Chery says myriad sub-brands help customers, not confuse them
Chery is on track to operate six SUV brands in Australia by the end of next year – and it thinks you will understand the differences between all of them.
A top Chery executive has claimed its array of sub-brands – set to number six in Australia by the end of next year – is an asset that helps it stand out against the likes of Toyota, rather than a source of confusion.
The Chinese car giant is due to complement its current Chery, Omoda and Jaecoo marques locally – the latter pair sold through the same dealer network – with Lepas later this year, and iCaur and Freelander in 2027.
It is before Jetour – a brand under the Chery umbrella internationally, but set to be distributed separately to the main head-office operation in Australia from next year – is included in the tally.
All six Chery-run brands sell SUVs available or standard-fit with some form of hybrid or electric power, instead relying on styling and price point as differentiators.
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Chery International president Zhang Guibing told Australia and New Zealand media that offering a range of sub-brands helps the car giant capture a broader market than its rivals.
“Ten years ago, when you look at Toyota or Volkswagen, one model, some model, they could [sell in] one year, two million units,” Guibing said in a roundtable interview at the brand’s head office in China.
“But today, it’s very difficult for you to find some model that can move more than half a million. So it’s really now, the customer, that difference.”
“It’s the same as ladies’ clothes. These clothes are very beautiful, but when too many ladies use it, the ladies say, ‘No, I don’t like to buy. I don’t want to be the same as other people.’ So I think it’s the same.
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“We are trying to use different sub-brands to cover specific customer groups.”
The executive said distinct sales and development teams for each brand – even if there is shared technology, underpinnings, engines and electric motors – help separate them.
“Even Chery, from the R&D to the sales team, they are really different. They move and they just follow these customer groups. They understand the habit, they understand the language, they really understand what they want.
“By this way, we are thinking, we are using different sub-brands to try to cover different customers. We don’t want to mix together.”
MORE: Freelander joins Jaecoo, Omoda, and Lepas under Chery Australia umbrella
Chery is pitched as the “family” brand at the bottom end of the price scale, Jaecoo is aimed at outdoorsy customers, Omoda focuses on sportier styling, and Lepas is claimed to sell more “elegant” cars at higher price points.
Freelander is a joint venture with Jaguar Land Rover that reboots one of the British brand’s classic badges, while iCaur sells boxy, electric and range-extender SUVs with a resemblance to the Land Rover Defender.
In Australia, a Jaecoo J5 is $2000 dearer than a comparable Chery Tiggo 4, while the Omoda 9 is $2000 dearer than the Chery Tiggo 9 with two fewer seats but 80kW more from a similar plug-in hybrid system.
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Guibing acknowledged there will be some overlap between each of the Chery sub-brands, but said he is confident there is enough to set them apart.
“Of course, I couldn’t say completely, no [there is not] any conflict. But I think we have the policy that most of the customers, I think they will not conflict each other.
“… We will have the different cost structure, price structure. We are trying to [have] such a Chery, maybe today is here. Omoda Jaecoo will be little higher; Lepas, a little more high. I think we also have such kind of guidance.”
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