“We are a modest brand, we will have hot cars”

Le Journal de l’Automobile: What is Chery’s strategy in the European market?

Jochen Tüting: We are a modest brand, not a startup. So we have desires that match who we are. As a reminder, in 2023 we sold 1.88 million cars, half of which were outside China. We have been China’s leading car dealer for many years.

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JA: What is the timetable for this deployment?

JT: We started in Spain which is a test market for us. At the end of the year we will be in England, Italy and Poland.

The French and German markets are very important, but very difficult because of the large presence of national producers.

JA: And in France?

JT: Second, next year. Like in Germany. These are two very important markets, but they are very difficult due to the large presence of national producers.

JA: What form will the distribution take?

JT: In major markets, we will open a national subsidiary. In France, this has not yet happened, but we will in the coming months (Editor’s note, based on feedback from other dealers, Chery has already contacted distribution groups). In smaller markets, we rely on existing importers. Regarding the distribution method, our models will be sold under a standard dealer contract.

We plan to have around 80 distributors in France

JA: How big will the network be?

JT: In Germany, at the beginning, we plan to have a network of distributors between 80 and 120. In France, we have not set the figures yet, but it will be the same, around 80 by the end of 2025. (For comparison, BYD plans a network of 100 dealers by the end of 2025 Editor’s note).

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JA: How will Omoda and Jaecoo, the two brands you will launch in Europe, meet your expectations in this market?

JT: The SUV market share represents 40% of registrations in Europe. With Omoda and Jaecoo, we have two cars with a very solid design. The Omoda 5 is a crossover coupe while the Jaecoo 7 is a “regular” car, ie more space inside. But it’s not just a question of style. Omoda 5 will be available in two versions: not only 100% electric, but also thermal, while Jaecoo 7 will have a hybrid plug-in version.

Omodo 5 will be available in electric and thermal versions. © Chery

JA: Until now, many Chinese manufacturers do not sell on the market, at least in France, hot cars …

JT: As I said, we are a modest brand. And it is clear that despite the great development of electric cars in Europe, hot cars still represent the majority of sales. So we don’t want to close the whole market. For example, in Spain, Omodo 5 is sold in a heated version.

We want to be the center of the market, namely the B, C and D segments.

JA: What is the product plan?

JT: As an overall brand, we want to be the center of the market, namely segments B, C and D. We plan to launch six new products within two years, three for each brand with a range of petrol engines and plug-ins. and electricity. For example, we will offer the Omoda 3, which is a 4.30 m SUV, which will fit in the B+ segment.

Jaecoo 7 ©Chery

JA: What position will the products offered by Chery be in?

JT: Our strategy is based on ranges that offer a good quality/price ratio and a very good level of equipment.