Recently, the Financial Times reported that Victor Zhang, head of Chery Automobile UK, said that Chery plans to enter the British market in 2024 and complete the construction of factories in the European market by 2030.
It is reported that Chery plans to launch the first model of the Omoda brand in the UK in February this year, which is the C5 medium-sized SUV. It is also expected to introduce high-end brand Jaecoo cars in the summer. Victor Zhang, head of Chery's UK region, revealed that Chery's target for entering the UK market is Korean automakers Hyundai and Kia, which currently account for nearly 10% of UK car sales.
Chery is very confident in the British electric vehicle market. Victor Zhang said that the demand for cars in the British market is considerable and is expected to reach 2 million vehicles. In addition to bringing the brand to the British market, Chery Automobile is considering building two factories in Europe in order to better grasp market trends and respond to localized electric vehicle market demand. One of them will be set up in the UK to specialize in the production of right-hand drive models, mainly focusing on electric vehicles to meet the needs of smaller markets such as the UK and Ireland. The production of fuel vehicles and hybrid models will be adjusted according to market demand in the future. Another factory will be set up in Europe to produce left-hand drive models to serve France and other European regions. It is expected to be put into operation before 2030.
In terms of pricing strategy, Chery plans to price its models in line with competitors Hyundai and Kia, rather than lower than other mass-market brands. Victor Zhang said in an interview with the Financial Times: “I don’t think we just want to scare others with the cheapest price. This is not what we want to do. We just want to bring good products and good brands. "
In fact, Chery had already begun planning for overseas business as early as 2001. Today, Chery has achieved sales in more than 80 countries and regions, with more than 12 million users worldwide, and the number of users in overseas markets has reached 3.35 million. According to official website data, in 2023, Chery's cumulative sales will exceed 1.88 million vehicles, and revenue will exceed 300 billion yuan, a year-on-year increase of 52.6%. Among them, export car sales reached 937,000 units, a year-on-year increase of 101.1%, ranking first in the export of Chinese brand passenger cars for 21 consecutive years.
These achievements have laid a good brand foundation for Chery to enter the British market. However, the market is dynamic. With the acceleration of British government policies, more electric vehicle brands will enter the British market in the future, thus intensifying competition in the local market and changing the electric vehicle market. The structure of the automobile market.