New Chery Omoda 5 small SUV locked in for launch this year, taking the fight up to MG and Haval
Budget Chinese brand Chery has locked in its return to Australia this year, kicking off with the 2022 Chery Omoda 5 that will rival compact SUVs such as the top-selling MG ZS.
Company sources in China have told carsales exclusively that the brand’s launch in Australia under a factory distribution operation has been green-lit.
“We have confirmed that Chery will import vehicles to Australia directly,” our source said.
“Australia as a representative market for right-hand drive cars will be the first to receive Omoda 5.
“This move shows how determined Chery is to enter the Australian market, and become a formidable competitor in the Australian SUV market in 2022.”
Chery is clearly buoyed by the success of MG, which has fast become one of Australia’s top 10 brands, and the newcomer will hope to emulate MG and other fast-growing Chinese brands including GWM/Haval and LDV.
It’s also following in the footsteps of Chinese car-makers such as BYD that have bold strategies in place for international expansion.
Chery hasn’t been seen on the Australian new-car market since 2015, when previous importer Ateco Automotive ended a four-year run offering cut-price cars such as the $9990 Chery J1 city car and the J11 small SUV that was offered at $19,990 drive-away before its demise.
This time around, Chery is expected to mount a competitive, but more upmarket, first offering with the all-new Omoda 5, lining up closely to the MG ZS – Australia’s top-selling small SUV last year that’s priced from $22,490 drive-away – and the Haval Jolion, which starts from $27,490 drive-away.
The just-launched BYD Atto 3 also competes in this segment, but as an all-electric vehicle it starts higher at $44,381 plus on-road costs – a similar mark to Australia’s cheapest SUV, the MG ZS EV, which opens at $46,990 drive-away.
Chery will be keen to erase any lingering doubts over quality and safety with the Omoda 5 – the previous J11 had a two-star ANCAP rating, for example, and was recalled due to parts containing asbestos – and is therefore expected to offer a high level of specification.
Unveiled at the Guangzhou motor show last November, where Chery first flagged that the Omoda 5 would be offered in Australia in 2022, the SUV is built on a new platform and is the first model bearing Chery’s ‘Art in Motion’ design language.
Tech highlights include a dual 10.25-inch HD curved screen in the cockpit, while overseas specs show a 147kW/290Nm 1.6-litre turbo-petrol engine driving the front wheels through a seven-speed dual-clutch automatic transmission.
Full-electric and plug-in hybrid powertrains are also understood to be in development.
Chery’s Australian business will be set up along similar lines to MG Motor Australia and GWM Australia rather than in partnership with an independent distributor, as was previously the case with Ateco and which continues today with other brands such as BYD/Nexport and LDV/Ateco.
As well as tackling existing competitors, Chery will have to contend with a raft of Chinese car-makers and brands that have similar plans for the Aussie market.
Great Wall Motors is expected to expand beyond GWM and Haval soon with the launch of its Ora brand in Australia, followed by harder-core off-roaders under its Tank subsidiary, while Nio and Lynk & Co are also planning an Aussie tilt by 2025.
Join the conversation at our Facebook page
Or email us at [email protected]
Keyword: Confirmed: Chinese brand Chery returning to Australia