Chery Auto's Multibillion Euro Bet on Omoda and Jaecoo in Europe

Chinese carmaker Chery Auto plans to invest billions of euros to establish its Omoda and Jaecoo brands in Europe within three years. Following launches in Spain, Italy, Poland, and Britain, the company aims to expand into more markets with hybrid and electric models. Investment details remain confidential.

Chinese carmaker Chery Auto is preparing to invest billions of euros to establish its Omoda and Jaecoo brands among European consumers within three years, according to the brands' Italian market head. The company will launch Omoda and Jaecoo in Europe this year, initially focusing on petrol-engine vehicles.

Kevin Cheng, CEO for Omoda and Jaecoo in Italy, said in an interview that they are looking at established brands like Kia, Hyundai, Nissan, and Volkswagen for benchmarks. Cheng noted that it took Kia nearly two decades to build trust in Europe, but Chery aims to achieve this in three years with significant investments in marketing and brand development.

The brands, which have reported global sales of 150,000 vehicles between January and August, face a proposed 20.7% EU tariff on Chinese-made electric vehicles. Chery plans to start local production at a recently-acquired Barcelona factory by year-end to mitigate tariff impacts, with further expansion in Eastern Europe under consideration.

(With inputs from agencies.)