While BYD has been painstakingly opening its 70th store in Japan, Chery has rolled out a backdoor market entry strategy via a reverse brand localization approach.

On May 11, media reported that Chery partnered Japan ’ s auto retail giant AUTOBACS SEVEN to launch EVs in Japan – without marketing itself as a Chinese brand. The two sides established a Singapore joint venture EMT, with shareholders including Chery, Jiangsu Yueda, Gotion High-tech and Anest Iwata. EMT plans to launch its first EV in 2027 and 4 models by 2029, positioned as a pure Japanese brand led by auto industry veterans from Nissan, Honda and Mazda.

Simply put: Chery builds cars, Japanese partners handle sales and branding.

Japan is one of the world ’ s most closed auto markets, with local brands holding over 90% share and EV penetration at just 2.6% ( Q1 2026 ) , far below China ’ s 50%. BYD entered Japan in 2023 but sold only 4,536 units in 2025, hampered by Japanese government subsidies that favor local EVs over Chinese models by nearly 1 million yen.

Chery ’ s solution: abandon the "Chinese brand" label entirely. Leveraging AUTOBACS ’ 1,200 existing outlets, Chery can quickly build hundreds of sales points in Japan – a network that would take a decade to build independently. Vehicles will be made in China for cost efficiency first, with Japanese local production under consideration after 2030.

Chery keeps a low profile, claiming it only invests in EMT without daily management. But it is obvious the project relies entirely on Chery ’ s technology and platforms.

Chery ’ s Overseas Dominance

Chery is a typical "overseas-focused" Chinese automaker. In 2025, it sold 2.806 million vehicles globally, including 1.344 million exports – China ’ s top passenger car exporter for 23 straight years. Cumulative exports surpassed 6 million units by February 2026, a Chinese industry first.

In Q1 2026, overseas sales accounted for 67% of its total volume. In April 2026, Chery exported 177,600 units ( up 102.4% year-on-year ) , marking 12 consecutive months of exports over 100,000 units. Its products cover 130+ countries, with 8 global R&D centers and 16 KD factories.

In Europe, Chery is rapidly expanding: it ranked No.2 in the UK market in March 2026 ( 5.9% share ) , surpassing BMW and Ford. Its OMODA and JAECOO brands have sold over 40,000 units in Spain, with NEV ratio over 80%.

Europe & US: Targeted Localization Strategies

Facing EU high tariffs and strict certification, Chery adopted deep localization: in 2024, it joint-ventured with Spain ’ s Ebro and took over Nissan ’ s Barcelona factory, becoming the first Chinese automaker producing cars in mainland Europe. The plant starts production in 2026, targeting 150,000-200,000 annual output by 2029. Chery also opened its European Operation Center and Research Institute in Barcelona in April 2026.

For the US, with 100% tariffs on Chinese cars, Chery avoids direct entry, instead radiating to North America via its Mexican KD plant ( 80,000 units annual capacity ) while waiting for a better policy window.

Chery ’ s Globalization 3.0

Chery ’ s globalization has evolved through three stages: Product Export ( 1.0 ) , Capacity Export ( 2.0 ) , and Systemic Globalization ( 3.0 ) – building factories, R&D and operation centers worldwide to "become part of the local community".

In 2026, Chery targets 1.5 million overseas sales and 3.2 million global total sales. If achieved, it will grow from China ’ s top exporter into a real global auto giant.

Chery ’ s stealth Japan strategy is not about conquering the market, but blending into it – a quiet, shrewd move that may rewrite the history of Chinese auto globalization.