As electric vehicle (EV) prices continue to drop in Australia, Chery Automobile's CEO has voiced concerns about the ongoing price war, suggesting it could have negative consequences for Australian consumers in the long run.
Chery's CEO believes the current EV price war in Australia is unsustainable and potentially harmful to consumers. The company plans to enter the Australian market with a focus on value rather than engaging in aggressive price cutting. Chery aims to sell 75,000 vehicles per annum in Australia by 2027, which would make it the third best-selling brand if achieved.
The first battery electric Chery to arrive in Australia will be the Omoda 5 compact SUV in 2024. Chery plans to launch 23 electric and plug-in hybrid vehicles globally in the coming years, based on three new architectures. The company is developing new platforms: E0X for electric passenger cars and SUVs, C0X for battery electric light commercial vehicles, and T2X for medium and large plug-in hybrid SUVs.
Chery's entry into the Australian market comes as other Chinese brands like MG, BYD, and GWM have been aggressively cutting prices on their EVs. The EV market in Australia has seen significant growth, with sales up 26% in May 2024 compared to the previous year.
As Chery prepares to enter the Australian market, its stance against aggressive price cutting sets it apart from other Chinese manufacturers. The company's focus on value and its ambitious sales targets suggest a different strategy for gaining market share. As the EV market continues to evolve in Australia, it remains to be seen how Chery's approach will resonate with consumers and impact the ongoing price war.
