Second bite of the Chery

CHINESE car-maker Chery Automobile is staging for a second crack at the Australian market, only this time it will be a factory-backed effort rather than controlled by an outside distributor.

 

The company has been working away in the background, hiring staff in China and locally while scouting premises for an impending local re-launch later this year.

It has also imported three cars for a clinic this month to gauge customer reaction to their styling and features.

 

Chery Automobile brand manager for the Australian market, Zoe Zhang, told GoAuto the company will make its initial return to the Australian market with the Omoda5 medium SUV by the end of 2022.

 

“We will set up a subsidiary company in Australia,” she said.

 

Chery Automobile describes itself as “highly advanced in new energy technologies” and is “preparing to bring its safe and high-quality new models to the Australian market”.

 

The Omoda5 crossover is equipped with an “innovative dual motor drive” and “direct hybrid transmission” that is operable in nine high-efficiency modes.

 

Ateco Automotive, a multi-brand distributor, was the original Chery importer between 2011 and 2015, reaching sales of 4600 vehicles in that time.

 

Since the Ateco days, Chery has established joint ventures with the likes of Jaguar Land Rover and has improved the quality, look and performance of its cars.

 

Other models earmarked for an Aussie relaunch include the Tiggo 7 Pro and Tiggo 8 Pro, that like the Omoda5 feature the brand’s Art in Motion design language and have in-house developed powertrains centred on small capacity 1.5 and 1.6 turbo petrol engines some with mild hybrid assistance.

 

The 1.5 litre is good for 115kW/230Nm while the 1.6 is good for 146kW/290Nm Chery’s hybrid drive system is based on 48v electrics with 55kW/160Nm and 70kW/155Nm.

 

Chery began the production of automobiles in 1999 and then exports from China in 2001.

 

Ms Zhang said Chery had been China's largest exporter of passenger cars and SUVs for 19 consecutive years.

 

The company has several vehicle assembly and component manufacturing facilities in mainland China and its vehicles are assembled in around 15 other countries, primarily in third-party factories that use either complete or semi complete knock-down kits.

 

It has two domestic research and development centres and claims to invest around seven per cent of its total revenue in product development. 

 

Since the early 2000s, Chery has received criticism for numerous alleged infringements of foreign manufacturers' intellectual property rights.

 

Several Chery vehicles appeared to have directly copied design elements from various global manufacturers. However, the latest generation of models appear to owe nothing to outside influence.

 

It is thought Chery failed on its first attempt to conquer the Australian market due to a number of factors including an inability to deal with strict regulation, fierce competition, inadequate established sales channels and mature customer expectations.

 

A scandal over vehicles containing asbestos in some components also clouded the brand’s reputation early on, as did some poor results in ANCAP crash testing.