- Gradual Expansion and Calculated Moves
- Gasoline Before Electric: A Tactical Move, Not a Step Back
- Promising Results Despite a Late Start
- The Russian Experience: Warning Signs and Strategic Shifts
- Towards a Stronger European Future
In a move that reflects careful planning and cautious expansion, Chinese automaker Chery continues to solidify its position as the leading car exporter among Chinese brands. During the first four months of 2025, the company exported over 343,203 vehicles, including approximately 87,738 units in April alone. This strong performance builds on Chery’s consistent 22 year streak as China’s top vehicle exporter.
What stands out, however, is not just the numbers, but the company’s surprisingly late entry into the European market, backed not by electric models, but by gasoline powered cars, at a time when most major automakers are shifting rapidly toward electrification.
Gradual Expansion and Calculated Moves
Chery chose to initiate its European expansion from southern countries like Spain, deliberately avoiding a direct entry into highly competitive markets such as Germany and the United Kingdom. This decision reflects the brand’s reliance on a strategy of silent progression, aiming to build a stable customer base in less saturated markets before moving into major European powerhouses. According to the company’s vice president, success lies not in being the first to arrive, but in avoiding costly timing and execution mistakes.
This approach demonstrates a deep understanding of the European market’s volatility and its political and economic complexities. Instead of relying on flashy advertising campaigns, Chery focuses on delivering reliable vehicles with attractive designs and competitive pricing, allowing it to gradually establish a firm foothold across the continent.
Gasoline Before Electric: A Tactical Move, Not a Step Back
While most automakers are racing toward electrification, Chery is taking a different path by focusing first on gasoline powered models. Though this strategy may seem counter to the prevailing trend, it is grounded in a realistic reading of the European market, where electric vehicles still face significant hurdles. These include unstable government subsidy policies, high production and battery costs, and limited profit margins.
Executives at major European brands like Volkswagen have warned that the rapid rise in EV sales could pressure company profits in 2025, highlighting the challenges of this transitional period. In response, Chery is applying a strategy of smart duality, prioritizing gasoline models as the main revenue driver, while cautiously investing in electric offerings as a long term complement.
This approach is reflected in the launch of its global brands, OMODA and JAECOO. For instance, in the first quarter of 2025, OMODA sold around 3,002 units of its gasoline powered OMODA 5, compared to just 588 units of the electric E5. Meanwhile, JAECOO performed even better, recording over 13,829 sales of gasoline models.
Promising Results Despite a Late Start
Despite the relatively recent entry of OMODA and JAECOO into the European market, their early performance reveals strong competitive potential, particularly in the segment of combustion engine vehicles. In the first quarter of 2025, OMODA recorded a total of 7,947 vehicles sold, with only 703 being electric, and the vast majority powered by gasoline. This sales split highlights the current preference among European consumers for traditional internal combustion engines.
OMODA managed to outperform brands like XPENG and is now approaching BYD, which registered 20,265 vehicles in Europe in 2024. OMODA secured the 41st spot among registered car brands in the region, placing it ahead of XPENG. Meanwhile, JAECOO delivered a standout performance with 13,829 vehicles sold in the first quarter alone, reflecting strong appeal in terms of design, features, and competitiveness within the midsize SUV segment.
The Russian Experience: Warning Signs and Strategic Shifts
Chery had seen major success in the Russian market, securing a 20.4 percent share in 2024, second only to the domestic brand Lada. However, recent political and economic developments, particularly the introduction of new import taxes that reached up to 85 percent, pushed the company to reevaluate its presence in the region.
In its Hong Kong Stock Exchange listing prospectus, Chery confirmed its plan to gradually scale back operations in Russia to avoid potential sanctions from Western countries and safeguard its long term investments. This move highlights the company’s flexibility and ability to adapt its strategy in response to shifting geopolitical dynamics.
Towards a Stronger European Future
Despite its relatively late entry into Europe, Chery now demonstrates strategic maturity and solid performance. Its decision to focus on gasoline powered vehicles was not a random gamble, but rather a calculated response to market dynamics and cost profit considerations. At the same time, the company maintains readiness for an electric shift, achieving a balanced approach between stability and innovation.
As Chery continues expanding across Southern European markets and gradually builds a strong reputation, it may well evolve in the coming years from a rising challenger into a prominent name in the European automotive sector. In this industry, success is not solely about speed, but about understanding the market and avoiding missteps, a strategy Chery appears to master with quiet confidence.
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