Chery Adds Italy to European Sales Push

Chinese automaker group Chery Auto is set to start selling its Omoda- and Jaecoo-branded passenger cars in Italy by this year’s third quarter.

Reuters reports that the automaker's Italian national manager confirms that Italy will be the group’s second European market. In another 18 months, Chery plans three SUV models each for the Omoda and Jaecoo ranges with a mixture of fuel types to serve different parts of Europe.

Chery is one of several Chinese automakers flooding into the European market offering cheaper electrified and battery-electric vehicles than current products from established domestic brands.

The automaker began selling cars in Spain earlier this year and will start sales in the U.K. and Poland before the end of 2024, with other major European markets later, Chery's Italian country manager Allen Jean says during a presentation in Milan.

Trade tensions are running high between China and the European Union, which is investigating whether Chinese EV makers benefit from unfair government subsidies.

Chery is also looking at building an assembly plant in Europe and has held talks with Italy's government about investing in the country, sources have told Reuters, adding that other options for the Chinese carmaker include Spain.

The company plans to start sales in Italy with turbo gasoline versions of the Omoda 5 crossover and the larger Jaecoo 7 SUV, followed by a fully-electric Omoda 5 and a plug-in hybrid version of the Jaecoo 7 by the end of 2024. It has not disclosed prices, but the gasoline Omoda 5 starts at €29,900 ($32,400) in Spain.

In line with Chinese rival BYD, Chery will use a network of 40 local established dealers, which Jean says will give it immediate access to an extended sales network and give credibility to its new brands. He adds, “Setting up an efficient aftermarket service will also be a priority.”