Chery just launched the Omoda and Jaecoo brands and here’s why.
Late last year, Chery launched the Omoda 5 – a revolutionary new product that put design first. Under the hood it was modern and slightly upmarket too. In Russia, where Chery’s market share is higher than any other non-national make at 12.3%, Omoda has already been split off into a sub-brand of its own. It has its own showrooms and design aesthetic. The experiment there was a success and now Chery wants to not only bring the Omoda sub-brand to the world, but to also introduce yet another sub-brand called Jaecoo.
Omoda & Jaecoo (O&J) Will Tackle A New Market Segment
According to Chery International’s President Zhang Guibing, two new segments are emerging which he calls customers who are part of the “Fashion Elite” and “Modern Lifestyle Of Health And Sustainability”. These are more affluent customers who are not traditional and are quite extroverted and willing to try new things that suit their lifestyles. Omoda and Jaecoo will be targeting those customers. This growing sub-segment of customers will represent 21% of the total industry volume of 66 million customers by 2030. If O&J can capture just 10% of that market share by 2030, they’re confident they can sell 1.4 million cars by the time 2030 rolls around.
Bringing NEVs Into The Picture
These two brands will have products that can adopt NEV technology, including hybrid (HEV), plug-in hybrid (PHEV), battery electric vehicle (BEV) and range extender electric vehicle (REEV) setups. They’ll also be high-tech and have strong brand stories and easy-to-identify design languages.
Projected Success
On its own, the Omoda C5 (aka Chery Omoda 5) SUV is projected to sell something like 150,000 units in 2023. With the introduction of the Omoda C5 EV, the Omoda brand will likely sell 200,000 units this year. O&J is expected to sell 400,000 units in 2024 once Jaecoo models start being shipped.
Over the next 3 years, Chery expects there to be at least 7 models on offer across the O&J brands. For Omoda, a C3, C7 and S5. For Jaecoo a J5, J7 and J9. Each of these will have multiple powertrain configurations.
Omoda & Jaecoo Brand Identities
Omoda’s brand direction is headed by Steve Eum, VP & GM of Design for Chery in China. He is an industry veteran with decades of experience under General Motors, Hyundai Motor America and Ford. Omoda’s name comes by combining ‘optimistic’ or the essential nature of ‘oxygen’ with ‘modern’. The brand is presented as ‘Art in Motion’ and is aimed at customers who want to adapt fashion and virtual elements into their real lives. Their cars are aimed individuals with a health and sustainability focused lifestyle.
Jaecoo’s brand direction is headed by Chris Rhoades, Head of Design of Jaecoo Europe. He has experience working as a designer with Mercedes-Benz. He says Jaecoo is a brand that promotes the finer things in life. The target market of Jaecoo are high income individuals who highly driven and looking for fashionable trends. The name is an amalgamation of ‘Jäger’ (hunter in German) and Cool. Jaecoo’s design language is reminiscent of Range Rover with an upright angular look.
