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Chery to bring overseas brands Omoda and Jaecoo to China to boost domestic sales

Chery is preparing to introduce its overseas-focused brands Omoda and Jaecoo to the Chinese market, aiming to reverse a domestic sales slump that saw China account for only 30% of its global deliveries in the first eight months of 2026.

Chery is planning to bring its overseas-focused sub-brands Omoda and Jaecoo to the Chinese market, according to a report by Huxiu. The move comes as the automaker's domestic sales have fallen sharply, with overseas markets now accounting for more than 70% of its total volume.

From January to August 2026, Chery Group sold 1.9145 million vehicles globally, of which 1.3433 million were exported, leaving only 571,200 units sold in China. That imbalance has prompted Chery to consider introducing its successful overseas brands back home, with a marketing team reportedly being assembled for the launch. The new brands are expected to be positioned in the premium segment, and Chery has already contacted professionals who previously worked for luxury brands such as BBA (BMW, Mercedes-Benz, Audi), according to Leiphone.

What are Omoda and Jaecoo?

Omoda and Jaecoo are relatively unknown in China because they have never been sold there. Omoda was launched in 2021 as a global car line aimed at young, fashion-conscious buyers seeking their first car. Jaecoo followed in 2022, targeting the hardcore off-road segment with a focus on outdoor capability and premium positioning. Both share Chery's technology platform but have distinct identities. In 2024, Chery consolidated them into the O&J international business unit, making it the company's fifth brand alongside Chery, Exeed, Jetour, and iCAR.

O&J has been a hit overseas. In the UK, Chery topped the monthly sales chart in August with 8,618 registrations, ahead of Volkswagen, Ford, and BMW, according to the Society of Motor Manufacturers and Traders (SMMT). Three of the UK's top ten best-selling models in August were from Omoda and Jaecoo. In Europe, Chery's registrations reached nearly 123,000 units in the first five months of 2026, up 316% year-on-year, with O&J contributing 82,682 units across ten countries—over 70% of Chery's European total. Globally, O&J surpassed 1 million cumulative sales in April, just three years after the brand's debut.

Why bring them back?

Chery's domestic performance has been underwhelming. In the first half of 2026, the group sold 1.3575 million vehicles, 70% of which went overseas. In August alone, Chery sold 280,000 units, with exports of 196,000 (up 52.1% year-on-year) versus domestic sales of just 84,000. By the end of August, Chery's cumulative exports exceeded 7.18 million vehicles, making it the first Chinese automaker to surpass 7 million exported units and maintaining its top position in Chinese passenger car exports for 23 consecutive years.

But domestic sales fell to 410,000 units in the first half, down from about 710,000 a year earlier. Revenue from China dropped to 44.312 billion yuan (about $6.24 billion) in H1 2026 from 76.055 billion yuan (about $10.71 billion) a year earlier, while overseas revenue surged 51% to 98.968 billion yuan (about $13.94 billion), now accounting for 69.1% of total revenue. Among Chery's brands, only the main Chery brand grew (up 25.2% to 918,400 units), while Exeed fell 44.9%, Luxeed dropped 56.9%, Jetour declined 13.6%, and iCAR rose just 2.0%.

The decision to bring O&J to China aligns with Chery chairman Yin Tongyue's stated ambition to move upmarket and stop competing on price alone. However, whether overseas success can translate into domestic competitiveness remains to be seen, as pricing, consumer preferences, and competitive dynamics differ significantly between markets. Earlier, Chery registered a new energy brand called “Yueji” in China, positioned above Exeed, but its launch has been repeatedly delayed. It is unclear whether Yueji could serve as the vehicle for O&J's entry into the Chinese market.