Chery's Omoda brand is already outselling Alfa Romeo, Honda, BYD in Spain

China's biggest car exporter, Chery, has set its sights on the European market, starting with the Omoda 5.

The company sold 2,553 Omoda 5s in the first half, mostly in its launch market of Spain, where the automaker has overtaken Alfa Romeo, Land Rover, Honda and Chinese rival BYD and is chasing Porsche in Europe's fifth largest market, according to figures from market analyst Dataforce.

This year Chery will also debut the Omoda volume brand in Italy, the U.K. and Poland. The Netherlands, Belgium, Sweden and some eastern European countries will follow.

In addition, Chery will launch its more premium Jaecoo brand in select European markets, including the U.K.

The Omoda 5 launch model is a compact SUV with a 1.6-liter turbocharged gasoline engine that is appealing to customers because of its price and its ample technology.

The car's launch price in Spain was €27,900, but that figure has dropped to €22,990, making it cheaper than many small SUVs.

The SUV's 187-hp combustion engine variant will be followed by a mild hybrid version, Chery said.

This year Chery will also launch an electric version of the same car equipped with a 61-kilowatt-hour battery that promises a range of 430 km (267 miles) under WLTP testing guidelines.

The electric motor's output is 204 hp, which helps the EV to accelerate from 0-100 kph in 7.6 seconds.

While no official price has been announced for the EV but in the U.K., country director Victor Zhang told Automotive News Europe the SUV is likely to start at about 33,000 pounds (39,000 euros).

In the European Union the electric model will be subject to an additional 20 percent tariff following the EU's decision to adjust for China's state subsidies for EV makers.

This year, Chery plan to start making the Omoda 5, both in its full-electric and combustion-engine versions, at a former Nissan plant in Barcelona, Spain, to help avoid the tariffs. Chery will later also produce its Jaecoo 7 there.

More to come

Chery said it will launch additional models, which will include hybrids and plug-in hybrids.

The Omoda 9 midsize SUV is due to launch early next year with a plug-in hybrid drivetrain, followed by the Omoda 7 compact SUV coming with BEV and PHEV options. The Omoda 3 small SUV with a hybrid drivetrain will compete against the Ford Puma and Nissan Juke when it arrives, Zhang said.

The Omoda 5 gasoline model has a seven-speed dual-clutch transmission as standard. Equipment includes two 12.3-inch digital screens, one located in front of the driver; keyless entry; and auto dimming headlights. It also has a range of assisted driving features including adaptive cruise control.

A higher spec version of the Omoda 5, which will be part of the Premium or Noble trim line depending on the market, comes with heated seats, a heated steering wheel and a 360-degree camera system to aid parking.

Customers that switch to Chinese brands expect lots of technology, Zhang said.

Chinese, and proud of it

"We have done some research and people think Chinese brands represent value for money, higher quality and higher technology. So, actually, I don't care too much if people think of us as a Chinese brand, I don't hide it," Zhang told Automotive News Europe at Chery's stand at the Goodwood Festival of Speed in England in June.

One Chinese feature that might disappoint European customers is the Omoda 5's 307-liter trunk, which is relatively small by European standards for a vehicle that is 4400-mm long. Chinese models often sacrifice trunk space to provide more legroom for passengers in the back seats.

Chery's multi-drivetrain approach is like that of MG, which is owned by China's SAIC. MG is Europe's No. 1-selling Chinese brand, with sales up 22 percent to 127,425 through six months.

The Omoda 5 will rival MG's new HS compact SUV, which comes with both combustion engine and PHEV powertrains. The current-generation HS starts at €21,440 in Spain, which could have caused Chery to lower the price of the Omoda 5 after its debut in the market.

MG model prices in Spain include discounts linked to a finance package, according to its website.

The Omoda brand is only used for exports. The name is derived from the "o" of oxygen combined with "moda" coming from the word modern.

Exports accounted for half Chery's global sales last year, when the company increased exports 101 percent to 937,148, according to company figures. Key markets include Turkey, Latin American and Russia.

Russia push

Chinese automakers have targeted Russia for exports since Western automakers pulled out of the country following Russia's invasion of Ukraine in 2022.

Zhang said customers were unlikely to care about its company's success in Russia. "I don't think it will do us big harm," he said.

Chery has been rapidly expanding its dealer network in Europe.

In Spain, Omoda has 45 locations and aims to boost that number to 80 in its "first phase of expansion," according to the company's website.

In the U.K. Omoda has 60 locations with 100 planned by year-end and 150 targeted for next year. Sales are via the traditional wholesale franchise model.

Chery has big plans for Omoda and its more premium Jaecoo brand, which launches toward the end of the year in the U.K. with the J7 PHEV SUV, which will rival the X3 rival.

"I hope in five years' time that we can get a similar market share as Kia [currently 6 percent of the U.K. market]," Zhang said. "That is quite challenging, but I think we need to aim higher, right? If your target is small, maybe eventually you get smaller."