At the recent Chery Technology Day in Wuhu, the Chinese car company explained its global strategy as it ramps up its export business. 

The nearly two-hour-long set of presentations was so detailed and exhaustive that you'd imagine you were sitting in a board presentation or a marketing sign-off meeting. But it made sense to show it to the 600 or so Chery-brand users and media in attendance. It was a captive audience if ever there was one.

El Plan

One key observation we made was how Chery seems to have a good grasp of the markets it is playing in. This could give us a clue as to why its newest brands - Omoda and Jaecoo, are well-positioned to make a positive impact once they arrive in the country. Let us explain.

Omoda and Jaecoo are the Chery Group’s spinoff brands. Omoda was born out of Chery’s modern and chic crossover model while Jaecoo is being positioned as a more premium line of crossovers higher in design quality, fit, and finish than even the Chery brand.

ALSO READ: First Omoda 5 "unboxed" in the Philippines

In a set of slides presented by Zhang Guibing, General Manager of Chery International, the brand showed how it sees global markets evolving in the next few years.

First, Zhang highlighted Chery’s growing number of exports in the last three years. With its target of sending off 800,000 units by the end of 2023, Chery is poised to be one of the biggest automotive exporters from the Mainland. 

Chery claims it already has three million users worldwide spread across all its brands, which also include the high-end Exeed, the more affordable Jetour, and the more sedate and family-oriented Chery.

But what intrigued us is how Chery is counting on population trends and demographics in designing, engineering, equipping, and, indeed, branding its cars.

According to Zhang, by 2030, there will be a billion people who will be aged 65 and above. In the same presentation, he also acknowledged that a growing percentage of the population will be younger and more individualistic. As such, their interests will be different from the traditional car buyers we have seen over the past few decades. 

In the same breath, he says that the 15-64 year old segment will be the biggest number in the next decade. This demographic is more concerned about having what marketing folks call LOHAS or Lifestyle of Health and Sustainability. These are the people who value well-being and environmental considerations with their lifestyle choices, and this includes cars.

There's logic to it all

And this is why the Chery Group is creating alternate brands and identities under its umbrella. By positioning specific brands towards a target demographic, it is able to address the needs of each with products and feature sets that cater to their specific wants, desires, and needs.

In the case of Omoda, its lineup will consist of crossovers that are, shall we say, unconventionally designed. The Omoda 5, for example, has a modern fastback twist in its profile, unlike most boxy crossovers in the market today.

Jaecoo, on the other hand, is focused on providing a higher level of quality when it comes to design, materials, and performance. 

We’ve driven the Jaecoo 7 in Wuhu recently, and it felt as solid as any Japanese-branded crossover as we drove it on an offroad track. It has all-wheel drive and the accompanying modes to maximize it. Plus, its interiors are spot-on premium in terms of fit and finish.

There’s no denying that Jaecoo’s design direction reminds us of the Range Rover Velar and Evoque. And that’s likely the brand’s intention here. But the execution doesn’t just end in design, as Jaecoo shares the same platform and hardware with other Chery models that have been refined over the years. It’s just that Jaecoo, and by extension, Omoda, have their feature sets tweaked further to relate to their target audience. 

This is also why Chery is spending R&D money on new technologies and services such as Battery EVs, Plug-in Hybrid and more efficient powertrains, CHeryZDrive autonomous driving, AI, and even a new Cherylion Operating System for its brands, as well as ride-sharing and used car businesses.

#SANAOL

It is interesting to see one car company have the resources and bravado to actually spend money on creating new brands. While Western carmakers have struggled to keep their identities intact over decades, Chery is banking on its research about market trends to tailor-fit and build all-new brands from the ground up to address their diverse audiences' needs. 

Both Omoda and Jaecoo are upcoming Chery Group brands that are geared towards the more individualistic set of the market.

Omoda is for the 30s to mid-40s who are trendy and more fashion-oriented. With Jaecoo’s more premium finish and subdued lines, its models are for those who are willing to spend to make a statement.

Time will tell if the Chery Group’s outlook and investment in creating new brands under its wing will pay off. For now, we will just appreciate the meticulous attention to detail the people at Chery International put into their presentation, something we hope to see in their brands' cars, too.