The stigma around Chinese cars is mostly gone, says Omoda Jaecoo

The stigma around Chinese-made vehicles has largely evaporated according to newcomer brand Omoda Jaecoo, which officially launched its most expensive model yet in Australia this week.

The Omoda 9 – a five-seat, plug-in hybrid SUV – is the most expensive vehicle to be sold in Australia from a Chery-owned brand, priced at $61,990 before on-roads.

Omoda Jaecoo chief commercial officer Roy Muñoz said the company is more than comfortable with the price it’s charging for its new flagship as it says Australian buyers have accepted Chinese brands, with expectations having changed.

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“I think that stigma is mostly gone,” Mr Munoz told CarExpert. “I guess from one perspective it is our most expensive product – from another perspective, what else can you get at this price point?”

Australian buyers could be convinced, said Mr Muñoz, by a premium Chinese vehicle at the same price point as vehicles from long-standing brands such as Mazda and Volkswagen. 

Chery, like most Chinese automakers in Australia, has typically priced its vehicles under non-Chinese competition in order to win over buyers against more familiar rivals. 

While the Omoda 9 is the Chery group’s priciest vehicle yet in Australia, it still undercuts the most affordable plug-in hybrid Mazda CX-60, which costs $63,290 before on-roads but lacks many of the luxury features found in the new Chinese offering.

Still, this step upmarket is a gamble for Omoda Jaecoo given it’s early days for the brand in Australia.

Consequently, the Omoda 9’s price may potentially increase or fall on its local sales success. 

“I guess you’re never going to nail it perfectly in terms of your price point, but I think if you keep pushing that value the market sort of sets itself,” he added. 

“If we find we’re very successful in this price point, that niche, it might force others to make adjustments, or we might need to make adjustments.”

Despite the confidence, the Omoda Jaecoo boss admitted Chinese-made cars have not yet reached price parity with long-standing mainstream brands. 

“We’re certainly comfortable pricing it [the Omoda 9] at this price point with the level of tech and features – I guess it’s a case of who has to move to reach parity, right?”

“It may not necessarily be us – and I’m not saying this is the case – but maybe our competitors might be presently too high and may need to adjust, or we are a little too low.”

“We don’t have the time and the market or brand awareness or brand equity that they do, either. There’s multiple factors at play, but we’ve comfortable with where we’ve positioning the vehicle in terms of price.” 

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