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Omoda and Jaecoo: Chery considers launch in China

Chery is considering offering the internationally successful Omoda and Jaecoo brands in its Chinese home market for the first time. While exports are growing rapidly, Chery’s sales in China have fallen significantly.

Constantin Hoffmann

Co-founder, podcast host & topic editor

Omoda and Jaecoo could launch in China

Chery is reportedly considering launching its Omoda and Jaecoo brands, which have so far primarily targeted international markets, in China as well. Both would target the premium segment there and bolster Chery’s struggling domestic business.

No final decision has yet been confirmed. There are also no specific details about potential models, sales channels or a launch date. However, reports from China suggest that marketing teams are already being assembled.

Chery could use the very brands it has established internationally to return to stronger growth in its home market.

Chery’s export business is growing much faster

Behind these considerations is a striking shift in the group’s business. Chery sold a total of 280,128 vehicles in August 2026, an increase of 15.4% compared with the same month a year earlier.

Of these, 196,984 vehicles were exported. That represents around 70.3% of the total monthly volume. In China, by contrast, the group sold only 83,144 vehicles, 26.6% fewer than a year earlier.

MetricAugust 2026January to August 2026
Total sales280,128 vehicles1,914,481 vehicles
Exports196,984 vehicles1,343,334 vehicles
Sales in China83,144 vehicles571,147 vehicles
Change in exports+52.1%+68.2%
Change in Chinadown 26.6%down 38.5%

Over the first eight months, Chery’s total sales therefore rose by 10.8%. However, this growth came entirely from its international business. Rising exports → growing group sales, despite a significant decline in the Chinese home market.

Both brands have become established internationally

Omoda was established as a standalone brand in 2021 for a younger, internationally oriented customer base. Jaecoo followed in 2022, primarily targeting buyers of more upmarket SUVs outside China.

In April 2026, the two brands together surpassed one million vehicles sold worldwide. Europe plays an important role: From January to July, Chery says it sold more than 208,000 vehicles in 24 European countries, 201% more than in the same period a year earlier.

Models such as the Jaecoo 7, Jaecoo 5 and Omoda 5 are particularly prominent. According to Chery, all three at times ranked among the ten best-selling models in the United Kingdom. The brands have therefore achieved a level of recognition that could potentially carry over to China.

Premium strategy faces a brand challenge

For the planned China launch, Chery reportedly intends to recruit professionals who previously worked for BMW, Mercedes or Audi. This suggests that Omoda and Jaecoo could be positioned not as affordable mass-market brands, but with clear premium ambitions.

However, that is precisely where the challenge lies. With Exeed, Chery already has a more upmarket brand, while Jetour also offers numerous SUV models. In the first eight months of 2026, Jetour sales fell by 10.6%, while Exeed sales declined by 37.8%.

Arguments in favor of a China launch

  • Omoda and Jaecoo already have international brand recognition.
  • The brands could give Chery’s premium offering greater emotional appeal.
  • Successful export models can generally be introduced in China more quickly.

What Chery still needs to clarify

  • How the brands will be differentiated from Exeed, Jetour and the core Chery brand remains unclear.
  • A dedicated dealer network would require substantial investment.
  • China’s premium segment is highly competitive and subject to intense price pressure.

What this means for Europe and the DACH region

For customers in Germany, Austria and Switzerland, collectively known as the DACH region, nothing will change for the time being. There are neither confirmed model changes nor signs of a shift in strategy in Europe.

A successful launch in China could nevertheless bring Omoda and Jaecoo additional economies of scale. Higher production volumes make it easier to invest in new platforms, plug-in hybrids, electric cars and software. At the same time, Chery would have to ensure that the brands’ international positioning is not diluted by differing product lineups.

The plan is therefore more than an ordinary market launch. Chery may be attempting to transfer the strength of its export business back into the Chinese market. Whether that works will depend primarily on a clear allocation of models and credible differentiation from the group’s numerous existing brands.