Chinese automaker Chery Automobile Co. is looking to capture the Australian market with its gasoline-powered SUVs, which are priced to compete at the lower end of the market. The company's mid-size Omoda 5 is currently being sold in Australia for as little as A$32,000 ($22,000) for the base model, making it an affordable option for Australian car buyers.
The high-end version of the Omoda 5 comes with extra features that are typically found in luxury cars, such as a heated steering wheel and exterior puddle lights, but still only costs around A$35,000. This is significantly less than the price of Australia's best-selling car, the Ford Ranger pickup, which can cost more than double the price of the Omoda 5.
Chery joins other Chinese automakers such as Great Wall Motor Co. and SAIC Motor Corp. in targeting the Australian market with relatively affordable cars. Despite the global push towards electric vehicles, the Australian market has been slow to adopt this trend, making gasoline-powered SUVs and pickups still popular choices for Australian car buyers.
With inflation still a concern in Australia, the Omoda 5 is an attractive option in a market that loves SUVs and pickups. Sales of vehicles sourced from China have increased by 69% in Australia, and Chery hopes to capitalize on this trend by introducing its larger Tiggo 7 Pro and Tiggo 8 Pro SUVs later this year.
While the Omoda 5 and other cars in its price bracket are a test of Australia's willingness to switch to electric vehicles, they offer an affordable alternative to the more expensive gasoline-powered vehicles currently dominating the market. With more Chinese automakers looking to enter the Australian market, it will be interesting to see how this trend develops in the coming years.