Chery Plans To Construct A New Automobile Production Facility In Vietnam

Key Highlights

• Chery invests $800 million in the Vietnam EV plant.

• Joint venture with Geleximco for production.

• Focus on Chery's Omoda and Jaecoo models.

• Plant capacity targets 200,000 EVs annually.

• Construction starts in Q3 2024, with completion by Q1 2026.

• Imported EVs to Vietnam by the end of 2024.

• Plant signifies Chery's global EV market ambition.

Chery, the Chinese carmaker, is poised for significant growth in Southeast Asia, with plans to invest $800 million in a new electric vehicle (EV) manufacturing facility in Vietnam. This move underscores Chery's status as the first Chinese EV manufacturer to establish a dedicated production plant in the region.

Partnership With Geleximco

The Vietnamese trade ministry verified the announcement after Chery's Omoda & Jaecoo unit and Vietnam's Geleximco signed a joint venture deal.

This collaboration combines Chery's EV technology know-how with Geleximco's strong grasp of the Vietnamese market. The selected site for the Chery Vietnam plant, located in the coastal province of Thai Binh, provides logistical benefits and access to a skilled labor pool.

New Facility For Omodo & Jaecoo Brands

The Chery Vietnam facility will specialize in producing Chery's Omoda and Jaecoo electric vehicle models, which are not currently offered in Vietnam. These models are anticipated to attract considerable attention from Vietnamese customers seeking sustainable transportation options.

Production Capacity

Chery's new Vietnam plant aims to be a major player, with plans to produce up to 200,000 electric vehicles annually. This capacity highlights the increasing demand for environmentally friendly transportation options in Vietnam and across Southeast Asia.

Plant Construction Details

The Chery Vietnam production plant is set to start construction in the third quarter of 2024, with a phased approach aimed at achieving full capacity smoothly. The first phase is anticipated to finish by the first quarter of 2026, paving the way for extensive electric vehicle manufacturing.

Chery EVs In Vietnam

Before the Chery Vietnam production plant is finished, Vietnamese consumers can still enjoy Chery's electric vehicles. By the end of 2024, the company intends to introduce two electric vehicle models through imports, providing a glimpse of future technology and innovation.

Chery’s Global Plans

The Vietnam production plant is a key part of Chery's global expansion strategy, complementing its presence in Europe and potential plans for a plant in Italy. This investment highlights Chery's dedication to becoming a major contender in the worldwide electric vehicle market.

Verdict

Chery's investment in the Vietnam production plant signals a significant milestone in its global expansion, solidifying its presence in Southeast Asia and showcasing its commitment to leading the electric vehicle market worldwide. With plans for large-scale production and strategic partnerships, Chery is poised to make a significant impact in Vietnam and beyond, offering eco-friendly transportation solutions to meet the growing demand in the region.

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