Omoda, Jaecoo Become Independent from Chirey Mexico
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Omoda, Jaecoo Become Independent from Chirey Mexico

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Rodrigo Andrade By Rodrigo Andrade | Journalist & Industry Analyst - Tue, 03/21/2023 - 15:50

Chinese automaker Chirey announces that Omoda will start operating as an independent brand in Mexico, rather than just another model within Chirey’s portfolio, thanks to its commercial success in the country.

The launch of Omoda into the Mexican market is accompanied by Jaecoo, with both brands set to start operations in the country during 1H23. The brands are yet to announce their business plans, product development, distribution network and management team for their operations in Mexico, according to Noticias Autocosmos.

Additionally, both automakers announced a new central operating center in Wuhu, China. Omoda seeks to provide cutting-edge technology, connectivity, futuristic design and safety features through its “Art in Motion” design language.

Chirey announced the construction of its first assembly plant in Mexico in July 2022, as a part of the company’s global plan to position itself in Latin and North America. Chirey wants Mexico to be the core of its Latin bridge to North America; not only for the sale of automobiles but also for the planning of design, manufacturing and export of automobiles from Mexico to the neighboring region,” says Zhang Guibing, President, Chirey International as reported by MBN.

The Chinese firm plans to establish 40 dealerships across Mexico in the initial phase, while seeking to expand its network to more than 100 dealerships by 2030 and set up its assembly plant by 2026.

Chery’s Jetour will also make its global debut with two SUVs in April 2023, while the company also plans to invest US$1 billion in building an ICE and EV assembly plant, expected to be completed by 2024. The automaker is currently in talks with different state governments to determine the plant’s location.

Jetour will import some auto parts, particularly technological components from China, while the entire manufacturing network is developed. The company will work with suppliers such as CATL and Foton to establish itself as an automaker power hub in North America, as reported by MBN.

Chinese Automakers Bet to Impact Mexico’s Automotive Industry
The COVID-19 pandemic and subsequent semiconductor shortage led to a decrease in vehicle production volumes, which opened the door for new, lesser-known brands, such as SAIC, Chery and BYD, allowing these companies to enter the Mexican market. 

By 2023, Mexico's automotive market is expected to become more diverse, with traditional brands losing market share to newcomers who offer quality, value, innovation and technology in their vehicles, writes Fernando Enciso, Director Mexico, Grupo Surman.

Photo by:   linekslawek

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