Chery is shaking up the Australian automotive market with a unique strategy: offering a diverse range of brands—Chery, Omoda Jaecoo, and soon Lepas—each designed to appeal to distinct customer preferences rather than following the traditional premium-tier model. This approach, spearheaded by Chery Australia’s Chief Operating Officer Lucas Harris, signals a significant shift in how Chinese automakers are targeting Western buyers.
Rethinking the Brand Hierarchy
Unlike many European and Japanese automakers, which organize their brands vertically based on price or prestige, Chery’s strategy is horizontal. This means each marque targets a different lifestyle or personality type, rather than occupying a specific tier of the market.
“In Western markets, brand hierarchy is very vertical — this one’s entry-level, this one’s volume, this one’s premium, this one’s luxury. My observation of what we see in Chinese brands… is it’s much more horizontal,” explained Lucas Harris.
This shift reflects a broader trend among Chinese automakers, seeking to cater to increasingly diverse consumer tastes without adhering to established Western brand structures.
Understanding Chery’s Current Brands
Here’s a breakdown of Chery’s existing brands and their target audiences:
- Chery: This is the foundational brand, appealing to mainstream family buyers seeking practicality, reliability, and straightforward value. Chery vehicles are known for their traditional designs and ease of use.
- Omoda: Targeting design-conscious buyers, Omoda focuses on creating sportier, more expressive vehicles with a focus on aesthetics and modern styling.
- Jaecoo: This brand combines a tougher, urban-off-road theme with a sophisticated, refined driving experience. In markets like Australia, Jaecoo and Omoda are sold in the same showrooms, leveraging shared infrastructure.
- Lepas: Set to arrive in Australia early next year, Lepas represents Chery’s boldest venture yet. The brand will be characterized by distinctive shapes, vibrant colors, and creatively designed interiors, attracting customers who want to make a statement.
Intentional Overlap and Future Expansion
Chery’s brand strategy isn’t about creating rigid boundaries; there’s intentional overlap at the edges. The goal is to use each brand as a gateway to the others. For example, a customer drawn in by Lepas’s bold design might discover the practicality and value of a Chery model.
While the current lineup is expanding rapidly, Mr. Harris hasn’t ruled out further brand additions. He acknowledged that decisions about new brands ultimately rest with Chery’s headquarters in China.
“Part of being in a global company is that there will be global decisions that, whether we totally understand them or totally agree with them, sometimes is not relevant,” he said.
Chery’s vast portfolio includes potential candidates for Australian introduction. These include Exeed and Luxeed (premium brands, the latter developed in collaboration with Huawei), Jetour (specializing in off-road vehicles), iCar (an electric vehicle brand, also known as iCaur), and commercial vehicle brands Karry and Rely.
Focus on Brand Differentiation
For now, the priority remains educating Australian consumers about the nuances between Chery’s brands. This involves ensuring each brand has the right vehicles, design language, and retail identity to connect effectively with its target audience. This thoughtful approach to brand management suggests Chery aims to carve out a unique position within the Australian automotive landscape.
