The prominent car manufacturer in China Chery Auto is set to launch its Omoda and Jaecoo brands in Italy during this year’s third quarter. This represents Chery’s expansion into its second European market after Spain, demonstrating the company’s ambition to broaden its European footprint.
Allen Jean, Chery’s manager for Italy, shared these details in a Milan presentation, showing the company’s commitment to European growth.
SUV Lineup Expansion by 2025
Chery has set a goal to introduce three SUV models for both the Omoda and Jaecoo brands by the end of 2025. The models will offer a range of fuel options, including electric, to meet diverse consumer needs across Europe. This initiative aligns with Chery’s strategy to provide affordable, mostly electric vehicles in a highly competitive European automotive market.
Broader European Ambitions in 2024
Having started its European journey in Spain, Chery now plans to enter the British and Polish markets before 2024 concludes. The company also eyes further expansion across major European territories. These ambitions come amidst escalating trade tensions between China and the European Union over investigations into alleged unfair subsidies to Chinese EV manufacturers.
To optimize its European operations, the EV player in China Chery Auto is thinking about establishing an assembly plant within the continent. Italy and Spain are potential locations for this venture, with ongoing discussions with the Italian government highlighting the seriousness of Chery’s investment considerations.
Initial Offerings and Pricing
Chery’s debut in Italy will feature petrol versions of the Omoda 5 crossover and the Jaecoo 7 SUV, with electric and plug-in hybrid variants expected by the end of 2024. While Chery has not disclosed Italian market prices, the petrol Omoda 5 is priced at 29,900 euros in Spain.
To facilitate market entry and brand credibility, Chery plans to partner with established local dealerships. Allen Jean emphasized the importance of a solid after-market service network, with discussions in progress to secure space in 40 Italian dealerships, aiming to expand to 60 by the end of next year.
This approach mirrors the strategy of BYD, Chery’s Chinese competitor, as it seeks to navigate Italy’s competitive automotive landscape successfully.
Chery Auto’s foray into the Italian market signals a significant step in the company’s European strategy, aiming to offer competitive, innovative vehicle options to European consumers.
