Chery keen on sub-$30K cars, with sub-$20K a possibility

Chery has its sights set on offering a mainstream sub-$30K small SUV to go up against the MG ZS and Kia Stonic, but it could also be plotting a tiny little EV with pricing similar to the MG 3 or Kia Picanto.

The brand is expanding its model range to include a number of different types and sizes of vehicle, having just added the Tiggo 8 Pro Max - its biggest model and its first seven-seater - but the business can see space opening up for smaller, more affordable vehicles, too.

Chery Australia chief operating officer, Lucas Harris, said the business can see some potential at the affordable end of the market, with many brands abandoning the sub-$30K space as they chase higher margins on larger, more profitable SUVs.

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“It's good, isn't it?” he said when asked about the spaces opening up below $30,000.

“Certainly I think there are some opportunities in that space, and we're obviously looking at that very carefully,” he said, suggesting there could be a couple of potential front-wheel drive SUVs, or crossovers, to play that role.

As such, it comes as no surprise that Chery has confirmed the Tiggo 4 is coming, and it could slot under the current entry-point to the brand’s line-up, the Omoda 5.

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However, Mr Harris also suggested that there’s space for an even cheaper, even smaller model - such a car already exists, the Tiggo 2, but in its current-generation guise, it isn’t expected to arrive here.

“It's actually quite a small car - that model has been around for quite a while, so it's highly unlikely that we would take that version of the Tiggo 2,” he said. “But for inner-city driving and as people are looking for more and more affordable options, we certainly wouldn't say no if an option became available in right-hand drive, to look at a car like. But it's currently not in the product plan.”

But on the topic of a Picanto-sized model running full EV power, Mr Harris hypothesised that there could be a solution available from China that might tick the box for urban drivers on a budget.

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Such a car would have some limitations to consider for it to be positioned at a compelling price point.

It would have a top-speed limitation to save battery range, a smaller battery with likely less than 200km of range, and possibly not the same mindset around crash test ratings – the Omoda 5 and Tiggo 7 Pro have both been awarded a five-star ANCAP rating, and the Tiggo 8 Pro is also expected to get it.

Mr Harris suggested that a buyer of a circa-$20K EV that is tiny and maybe caters more for singles and couples could mean that a safety rating won’t be as crucial a consideration.

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“An ANCAP rating is not, I think, the be all and end all for every consumer,” he said, suggesting that high-end luxury and sports car customers don’t buy based on crash tests, and perhaps those on a strict budget might not, either.

“Those cars are built and designed and bought by customers for a totally different purpose than what a family car is, that's got to be with you day in and day out to do the regular chores of life.

So how does that change you know we're talking hypothetically about a Smart Car-esque city car that doesn't do more in the 70 kilometres per hour. It's designed to drive in 50 and 60 kilometre zones of cities.

“Is the standard different for those cars, because the purpose is different and the people buying those cars, are they as interested in if it's all these other purpose boxes, does the star rating become a big factor for them or not?” he posited.

“Nothing is impossible, right? You know, one of the things I think is curious – and I don't know the answers – but is there a market for Smart Car-esque sorts of vehicles?” he posited.

“You know, super small EVs, a couple of hundred kilometres of range, very affordable, they're around-town cars, you know you're not going on the open road, that's not the purpose.

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Chery Tiggo 8 Pro Max

“Is there a market for that? Maybe it's not particularly big right this second, but as the population increases and city densities become more and more, and the roads aren't exactly getting any wider or bigger, car parks aren’t getting any bigger. Is there a place for those sorts of cars? Maybe.

“They are overseas, and in more densely populated cities [they make a lot of sense]. So, yeah, as our population grows, does it create an opportunity? Maybe it does.”

Chery currently sells the Omoda 5 from $34,490 drive-away, but there are significant deals being done on that most-affordable model. Above it is the Tiggo 7 Pro, and the newly launched Tiggo 8 Pro Max sits atop the range… for now.