Chery UK Boss: Ambitious Plans for Omoda and Jaecoo Brands

Chery will launch Omoda 5 (left) and E5 (right) in the UK imminently

Chery has set ambitious targets for the UK market as it introduces two new brands: Omoda in the volume segment and the more premium Jaecoo. Despite having a strong UK connection through its joint venture with JLR in China, Chery will have to start from scratch in the UK market. Victor Zhang, the country director, shared his battle plan for the company’s success in an interview at the Goodwood Festival of Speed.

Sales Targets in the UK

Zhang aims to achieve a similar market share as Kia within five years. He acknowledges that this is a challenging goal but believes that aiming higher is necessary for success.

Customer Pitch: Price and Financing

Zhang promises competitive pricing for the Omoda 5 and E5 models, with the EV priced around £30,000-£33,000 and the petrol version priced at £25,000. The company also plans to offer PCP finance options with a monthly payment of approximately £300 for both the EV and petrol models.

Launch Timings

The Omoda 5 and E5 models are already available in the UK, with a big launch event planned in London next month. The Omoda 9 is expected to be introduced early next year, followed by the Omoda 7 and Omoda 3. The Jaecoo brand will be launched in the fourth quarter of this year, starting with the J7 model.

Differences Between Omoda and Jaecoo

Omoda is positioned as a more urban and futuristic brand, similar to Kia. Jaecoo, on the other hand, aims to be a premium brand with a design and feel closer to Range Rover. Zhang emphasizes that Jaecoo is not as high-end as Range Rover, but higher than Jeep.

Independent Operation and Joint Venture

Chery’s UK operations will be independent and separate from its joint venture with JLR in China.

Expansion in Europe

Chery has recently launched in Spain and Italy and plans to expand further into Eastern European countries, the Netherlands, Sweden, and Belgium.

Challenges and Tariffs

Chery is prepared to face the challenges posed by the additional tariffs in the EU. The company has purchased a former Nissan factory in Barcelona to produce the Omoda 5, potentially using completely knocked-down kits. Zhang believes that the UK’s decision to maintain lower tariffs is a wise move, providing customers with more options and competition.

Perception of Chinese Brands

Zhang shares that research indicates customers do not view Chinese brands negatively. Some even perceive them as offering value for money, higher quality, and advanced technology. Zhang embraces the Chinese identity of Chery and believes that the perception of being a Chinese brand does not hinder their success.

Competing with Premium Brands

Zhang acknowledges the challenge of selling new premium brands like Jaecoo. He emphasizes the importance of finding a balance between positioning the brand with a strong price and ensuring sales. Price is a crucial factor in the success of the new entrant.