2023-09-28 18:39:49
Chinese brands continue their expansion throughout Europe. While Zeekr and the Geely Group choose to disembark in the north – due to the acceptance that electric mobility has in countries like Norway or Holland –, Chery, the tenth manufacturer by volume in the Asian country, has done so in the south, with its emblem Omoda.
Although some of these vehicles have already been marketed on the Peninsula, their arrival has not been made official and the brand intends to do so in January 2024. To do so, it will create a headquarters in Madrid with about 40 workers. The head of the Spanish subsidiary of Chery International will be Darren Tu.
For distribution, its intention is to develop a network of official dealers that will start at 31 at the beginning of next year, and gradually expand until reaching a total of 80, with points dedicated exclusively to after-sales.
Later, when the group is established in the Old Continent, it is expected that the concessions will leave behind their role of distribution of after-sales components and a logistics center will be established that maintains the inventory in some part of Europe, yet to be determined.
Chery Omoda 5 FP
The manufacturer stated that it wanted to focus on a conventional distribution model to be in contact with the customer and be able to make itself known through vehicle testing, with a one-month stock, as well as to provide after-sales service. However, “they may explore direct sales in the future,” according to their Branding Director for the Omoda and Jaecoo brands, Lilian Xong.
The group’s expansion will begin with the Omoda brand, the most accessible within its portfolio, and will be followed by Jaecoo, specialized in SUVs and all-terrain vehicles, and later Exeed, which exclusively manufactures electric models.
“We need a local factory”
One of the most anticipated rumors is that the Chery Group will manufacture its models in Spain, especially after they signed this spring the memorandum of understanding with the company that manages the Zona Franca industrial area in Barcelona, where the Nissan factory was located. before its closure.
Although the president of Chery Holding Group, Zhang Guibing, stated that they need “a plant in Europe, it is still too early to talk about Barcelona” and they are studying the viability of other countries besides Spain. In any case, industrial expansion deadlines are ultimately governed by EU tariff policy.
According to Chery International vice president Shawn Xu, “the CBU import rate [unidad completa, por sus siglas en inglés] “It is not, at the moment, too high.”
Xu, vice president of Chery International FP
But, if this rises due to a protectionist decision, they are considering establishing a CKD assembly factory, in which the ready parts are sent and their construction is completed within the borders of a region. This allows you to avoid taxes, “but has a high operating cost,” says Xu.
However, for Guibing, manufacturing in Europe has another intangible benefit, that of providing confidence in an unknown brand. That in Spain the MG ZS was the best-selling car of August was decisive in choosing it as the first country in which to begin its electric offensive.
“Spanish customers trust Chinese cars,” said the manager. «We would like to be the leaders, but volume is not our goal. Our priority is to do things step by step and make sure our customers are satisfied. “Once this is the case, it is possible that we will end up in first place in the market,” he stated.
That the share of combustion vehicles remains close to 90% also had something to do with it. “In southern Europe, the penetration of new propulsion is a bit low,” lamented Guibing, who will launch the Omoda 5 in its thermal version, and later in a 100% electric edition in mid-2024. They will be followed the Jaecoo 7 large SUV after the summer.
The Chery Group has 10 CKD factories in various countries around the world, including Malaysia, Iraq and Brazil. The export forecasts of Chery’s international division are 900,000 units by 2023.
#Chinese #manufacturer #Omoda #chooses #Spain #European #market