In March, the Chinese-made Jaecoo 7 crossover SUV became the UK's best-selling car, with 10,064 units sold, surpassing models from Ford, Nissan, and Kia. Manufactured by China's Chery, the vehicle's success underscores the rapid ascent of Chinese automakers in the European market.
The Jaecoo 7, a plug-in hybrid electric vehicle (PHEV), costs Chery approximately $25,000 to produce, compared to $33,000 for a comparable European SUV, according to consultancy Oliver Wyman. This cost advantage stems from economies of scale, shared platforms across brands, and significant state subsidies from the Chinese government.
Chery, founded in 1997 and partly state-owned, sold 2.8 million cars globally last year, exporting 1.3 million. The company aims to blend the innovation of Tesla with the scale of Toyota, and its aggressive push into Europe includes brands like Omoda and Lepas.
Industry observers note that Chinese car quality has improved dramatically. Steve Young, managing director of a London dealership, said vehicles at the Beijing auto show were of comparable quality to European models, with no flimsy fittings. Oliver Lowe, head of product for Omoda and Jaecoo UK, described the Jaecoo 7 as 'a steal' for consumers.
