Chery Positions Vietnam as a Key Automotive Manufacturing Hub in Southeast Asia, Alongside Malaysia

While OMODA and JAECOO have not yet officially sold vehicles in the Vietnamese market, their parent company, Chery, has had one of the longest teaser campaigns in the country, with their presence in the local media dating back to 2021. After more than three years of market research, the company officially announced that it would be bringing OMODA and JAECOO automobiles to Vietnam, and they partnered with Geleximco to build an automobile factory under these two brands in Thai Binh province. Most recently, a spokesperson for the company revealed that the Vietnamese car factory will be the main production hub for OMODA and JAECOO vehicles in the Southeast Asian market.

This is significant news as joining Chery’s network of mega-factories and the group’s extensive presence in the region presents a substantial opportunity for the local factory to conquer not only the domestic market but also the regional one. However, it’s important to note that Chery has also invested in a car manufacturing facility in Malaysia, in addition to the planned factory in Vietnam. The Malaysia factory is already operational and rolled out its first cars in June this year, while the Vietnam factory is still in the planning stages. The group has not disclosed specific details about the Malaysian facility, such as investment amount, size, or annual capacity. Nonetheless, a Jaecoo spokesperson confirmed that the facility is capable of single and double shifts and can be expanded according to local demand. The factory is intended for exports to the ASEAN region and can produce internal combustion, hybrid, and electric vehicles.

Chery has achieved success with OMODA and JAECOO automobiles due to their advanced manufacturing technology and global network of mega-factories. Chery’s domestic factories in China ensure a quality output for these brands, with a highly automated welding process (99.6%) and real-time quality monitoring at the Qingdao factory. The Wuhu New Energy factory, with its modern battery assembly line, guarantees the safety of the vehicles’ electrical systems. Additionally, the factories in Kaifeng, Henan, Yichin, and Sichuan support production capabilities and reinforce the product supply chain.

In the Southeast Asian market, Chery has chosen Malaysia and Vietnam as strategic locations for its global factory network. The upcoming factory in Hung Phu Industrial Park, Thai Binh province, with an expected investment of nearly VND 2,000 billion, will focus on producing OMODA and JAECOO vehicles. Construction is planned to commence in 2025.

Chery has also invested in automobile assembly plants in other parts of the world, such as Brazil, Latin America, and Turkey, to cater to local demands.

OMODA and JAECOO’s media representative affirmed that the construction of the Thai Binh factory underscores the company’s belief in Vietnam’s potential. The factory is expected to have an annual capacity of 200,000 vehicles, with a total investment of $800 million. Construction will begin in 2025 and is slated for completion in 2026. During the construction phase, OMODA and JAECOO will approach the Vietnamese market through imported completely built-up (CBU) units, with plans to launch in late 2024. The OMODA E5 crossover and JAECOO 7 will be the first models introduced. The brands have also signed agreements with 19 dealerships in Vietnam, aligning with their goal of establishing 20 dealerships by the end of 2024.