Chery renews push to enter the US market, open to partnering with an American automaker

Chery executives restate US interest

Chery's international leadership has again put the United States on the company's wishlist, with Zhang Guibing, president of Chery International, telling Australian media including CarExpert during a visit to the company's Wuhu headquarters that limited competition in the US carries consequences for prices and the pace of development. He pointed to how vehicle technology has changed in Australia and Europe, and questioned how the US market would compare in five to 10 years. ¹

"Five years later, 10 years later, if there is not any good competition inside, so I think maybe outside of America all the cars are completely different, and maybe the US is still a very old car," Zhang said, according to CarExpert. He also cited average US car prices of about US$60,000 that journalists had raised with him, arguing that without competition "the customer need to pay more money". Kelley Blue Book's latest figures put the average US new-vehicle transaction price at US$50,562 (about A$72,000) in September 2026, up 0.7 per cent year on year. The spread across body types was wide: compact SUVs averaged US$37,614 (about A$53,600) while full-size pickups averaged US$67,573, and Kelley Blue Book attributed the modest annual increase partly to a greater share of sales in cheaper segments such as small SUVs, compact cars and smaller pickups. ¹

Separately, Chery Vice President Charlie Zhang told Reuters on October 21, 2026 that the company is open to potential technology partnerships with US automakers as it explores options to enter the American market, without elaborating on the kind of partnerships envisioned. Paul Tan's Automotive News carried the same Reuters interview, quoting the executive saying "we are very open to different options, even a potential partnership with American automakers". ³⁴

A 'China-free' workaround

Charlie Zhang told Reuters he was confident Chery could build a vehicle not reliant on Chinese hardware or software, saying: "Definitely from a technical point of view, we will be able to find a China-free solution in terms of hardware and software". The claim was reported by both Paul Tan's Automotive News and The Truth About Cars, the latter noting the pitch is effectively a legal workaround to US restrictions rather than an announced product or partnership. No partner has been confirmed, and The Truth About Cars reported that Detroit has so far shown little appetite for playing host. ⁴²

The Volvo exemption is the only working template cited in the reporting. The Truth About Cars, citing China analyst Wang He, notes Volvo secured a written exemption from the Department of Commerce after making commitments on corporate governance, technical architecture and data security, with its US-imported cars keeping Geely-derived technical architecture to a very small share and nearly all US-bound vehicles built in Europe or the US itself. Polestar, despite building its 3 SUV in South Carolina, was denied authorisation to sell 2027 model-year vehicles in the US in June 2026, though it continues selling existing Polestar 3 and Polestar 4 stock and servicing US customers through its network. ²¹

The barriers in Chery's path

The policy obstacles are substantial. CarExpert reports the US raised its Section 301 tariff on Chinese-built electric vehicles to 100 per cent in 2024, while the Department of Commerce's Connected Vehicle Rule restricts certain Chinese and Russian software and sales by manufacturers with sufficient links to either country, with prohibitions applying from the 2027 model year and capable of covering US-built vehicles. The department cites national security risks including access to drivers' personal information and the potential for remote manipulation. ¹

Resistance is not limited to Washington. Car Dealership Guy reported in August 2026 that the American International Automobile Dealers Association has called for banning Chinese brands from selling or manufacturing vehicles in the US, with AIADA chairman Mike Darrow arguing such brands seek "total market domination". Car Dealership Guy also reported AIADA is backing legislation that would strengthen existing measures aimed at barring Chinese automakers and related entities — measures it said could also prohibit Mercedes-Benz from selling vehicles in the US. The Truth About Cars adds that six major US automotive industry groups jointly wrote to the federal government demanding it keep blocking Chinese automakers, and that bipartisan bills to ban Chinese automakers are moving through Congress. ⁶²

Even a partnership may not clear the hurdles. The Truth About Cars quotes Sun Kuo-hsiang of Taiwan's Nanhua University warning that switching brands, lining up US distributors, or shipping exports through Mexico or Canada "will not automatically bypass the restrictions", with deals involving acquisitions or certain investments also potentially drawing scrutiny from the Committee on Foreign Investment in the United States. ²

Canada as a staging ground

Chery's North American strategy currently runs through Canada. Ground News, summarising the Reuters reporting, says Chery plans a Canadian market debut in early 2027, leveraging a deal allowing imports subject to a 6.1 per cent tariff and a 49,000-unit quota that analysts suggest provides a staging ground for eventual US expansion. The Truth About Cars notes Wang He reads the sequence the same way: once Chery is established in Canada, where emissions and safety rules are essentially identical to America's, the next logical step is the United States. ³²

Chery already sells in Mexico, and The Truth About Cars reports it generates significant sales across Europe, the Middle East, Latin America and Southeast Asia under its own name plus the export-focused Omoda and Jaecoo badges. Car Dealership Guy also reported that Chery had recently agreed to invest US$75 million in KG Mobility Corp., a step in its openness to partnerships including distribution channels and brand-related collaborations. The outlet, citing Reuters, said Chery is open to sharing global production capacity and collaborating across manufacturing. ²⁶

The Truth About Cars notes Stellantis offers a cautionary precedent for partnering: it took a 21 per cent stake in Leapmotor within a venture it majority-controls, but then shelved a plan to build Leapmotor vehicles at its idled Brampton, Ontario plant. ²

Australian relevance and earlier statements

The US push intersects with Chery's Australian business. Chery chief engineer David Xianqiang Lu told CarExpert in July 2025 that "the Australian market can help us learn a lot about the USA market", citing towing requirements and the benefit of testing in Australia during China's opposite season. In September 2026, China was Australia's largest source of new vehicles with 42,358 deliveries, or 38.9 per cent of the market, while Chery delivered 4205 vehicles here, up 21.8 per cent on September 2025, and Omoda Jaecoo recorded 2310 deliveries. ¹

Zhang Guibing has flagged US ambitions without committing to timing before. Just Auto reported in May 2026 that he told reporters at the company's headquarters: "When we find a good and suitable time in the future, we definitely hope to enter it", with any decision hinging on Chery's operational readiness and the regulatory environment. In the latest comments to CarExpert he acknowledged the obstacles — "it's a little difficult because of too many new regulations" — while maintaining interest: "I hope in the future, maybe we could find some good way and can come inside." No US launch date or model range has been announced. ⁵¹