Chery did not mention electric cars when it announced its intention to launch two new models in October of the previous year. These models would either have an internal combustion engine or a hybrid powertrain (EV).
Nonetheless, the company has decided to expedite the launch of its fully-electric Omoda 5 because there is such a high demand for BYD’s Atto 3.
During a briefing, the executive vice president of Chery International, Charlie Zhang, recently announced that the company intended to release the Omoda 5 in Malaysia in the third quarter or by the end of the year at the latest.
Chery to release two new EVs in China
The internal combustion engine (ICE) and hybrid versions of the Omoda, in addition to the Tiggo 8 model, were initially going to be the first products the company would offer for sale.
Chery may have been persuaded to bring its electric vehicles to the market earlier in response to the government’s call for more affordable EVs and BYD’s massive success of its Atto 3 (1,000 bookings within ten days of its launch).
NST reports that when questioned about the schedule for the launch of its electric Compact Crossover, Zhang responded that the Omoda 5 EV production is anticipated to begin in China in September.
After that, there will be a waiting period before the formal launch while homologation and testing are carried out for the Malaysian market.
Zhang demonstrated two all-electric models scheduled for release in China soon this year and how they may make it to Malaysia. This demonstration aimed to bring the company’s plans for electric vehicles (EVs) in Malaysia more clearly into focus.
The company focuses on a luxury sedan and a large sport utility vehicle (SUV), which will range up to 800 kilometers and be built under the Exeed luxury nameplate.
The four-door sedan is equipped with the most recent advancements in battery technology, interconnection, and UI. It features a sleek look with a coefficient of drag of 0.21, airline-style reclining rear seats, and a customizable center console that drifts forward and back.
Zhang admitted that getting into a more premium sector in the Malaysian market would take some time to nurture the market and create familiarity with Chery’s products.
Considering the company’s plans to enter the Malaysian market, he disclosed that the organization is finalizing the confirmation of a production partner in Malaysia for the Tiggo 8 and Omoda ICE variants.
He did not, however, consent to reveal the partner’s name or the manufacturing facility’s location. There are rumblings that the factory is somewhere in the country’s north.
Chery to enter PHEV into the Malaysian market
Zhang also curiously stated that Chery was willing to incorporate Plug-in Hybrid Electric Vehicles (PHEVs) into the Malaysian market and contemplated creating variants with more than 100 kilometers (km) of pure electric range.
He pointed out that this would make it possible for the majority of Malaysians to complete their daily commutes using almost exclusively electric power. According to the available data, the typical daily distance a Malaysian drive is between 70 and 80 kilometers.
Nevertheless, he admitted that launching PHEVs with large batteries might involve more in-depth research. Their research should examine any incentives the company can obtain to make the product commercially viable.
While battery electric vehicles (BEVs) are exempt from paying import duties or road taxes, hybrid vehicles are no longer eligible for government assistance.
Zhang predicted that pricing and product differentiation would be critical considerations for bringing PHEVs into the market.
Currently, only premium brands are offering plug-in hybrid electric vehicles (PHEVs) in Malaysia because of the greater cost and complexity of the setup of the twin power plants.
Chery will likely price its products competitively against comparable products from Japan and South Korea, which might price them out of the PHEV market.
The advancements in the automotive market in China, where New Energy Vehicles (NEV) make up almost 40 percent of the total industry volume, are one of the reasons Chery is pushing for PHEVs in Malaysia. If so, this would explain part of the company’s motivation.
Since this world moves toward electric vehicles (EVs), numerous markets anticipate an increase in demand for hybrid and plug-in hybrid electric vehicles (PHEVs) as buyers attempt to make sense of the new technology and match it with their level of risk aversion, practical considerations, available budget, and available charging infrastructure.
When asked about the electric vehicle market in China, Zhang responded that by the year 2025, fifty percent of the market would be comprised of BEVs. That percentage would approach a close saturation point of seventy-five percent by the year 2030.
It’s a rough timeline, but it is definitely by present trends, as 10% of China’s total car sales are now electric vehicles, and those sales can rise by at least 50% this year.
Chery belongs to the Top 20 automakers in China
According to Zhang, it is becoming increasingly difficult to find Chinese purchasers who are not at least contemplating the purchase of a BEV for their subsequent purchase.
“If you say that your next vehicle will be an ICE car, people may look at you strangely as someone who is backward.”
Executive VP of Chery International, Charlie Zhang
Earlier, Zhang displayed videos that were digital renderings of the new electric vehicle and the new factory that would be responsible for its production.
The factory has a high level of automation and can function without jigs. As cars become more structured by their software and functionality, Chery is also heavily investing in chip design, which the company says will be very significant.
His viewpoint is consistent with that of others who believe that the automotive industry is on the verge of being shaken up as a result of a fundamental shift in the manner in which people use automobiles, namely their transformation from a simple means of transportation into a mobile living space that can perform multiple functions and is connected to the outside world.
In addition, he thought that autonomy would be an essential service in the not-too-distant future, with owners having the option to subscribe to the capability for a predetermined time when it was helpful and turning it off when they didn’t need it.
Although Chery is essential in China’s electric vehicle (EV) market, the company is not currently one of the most significant players. As shown by data from the China Association of Automobile Manufacturers, the company produced more than 67,000 NEVs, all pure electric and plug-in hybrid models, in 2020, which placed it in the top 20 among all Chinese carmakers.
It is behind competitors such as BYD, SAIC, and GAC, which sold more than 100,000 new energy vehicles in 2020.
Despite this, Chery has been investing in electric vehicle technology and broadening its product lineup to secure a larger portion of China’s expanding electric vehicle market.
Chery’s Level 4 autonomy
Chery has set an optimistic goal for itself to achieve Level 4 autonomy within the next year, but achieving this goal is possible.
Chery has been making significant investments in the development of autonomous driving technology, joining several other major automakers and technology companies in their efforts to achieve Level 4 autonomy within the next few years.
However, it is essential to remember that Level 4 autonomy presents a sizeable technological obstacle. Many regulatory and safety concerns must be resolved before completely autonomous vehicles can be used on public roads.
It is still being determined whether Chery will be able to attain Level 4 autonomy by 2019. Still, the fact that the company has invested in the technology is an encouraging indication of the future of autonomous driving.
See Also:
- Chery to introduce the Omoda 5 SUV with EV, ICE options in UK next year
- CPCA: Top-selling vehicles and automakers in China in February
- China: Sales of plug-in vehicles reached almost 6 million in 2022
- The upcoming BYD Seagull – Ocean series lineup
- Global plug-in electric car sales rose by 55% in October 2022
