Australia and China, this ute model is poised to be a major growth driver, with Australia prioritized for early release and high-volume sales. Chery plans to achieve 1,000 monthly sales in this competitive segment.
- Expanding Dealer Network: Chery is steadily expanding its network of dealerships, prioritizing viability alongside coverage. The brand currently has approximately 85 sites and aims for around 100 by the end of next year, while Omoda Jaecoo, a newer brand, currently operates with over 40 sites, expecting to double that number within 12 months.
- Strategic Positioning: Chery views itself as an “establishing brand,” carefully navigating decisions to avoid pitfalls that have impacted other Chinese automakers who prematurely pursued growth.
Performance and Current Status
So far this year, Chery has delivered 27,578 vehicles, surpassing Volkswagen (24,731) but falling just short of Nissan (31,050). Remarkably, sales are up a substantial 207.9% compared to the same period last year. The Omoda Jaecoo brand has gained traction, achieving 2,709 sales year-to-date, outperforming Cupra and Jeep.
Conclusion
Chery’s ambitious goals in the Australian market reflect the broader trend of Chinese automakers gaining prominence. By focusing on execution, a strong product line (including the highly anticipated ute), and strategic expansion, Chery aims to cement its position among Australia’s leading car brands, with its sub-brand Omoda Jaecoo also aspiring to reach the top ten. The company believes that focusing on solid fundamentals will allow Australian consumers to determine the brand’s ultimate success.
