The History of Chery Holding Group (Chery, Exeed, iCar, Jaecoo, Jetour, Kaiyi, Karry, Lepas, Luxeed, Omoda, Rely, Riich, Soueast)

Brand

China’s Multi-Brand Automotive Challenger

Chery Holding Group has grown from a small, state-backed startup in the late 1990s into one of China’s most ambitious global automotive exporters. Known for its aggressive international expansion, wide portfolio of sub-brands, and rapid adoption of new technologies, Chery represents a different model of automaker development compared to long-established Western and Japanese companies. Its story is defined by experimentation, government support, early struggles with quality perception, and a relentless push into emerging markets.

Founding and Early Background (1997–2003)

Chery was founded in 1997 in Wuhu, Anhui Province, China. Unlike many automakers founded by entrepreneurs, Chery originated as a state-backed industrial project led by the Wuhu municipal government. Its purpose was to stimulate the local economy and build a domestic automotive manufacturing base.

The company’s early leadership included engineer and executive Yin Tongyue, who later became chairman and a central figure in Chery’s development. Yin had previously worked at First Automobile Works (FAW), one of China’s “Big Four” automakers, where he gained experience in automotive engineering and manufacturing. His technical background helped shape Chery’s early emphasis on in-house engineering rather than relying entirely on foreign joint ventures.

Chery began operations without an official license to sell cars nationally, a major regulatory hurdle in China at the time. To overcome this, the company initially partnered with SAIC Motor, which allowed Chery to sell vehicles under SAIC’s license. This arrangement lasted until 2001, when Chery gained independent approval to operate.

Early Growth and Export Focus (2003–2010)

Chery distinguished itself early by targeting export markets. While most Chinese automakers focused domestically, Chery aggressively entered regions such as the Middle East, Latin America, Eastern Europe, and Africa.

By 2005, Chery had become China’s largest passenger car exporter. Its vehicles were affordable, simple, and designed for markets where cost sensitivity outweighed brand prestige. Models like the QQ city car gained popularity due to their low price and practicality.

However, the company faced serious challenges:

  • Intellectual property controversies (mid-2000s): Chery’s QQ was accused of copying the Daewoo Matiz, leading to disputes with General Motors. While no major legal ruling crippled Chery, the controversy damaged its reputation internationally.
  • Quality concerns: Early Chery vehicles were often criticized for inconsistent build quality and safety standards. This limited acceptance in developed markets.

To address these issues, Chery invested heavily in R&D, hiring international engineers and establishing design centers abroad.

Expansion into Sub-Brands and Segmentation (2010–2018)

As China’s automotive market matured, Chery began launching multiple sub-brands to target different segments.

Core and Early Sub-Brands

These early attempts at premium branding struggled because Chery had not yet established a strong reputation for quality.

Joint Ventures and Partnerships

Chery formed partnerships to improve technology and credibility:

  • Chery-Jaguar Land Rover (2012–present): A joint venture with Jaguar Land Rover (JLR) to produce vehicles in China. This helped Chery learn premium manufacturing standards.
  • Collaboration with suppliers like Bosch and AVL strengthened engineering capabilities.

Modern Brand Portfolio and Global Strategy (2018–Present)

From 2018 onward, Chery restructured its brand architecture and launched a new wave of globally oriented marques.

Key Brands

  • Exeed (2018–present): Positioned as a global premium SUV brand competing with mid-tier international marques.
  • Jetour (2018–present): Focuses on affordable SUVs and crossovers with lifestyle branding.
  • Omoda (2022–present): Designed for younger, design-focused buyers, especially in export markets.
  • Jaecoo (2023–present): Targets rugged SUV segments with upscale positioning.
  • iCar (2023–present): Focused on electric vehicles with a tech-forward identity.
  • Luxeed (2023–present): A joint brand with Huawei emphasizing smart vehicles.

Additional Brands

  • Kaiyi (2014–present): Originally a Chery subsidiary, later partially sold to Sichuan Yibin Industrial Development Group.
  • Soueast (1995–present): Chery took control of this brand in the 2020s after restructuring from earlier joint ventures.
  • Lepas: Limited public information; believed to be part of Chery’s evolving brand strategy.

This multi-brand approach allows Chery to compete across price points and regions simultaneously.

Mergers, Acquisitions, and Ownership

Chery has remained primarily state-owned, controlled by local government entities in Wuhu. It has not been fully bought out by another automaker.

However, it has engaged in partial sales and restructuring:

  • Kaiyi partial sale (2018): Majority stake sold to Sichuan Yibin Industrial Development Group.
  • Soueast restructuring (2020s): Chery assumed control after Mitsubishi’s withdrawal from joint operations.

These moves allowed Chery to streamline its portfolio while retaining core control.

Manufacturing and Operations

Chery operates multiple manufacturing plants in China, including major facilities in Wuhu, Dalian, and other cities. It also has overseas assembly plants in countries such as Brazil, Egypt, and Russia.

The company emphasizes vertical integration, producing engines, transmissions, and increasingly batteries in-house. Its factories incorporate automation and flexible production lines capable of building multiple models.

Racing and Motorsport Involvement

Chery has had limited involvement in global motorsport compared to Western brands. However, it has participated in:

  • Rally events in China and Asia
  • Promotional off-road competitions for SUV branding

Motorsport has not been a central pillar of its identity.

Challenges and Turning Points

1. Quality and Reputation Issues (2000s)

Early criticism of safety and reliability limited global acceptance. Chery responded by investing in R&D and improving manufacturing standards.

2. Failed Premium Brands (2009–2013)

Rely and Riich failed due to weak brand recognition. Chery later corrected this with Exeed and Luxeed, which launched with better positioning and technology.

3. Global Competition

Facing strong competition from established automakers and newer Chinese EV brands, Chery shifted toward electrification and smart vehicles.

Marketing Strategy and Global Expansion

Chery’s marketing strategy emphasizes:

  • Value for money: Competitive pricing in developing markets
  • Localization: Building factories and partnerships abroad
  • Digital branding: Especially for Omoda and Jaecoo
  • Technology partnerships: Collaboration with Huawei for smart features

Major campaigns have focused on global launches of Omoda and Jaecoo, positioning them as international brands rather than purely Chinese products.

Notable Vehicles by Brand

Chery

Exeed

Jetour

Omoda

Jaecoo

  • J7 (SUV)

iCar

Luxeed

Karry

Kaiyi

  • E5 (sedan)

Soueast

Rely

  • V5 (van)

Lepas

  • Limited confirmed models publicly available

Best-Selling Model

The Chery Tiggo 8 is widely considered the company’s most successful model. It combines affordability, space, and modern features, making it highly popular in export markets.

Sales and Market Presence

  • Global sales: Chery surpassed 1.8 million vehicles annually by the mid-2020s.
  • Exports: Consistently ranked as China’s top passenger vehicle exporter for many years.
  • U.S. sales: Chery currently has no direct retail presence in the United States, so official U.S. sales figures are effectively zero.

U.S. Consumer Reception

Although Chery has attempted entry into the U.S. market in the past (notably around 2007–2008), plans were delayed due to regulatory, quality, and dealership challenges.

American consumers generally have low familiarity with the brand. However, perceptions are slowly changing as Chinese automakers improve quality and expand globally.

What Makes Chery Different

Chery stands out for several reasons:

  1. Export-first mindset: Unlike many Chinese automakers, it prioritized international markets early.
  2. Multi-brand strategy: Covers nearly every segment from budget to premium EVs.
  3. In-house engineering: Greater independence compared to joint-venture-heavy competitors.
  4. Rapid adaptability: Willingness to abandon failed brands and relaunch new ones quickly.
  5. Tech partnerships: Collaborations with companies like Huawei for smart vehicles.

Current Status and Future Outlook

As of 2026, Chery Holding Group remains active and growing. It is investing heavily in:

  • Electric vehicles
  • Autonomous driving technologies
  • Global brand expansion (especially Omoda and Jaecoo)

The company’s future depends on its ability to:

  • Enter developed markets like the U.S. and Western Europe
  • Maintain quality improvements
  • Compete with both legacy automakers and emerging EV startups

From a small municipal project in 1997 to a global automotive exporter, Chery Holding Group has followed an unconventional path. It faced early criticism and setbacks but adapted through technological investment, brand restructuring, and aggressive international expansion.

Today, Chery is not just a Chinese automaker—it is a global contender experimenting with new ways to build, brand, and sell vehicles in a rapidly changing industry.

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