Chinese carmaker Chery continues to rely on combustion engines

The number of new Chinese car brands in Germany is growing rapidly. Another big company, Chery, is now entering the scene. Chery was founded in 1997 and is one of China’s most successful car exporters. The company already operates in various regions such as Southeast Asia, Australia, Central and South America and the Middle East.

Chery has also established research activities in Europe and operates its design and development site in Raunheim near Frankfurt. In an informative interview format, FOCUS Online spoke with Jochen Tüting, managing director of Chery Europe GmbH, about the company’s expansion plans in Germany, the role of electric vehicles and combustion engines, and the differences in product strategy compared to other manufacturers of Chinese. . (FOCUS, 30.12.2023)

Chery’s expansion strategy in Europe: diversity in drives and markets

Jochen Tüting explained that Chery has been active for 20 years and operates in more than 80 markets worldwide, including Latin America, Southeast Asia, Australia and the Middle East. He sees the biggest opportunity in Europe in the SUV segment, which is why the company is launching the Omoda and Jaecoo brands to attract different customer groups. Chery offers a range of conventional combustion engines and hybrid models for fully electric vehicles, meeting the needs of different customer groups.

Unlike German manufacturers, China continues to invest in the development of gasoline and offers hybrid instead of abandoning the internal combustion engine. This allows Chery to enter markets with different needs and income levels. Jochen Tüting also emphasized that Chery makes its own engines and transmissions.

Chery’s stance on mandatory support systems and long-term growth plans in Germany

The increasing number of mandatory aid systems in the EU was also addressed. Jochen Tüting explained that this leads to high costs that affect the final price of the customer. Many customers wanted the ability to turn off some driver assistance systems, while other features such as connectivity and infotainment were more important to them.

Finally, Tüting explained that Chery, as a compact manufacturer in Germany, competes with brands such as Kia and Hyundai and follows similar strategies. In the long run, Germany wants to be as big as these brands. Chinese car prices in the German market are higher than in China due to factors such as VAT, communication costs and EU standards, but Chery plans to lower these prices as volumes increase.