According to Reuters, the head of Chery's Omoda and Jaecoo brands in the Italian market stated that the Chinese automaker Chery Automobile is prepared to invest billions of euros to ensure these two brands gain acceptance in the European market within three years.
Chery Automobile will launch its Omoda and Jaecoo brands in Europe this year, initially focusing on gasoline-powered vehicles. After launching in Spain, Italy, Poland, and the UK, Chery will introduce these brands to more countries in the coming months, including the release of hybrid and fully electric models.
Kevin Cheng, CEO of Chery Omoda and Jaecoo brands in Italy, mentioned in an interview that the two brands are benchmarking themselves against brands like Kia, Hyundai, Nissan, and Volkswagen in the European market.
"Korean automaker Kia took nearly 20 years to become a trusted brand in Europe. Chery aims to achieve that in just three years," Kevin Cheng said. He also noted that the investment plan for marketing and brand development in Europe is confidential, but "it involves a massive amount, reaching billions of euros."
As Chery's export-oriented automobile brands, Omoda and Jaecoo have yet to release cumulative sales data for Europe, but globally, the two models sold nearly 150,000 units from January to August this year.
The European Union is planning to impose import tariffs on Chinese-made electric vehicles, including a 20.7% tariff on Chery. Kevin Cheng remarked, "This is a challenge. However, compared to other Chinese automakers like SAIC, Chery faces slightly lower tariffs. We hope to establish good relations with the EU, and producing cars in Europe will help us avoid these tariffs."
Chery is China's largest car exporter. The company recently acquired a factory in Barcelona, Spain, as its first production base in Europe, and expects to begin car production there with local partners by the end of this year. Chery is also evaluating a location for its second factory in Europe, with sources suggesting that the second plant may be built in Eastern Europe.
