Chery Automobile eyes US Market for the third time: Will third attempt be the charm?

Chinese Automaker takes entering the US market into consideration after experiencing success in Mexico, and plans for electric vehicles

Chery Automobile, a prominent Chinese state-owned car manufacturer, is setting its sights on entering the challenging US market, marking its third attempt to do so. Previous efforts in 2005 and 2020 ended in disappointment, but the company remains determined.

In an interview with Motor Trend, Chery Mexico’s Executive Vice President, Brian Wu, emphasized the importance of the US market for the company. Chery made a successful entry into the Mexican market in 2022, where it experienced immediate success. The company even has plans to establish a factory producing electric vehicles (EVs) and hybrids. Wu expressed confidence in the new attempt, stating that the current environment is significantly different from that of 20 years ago.

While specific details about Chery’s strategy to enter the US market are not available, Wu mentioned that the company has a rough roadmap outlining the products that will lead the way. Chery has several high-end sub-brands, and Wu envisions that these will predominantly consist of “new energy vehicles” (EVs), with some internal combustion models in the mix.

Chery encompasses multiple brands, including the main Chery brand and spin-offs like Omoda, Jetour, Jaecoo, Exeed, and Luxeed. Luxeed, a high-end, tech-heavy brand established in collaboration with Huawei, will not enter the US market due to Huawei’s restrictions in the United States.

Challenges on the road to Chery’s US market ambitions include stringent US vehicle safety standards, which pose a lengthy and demanding process. Additionally, the ongoing trade tensions and sanctions imposed on China by the US could lead to tariffs of up to 19.3%, impacting pricing. However, these challenges can be circumvented through a Mexico-based Chery manufacturing plant and the existing US-Mexico-Canada Agreement (USMCA).

As Chery gears up for its third attempt to make its mark in the US, the automotive industry and consumers will be watching closely to see if the third time will indeed be the charm for this Chinese automaker.