Chery’s bold Entry into the Czech Market

Chery, a major player in the Chinese automotive industry, is aggressively pursuing expansion into the Czech Republic.Fresh off a year where they ranked among the top five domestic automakers in China and secured the top spot for exports,Chery is steadfast to make a splash in the European market. Their strategy involves a commitment to learning from established competitors and a focus on customer satisfaction.

We want to learn from the best.If it is a pity in the heads of customers, then from her. And then overtake it.
Chery Representative

From Wu-cha to europe: A Transformation in Automotive Design

While older Chery models might evoke memories of early Seat Toledo designs or attempts to emulate successful European and Japanese vehicles,the company’s current lineup,especially the tiggo series SUVs,showcases a significant evolution in design and quality. The Tiggo 8 and Tiggo 9 SUVs, such as, represent a leap forward, demonstrating Chery’s commitment to modern automotive engineering.

Aspiring Goals and Market Positioning

Chery’s ambitions extend beyond simply entering the Czech market. While aiming to become a market leader within five years might be overly optimistic, the company is setting a more realistic goal of breaking into the top ten within three years. This ambition mirrors the success of other Chinese brands like Ssangyong (now KGM) and MG,which have already disrupted the European automotive landscape.

We should be at least in the top ten within three years.
Chery Representative (anonymous)

this goal is ambitious, considering the current market dynamics. As of Q1 2025, Skoda holds the largest market share in the Czech Republic, followed by Volkswagen and Hyundai. Chery will need to overcome significant brand recognition hurdles to achieve its top-ten goal.

Learning from the Best: A Mantra for Success

Chery’s approach is rooted in continuous learning and adaptation. The company has invested heavily in understanding the European and Czech markets, sending representatives to gather insights from potential importers, sellers, and customers. This commitment to knowledge acquisition is further demonstrated through collaborations with companies like italian firm Dr Automobile and partnerships with brands like omoda, Jaecoo, and EBBRO.

Gathering Customer Feedback: A Data-Driven Approach

Chery is actively soliciting feedback from potential customers and partners. At a recent demonstration event in Wu-Ku, the automaker distributed questionnaires to gather insights on vehicle quality, competitive analysis, and other crucial aspects. This data-driven approach underscores Chery’s commitment to tailoring its products to meet the specific needs and preferences of the Czech market.

Strategic Partnerships and Market Entry Strategy

Unlike its direct distribution approach in Poland and Italy, Chery is seeking a local intermediary for the Czech market.This decision reflects the size and specific characteristics of the Czech automotive landscape. While a final contract with a major importer is pending,Chery aims to finalize the agreement and enter the market within the current year.

Prioritizing Customer Satisfaction: Warranty, Service, and Spare Parts

Chery recognizes the importance of customer satisfaction in the Czech market. In addition to competitive pricing, the company is committed to providing complete warranty coverage, readily available service, and a robust spare parts supply chain. This includes ensuring that dealers maintain adequate inventory and offering express air transport for urgent parts requests.

We would like some parts to be available promptly. if there is an accident, perhaps right after leaving the car showroom, we would like to tell the customer, ‘Don’t worry with the car, you have it back in one or two days’.
Chery Representative

Expanding the Dealer Network: Accessibility and Convenience

Chery aims to establish a dealer network that prioritizes accessibility and convenience for customers. While the exact number of dealerships and service centers is still under consideration, the company’s ideology is to minimize travel time for customers seeking sales or service support.

The Tiggo Lineup: A Diverse range of SUVs

Chery’s initial offering in the Czech Republic will consist of four Tiggo SUVs: the compact Tiggo 4 (hybrid and plug-in hybrid), the mid-size Tiggo 7 (gasoline and plug-in hybrid), the large Tiggo 8 (gasoline and plug-in hybrid), and the luxury Tiggo 9 (plug-in hybrid). The Tiggo 8 and Tiggo 9 will also be available in seven-seat configurations.

Competing in a Crowded Market: The Tiggo 7’s Value Proposition

Chery believes the Tiggo 7, a 4.55-meter SUV, will be a strong competitor in the Czech market, challenging established models like the Toyota RAV4, Hyundai Tucson, and Škoda Karoq. The company emphasizes the Tiggo 7’s spaciousness and competitive pricing, although specific pricing details remain undisclosed.

Future Plans: Electric Vehicles and Portfolio Expansion

Chery is already planning for future expansion,with additional models,including a sub-Tiggo 4 SUV,slated for release next year. The company is also exploring electric vehicle options, although the recent EU tariffs on Chinese EVs present a challenge. Furthermore, Chery is considering introducing other brands from its portfolio, such as ICAUR (small electric off-roaders) and Luxeed (luxury electric vehicles), depending on the success of the Tiggo lineup.