Chery Partners with Japanese Giant AUTOBACS to Enter Japan in 2027 with New EV Brand

Chinese automaker Chery is expanding its global footprint once again. According to overseas reports, Chery Automobile has formed a strategic partnership with Japanese automotive retail giant AUTOBACS SEVEN to launch a new electric vehicle brand through a joint venture company called EMT (headquartered in Yokohama). The brand is scheduled to officially enter the Japanese market in 2027.

Key Highlights: Chinese Technology Meets Japanese Expertise

The collaboration stands out for its "strong-strong alliance" approach:

• Japanese-Bred Development: The joint venture EMT has recruited a large number of former engineers and technical experts from Honda and Mazda to lead R&D, ensuring the vehicles are finely tuned to suit Japanese driving habits and preferences.
• Chinese Core Technology: The new models will leverage Chery's advanced electric vehicle technologies, including sophisticated ADAS and efficient battery management systems.
• Production Strategy: Initial production will be based at Chery's Yueda plant in China to maintain price competitiveness, targeting the mass-market segment. The company plans to launch four models by 2029 and is exploring local production in Japan after 2030.

Channel Advantage: Tapping into AUTOBACS' Nationwide Network

Entering the notoriously difficult Japanese market is a major challenge for foreign brands. Through this partnership, Chery will utilise AUTOBACS' extensive nationwide retail and service network. The plan is to establish hundreds of sales and after-sales points within the first year, significantly reducing setup costs while addressing Japanese consumers' key concern — reliable after-sales support — by leveraging a well-known local brand.

Editor's Take

Chery's strategy for cracking the Japanese market — described as "Chinese Heart, Japanese Shell" — is both clever and pragmatic. This model of Japanese-led refinement combined with Chinese supply chain strength also carries significant implications for the Malaysian market.

As Chery continues to grow rapidly in Malaysia, any technological and handling improvements developed for the Japanese market (especially RHD-specific optimisations) are likely to benefit Southeast Asian models. For Malaysian buyers who appreciate Japanese-style driving dynamics, this development could significantly enhance Chery's future appeal.

Whether Chery can successfully establish itself in one of the world's toughest automotive markets remains to be seen. The first model's arrival in 2027 will be worth watching closely.