MILAN, Sept 12 (Askume) – Chinese automaker Chery Automobile is ready to spend billions of euros to get its Omado and Jaco brands adopted by European customers within three years, the head of the Italian market told Askume.
Chery Automobile will launch Omoda and Jaco in Europe this year , with an initial focus on gasoline-engine cars. After sales begin in Spain, Italy, Poland and the UK, more countries will be added in the coming months, as well as hybrid and fully electric models.
The brands are using Kia, Hyundai (005380.KS) , Nissan (7201.T) and Volkswagen (VOWG_p.DE) as benchmarks, Omoda and Jaco Italy CEO Kevin Cheng said in an interview.
He said it took South Korea’s Kia almost 20 years to become a trusted brand in Europe.
“Our target is to achieve this within three years,” he said.
He said plans to invest in marketing and brand development in Europe were confidential, “but it is a very large amount, billions of euros.”
Export brands Omoda and Jaico did not provide cumulative figures for European sales but said global sales from January to August were around 150,000 vehicles.
European UnionAn additional 20.7% tariff is proposed to be imposed on Chery automobiles as part of a plan to impose tariffs on electric vehicles (EVs) made in China.
“It is a challenge,” Cheng said, adding that Chery faced lower tariffs than some other Chinese rivals such as SAIC Motor Co (600104.SS).
“We want to have a good relationship with the EU,” he said. “Manufacturing cars in Europe will help us avoid tariffs.”
Chery, China’s largest automaker by export volume, expects to start production in Spain by the end of this year with a local partner at its recently acquired Barcelona plant, which will be Chery’s first manufacturing base in Europe.
Small groupOptions for other sites in the area are also being evaluated.
The Italian government is working with Chery and Other Chinese automakers such as Dongfeng Motor (0489.HK) are in talks to attract manufacturing investment to the country.
Chery is also considering building a second factory in eastern Europe, a source told Askume.
