Chinese automaker Chery is revving up its electric vehicle (EV) ambitions in Southeast Asia with a massive new factory planned for Vietnam. This $800 million investment marks a significant move for Chery, making them the first Chinese EV manufacturer to establish a production facility in the fast-growing Vietnamese market.
The joint venture between Chery’s Omoda & Jaecoo sub-brand and Vietnamese conglomerate Geleximco will see a new plant constructed in the coastal province of Thai Binh. This state-of-the-art facility boasts a projected annual production capacity of 200,000 vehicles once fully operational. The initial phase of construction is slated for completion in the first quarter of 2026, with production focused on Chery’s OMODA and JAECOO electric car models.
While the factory ramps up, Chery isn’t waiting to tap into the Vietnamese market. The company plans to introduce two electric vehicle models through imports by the end of 2024. This early entry strategy demonstrates Chery’s commitment to establishing a foothold in Vietnam before the new factory comes online.
This move by Chery is particularly interesting considering the presence of China’s BYD, the world’s leading EV manufacturer, who has also expressed interest in setting up a factory in Vietnam. While BYD’s plans appear to be on hold for the moment, Chery’s decisive action positions them as a frontrunner in the race to capture a share of Vietnam’s burgeoning electric vehicle market.
For Vietnamese consumers, Chery’s arrival signifies increased options and potentially more competitive pricing in the EV segment. The initial imported models expected later this year include the Omoda C5 and E5, followed by the Jaecoo 7 and its plug-in hybrid variant, the Jaecoo 7 PHEV, arriving in the fourth quarter.
This strategic partnership with Geleximco strengthens Chery’s position in Vietnam. Geleximco’s established presence and market knowledge will undoubtedly prove valuable as Chery navigates the Vietnamese automotive landscape.
Chery is no stranger to the Vietnamese market. They previously attempted to establish a foothold in 2009 with the QQ3 model, but it failed to gain significant traction against established Japanese and South Korean competitors. This new venture, however, represents a fresh start with a focus on the rapidly expanding electric vehicle segment. Chery’s experience as China’s top car exporter for 21 consecutive years, coupled with their commitment to EVs, suggests they may be better equipped to succeed in Vietnam this time around.