New Chinese car brands on hold for NZ market

In rapid time, Chinese carmaker Chery has launched three brands in New Zealand — Omoda, Jaecoo, and most recently its core Chery brand. And whilst Australia will soon gain two more brands from the Chery umbrella, New Zealand is a curlier question.

Lepas and iCar represent two rather different brands within Chery’s armada. The former is an aspirational premium brand that’s keen to capture young fashion-conscious buyers, whilst the latter is Chery’s off-roading arm. 

Lepas is slated to launch in Australia in Q3 of this year, whilst iCar is expected to follow suit early next year. But, don’t expect either brand to launch in New Zealand simultaneously. 

Speaking to CarExpert NZ, Chery Australia and New Zealand chief of operations, Lucas Harris, said that Chery’s primary focus for the time being is getting its opening trio of brands working well before expanding the tent to include Lepas and iCar.

“At the moment I think we're focusing really on making sure that we get both Chery and Omoda/Jaecoo humming along and doing what they need to do [in New Zealand],” said Harris.

“Then, probably within the next 12 months, we'll assess whether it's worth bringing Lepas and iCar here as standalone franchises.” 

Harris underscored that our market is considerably smaller than Australia’s, and that the Chery brand does not wish to compromise the three brands it already has in market by rushing the launch of two more.

“Part of the reason to be a bit cautious and that approach is that it is a smaller market. [...] If we want to have a great level of customer experience and customer service, we need to have dealers that are profitable,” said Harris.

“Splitting that retail environment up and demanding a lot of retail space can, if you're not careful, create an environment where a particular brand doesn't deliver a good profit outcome for dealers.

“I think we have to be very mindful of that, and that’s why we’re a bit more reserved here around bringing those brands, just to make sure that we do it in a sustainable way rather than throw everything at the wall and see what sticks.” 

That said, Harris still expects Lepas and iCar to arrive here eventually. “It will happen, it’s just a matter of making sure we’re considered about when exactly that happens,” he added.

The New Zealand market has been a volatile one for new cars in recent years, thanks in good part to the various changes and reversals around the country’s ‘Clean Car’ strategies, as well as changing governments. 

Rising fuel prices and a subsequent explosion in interest for fully electric cars looks set to jumble the market yet again, with the likes of BYD, Toyota and Tesla reporting big swings in consumer attitudes to electric vehicles. 

Whilst its line-up has yet to be formalised, Lepas is expected to launch in Australia with the mid-sized L8 plug-in hybrid (which shares its platform and Super Hybrid powertrain with the Chery Tiggo 7 and Jaecoo J7). The L4, L6, and three-row Lepas 9 are also being speculated for Australia.