Chinese Auto Giant Chery Wants To Crack The U.S. Market. It Thinks Detroit Could Help

Despite a ban on cars made with Chinese hardware and software, Chery thinks a U.S. entry could be possible.

Photo by: Jaecoo

By: Kevin Williams

Oct 25, at 10:00am ET

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Chery told Reuters that it still sees a path toward selling cars in the U.S. despite the connected car ban, possibly through partnering with a U.S. automaker.
No specific details were given as to which automaker it would partner with, or what the partnership could look like.
Chery has plans to enter Canada next year.

Chinese Cars are a no-go for the U.S., effectively. Any car that uses software or hardware made by a Chinese company is subject to the connected cars ban and can’t be sold in the U.S. Just ask Polestar. Still, the U.S. car market is huge, the second largest behind China. Some Chinese automakers still want to find a way into such a large market, especially one in dire need of inexpensive options. Chery, for one, isn't giving up.

According to reporting from Reuters, the company is open to trying different things to get access to the U.S. market. Vice President ⁠Charlie Zhang told Reuters that Chery is confident that it can reach the U.S. market and build a car that meets the data security laws.

"Definitely from a technical point of view, we will be able to find a China-free solution in terms of hardware and software,” Zhang told Reuters.

One way that could possibly be accomplished is through a partnership with American automakers. However, Zhang didn’t explain to Reuters what exactly that kind of partnership would look like for Chery.

Still, this is markedly different than what other Chinese brands have said with respect to the U.S. market. Some brands, like BYD and Geely, have been open about their desire to come to the U.S., even going as far as hosting American journalists to drive their product. Yet, these companies have been clear that right now isn’t the right time to sell here; the geopolitical tensions between the U.S. and China aren’t great. Car manufacturers that already operate in the U.S. are very much against Chinese cars coming here, and there’s more legislation proposed to stop any of them from trying at all. But this isn’t stopping Chery.

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Chery has an incentive to sell outside of China, though. While Chery’s sales performance in China has historically been mediocre, it has been one of the strongest-selling Chinese brands in export markets. Chery and its sister brands like Jaecoo, Lepas, Jetour, and iCar have shown surprising results. The Jaecoo 7 PHEV has been the UK’s best-selling new car for two different months this year. The consensus is that Jaecoo’s products are reasonably priced, feature-packed vehicles, something that resonates with buyers on a budget. Given that the U.S. market is starved for budget-friendly choices, Chery could do well if it figured out a way to sell here.

Although right now Chery’s plan for U.S. sales is vague, Zhang did tell Reuters that Chery plans to sell in Canada next year. They're getting closer to the U.S. market, but a true entry seems to be a ways off.