Chery Banks on Electric Cars with New $800 Million Factory in Vietnam

Chinese carmaker Chery is ramping up its electric vehicle (EV) ambitions in Southeast Asia, building a massive new factory in Vietnam. This investment of 800 million dollars marks an important step for Chery, which thus becomes the first Chinese manufacturer electric cars to establish a production unit in the growing Vietnamese market.

A joint venture between Chery’s subsidiary Omoda & Jaecoo and Vietnamese conglomerate Geleximco will see the construction of a new plant in the coastal province of Thai Binh. This state-of-the-art plant has an annual production capacity of 200,000 vehicles once fully operational. The initial phase of construction is expected to be completed in the first quarter of 2026 and production will focus on Chery’s OMODA and JAECOO electric vehicle models.

While the factory is expanding, Chery is not waiting to find the Vietnamese market. The company plans to introduce two models of electric vehicles through imports by the end of 2024. This early entry strategy shows Chery’s intention to establish a business in Vietnam even before the new factory is operational.

This plan by Chery is particularly interesting due to the presence of the Chinese company BYD, the world’s leading electric car manufacturer, which has also expressed its interest in establishing a factory in Vietnam. While BYD’s plans appear to be on hold for now, Chery’s decisive move positions it as a leader in the race to capture a share of Vietnam’s growing electric vehicle market.

For Vietnamese consumers, Chery’s arrival means more choices and potentially competitive prices in the electric vehicle segment. The first imported models expected later this year are the Omoda C5 and E5, followed by the Jaecoo 7 and its plug-in hybrid variant, the Jaecoo 7 PHEV, which will arrive in the fourth quarter.

This strategic partnership with Geleximco strengthens Chery’s position in Vietnam. Geleximco’s strong presence and market knowledge will undoubtedly prove instrumental in enabling Chery to navigate Vietnam’s automotive landscape.

Chery is no stranger to the Vietnamese market. It already tried to establish itself there in 2009 with the QQ3 model, but failed to establish itself against Japanese and South Korean competitors. This new venture, however, represents a fresh start, targeting the rapidly expanding electric vehicle segment. Experience Cherry as China’s largest auto supplier for 21 consecutive years, along with its commitment to EVs, suggests that it may be better equipped to succeed in Vietnam this time around.