Chinese Automaker Chery Considers U.S. Market Expansion Once Again

Chinese state-owned automaker Chery is reportedly exploring the possibility of expanding into the United States market. While this is not the first time Chery has expressed interest in entering the U.S., the company remains vague about its plans for expansion.

Chery initially planned to enter the U.S. market in 2005 and had intentions to import a limited supply of its Exeed crossover in 2020. However, due to unforeseen circumstances, these plans were put on hold. Now, Chery executives are once again expressing their desire to bring their vehicles to American consumers.

Brian Wu, executive vice president of Chery Mexico, emphasized the importance of the U.S. market, stating, “[The U.S. market] is very important for us. We already have a roadmap of how to enter the U.S., but frankly speaking I can’t say much more about our strategy.” Wu also acknowledged that the automotive landscape has changed significantly over the past two decades, making it necessary for Chery to adapt its approach.

While Chery has not revealed specific details about its plans for the U.S. market, Wu mentioned that the company is developing a product portfolio and determining which brands will enter first. Chery’s global brands include Chery, Exeed, Omoda, and Jetour, with Exeed positioned as a luxury brand to compete with Audi, BMW, and Mercedes-Benz. All of Chery’s brands offer electric, plug-in hybrid, and internal combustion powertrains and have expanded into international markets.

Wu confirmed that Chery intends to offer a mix of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) in the U.S. market. He also addressed concerns about quality and safety standards, stating that Chery’s products meet customer expectations. However, he acknowledged that consumer preferences may vary.

Chinese automakers have been expressing their intentions to enter the U.S. market since the mid-2000s. Initially, Chinese brands faced criticism for producing derivative vehicles that did not appeal to American tastes. However, with stricter emissions regulations in Europe and partnerships with Western brands, Chinese-made vehicles have made significant improvements and have even been sold in the U.S. under American badges.

Chery entered the Mexican market in 2022 and has already gained traction with its new “Chirey” brand, outselling some established nameplates. The company offers competitively priced vehicles with the latest trends and technologies, particularly in terms of interior features. Chery is striving to position itself as an entry-level luxury brand, although some aspects of its vehicles still need refinement.

Chery’s success in Mexico has prompted plans to build a large-scale vehicle plant in the country by 2024. The factory will likely focus on producing plug-in hybrids and all-electric vehicles. While it remains uncertain whether these models will be available in the U.S., having a production facility in North America would enable Chery to navigate regulatory hurdles and comply with USMCA regulations.

As Chery continues to make progress and refine its offerings, it remains to be seen whether the brand will successfully enter the U.S. market. With the automotive industry evolving rapidly and consumer preferences changing, Chery will need to carefully consider American tastes and expectations to ensure its vehicles resonate with U.S. consumers.

In conclusion, Chery’s interest in expanding into the U.S. market reflects the company’s ambition to compete on a global scale. While Chery has faced challenges in the past, it is clear that the brand is determined to refine its products and establish a presence in North America. Only time will tell if Chery’s efforts will pay off and if American consumers will embrace Chinese-made vehicles.