China’s Chery Automobile Co. has announced an $800 million investment in a new automotive factory in Vietnam, marking a significant expansion of the automaker’s manufacturing capabilities and its commitment to the Southeast Asian market.

This makes Chery the first Chinese EV maker to set up a manufacturing facility in the Southeast Asian country. The groundbreaking venture is in partnership with Geleximco, a Vietnamese company, under Chery’s Omoda & Jaecoo unit, and will be located in the coastal province of Thai Binh.

With a production capacity planned at 200,000 vehicles annually, the facility aims to roll out Chery’s electric models, OMODA and JAECOO. The initial construction phase targets completion by early 2026, responding to the surging global demand for electric vehicles.

Expanding Global Footprint

Chery is also making strides in Europe, with plans to explore the establishment of a manufacturing plant in Italy. In the short term, the company has plans to import two electric models to Vietnam, anticipating a launch before year-end. This strategy aims to set the stage for the forthcoming full-scale production at the new Vietnamese factory.

The EV market in Vietnam is witnessing rapid changes, with Chery’s substantial investment leading the charge towards electric mobility. Despite rumors of BYD, the world’s largest EV maker, slowing down its plans to establish a base in Vietnam, the commitment from companies like Chery highlights the region’s potential in the EV industry.

Pioneering a Sustainable Future

Chery’s collaboration with Geleximco not only aims to introduce advanced electric vehicles to the Vietnamese market but also signifies a shift towards cleaner transportation globally.

As the automotive world progresses towards electric mobility, initiatives such as Chery’s are vital in defining the industry’s direction. Positioned for both domestic and international success, The new Chery factory in Vietnam stands as a crucial milestone in its quest to become a dominant force in the global EV market.

Image Source: Bloomberg