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China’s Chery to invest US$800m in a Vietnam car plant.

ByYasmeeta Oon

Apr 19, 2024

China’s Chery to invest US$800m in a Vietnam car plant.

HANOI, Vietnam – In a landmark move that propels Vietnam further into the global electric vehicle (EV) landscape, Chinese automaker Chery has inked a partnership with local conglomerate Geleximco. The joint venture marks a significant $800 million investment into establishing Chery’s first manufacturing facility in Vietnam, and notably, the first by a Chinese EV maker in the country.

The venture brings together Chery’s Omoda&Jaecoo unit with Geleximco, setting sights on the coastal expanse of Thai Binh province for their ambitious project. This collaboration underlines a significant stride towards expanding the EV market footprint in Southeast Asia.

Key Details of the Joint Venture:

  • Location: Thai Binh Province, Vietnam
  • Investment: US$800 million (approximately RM3.8 billion)
  • Annual Capacity: 200,000 vehicles
  • Models to be Produced: Chery’s Omoda and Jaecoo electric models
  • Completion: First phase expected in Q1 2026
Phase One Launch Anticipated in 2026

With plans to roll out 200,000 vehicles annually, the factory will focus on producing the Omoda and Jaecoo electric models. As the construction gears up, expectations are set for the first phase to wrap up by the first quarter of 2026.

Upcoming Initiatives:

  • Imports: Ahead of the plant’s operational status, Chery plans to introduce two electric models in Vietnam, slated for release by the year’s end.
  • Global Expansion: Beyond its new venture in Vietnam, Chery has eyes on further international expansion, including potential manufacturing facilities in Europe and specifically Italy.

This strategic move not only strengthens Vietnam’s position in the electric vehicle industry but also signals Chery’s ambitious plans for global expansion. Meanwhile, China’s EV giant, BYD, also shows interest in the Vietnamese market, although recent reports suggest a possible slowdown in their plans.

As the EV landscape continues to evolve, partnerships like Chery and Geleximco’s pave the way for significant technological and economic advancements, positioning Vietnam as a burgeoning hub in the electric vehicle sector.

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Featured Image courtesy of DALL-E by ChatGPT

Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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