Chinese automaker Chery to launch EV brand with Japan’s Autobacs Seven
Chinese automaker Chery and Japanese retailer Autobacs Seven will jointly launch an EV brand in Japan starting 2027, leveraging Autobacs’ 1,200-store network and targeting the mass market with four models planned by 2029. The partnership aims to overcome Japan’s untapped EV growth potential despite policy headwinds, including lower subsidies for Chinese-made vehicles like BYD’s models.
Chinese automaker Chery and Japanese automotive retailer Autobacs Seven will jointly sell electric vehicles (EVs) in Japan beginning in 2027. The collaboration will expand Chery’s global EV presence, ranked 12th in new vehicle sales in 2025 with 2.806 million units sold worldwide. Autobacs, which operates around 1,200 stores globally, will handle sales and maintenance, leveraging its existing network to support the venture’s launch. The joint venture, established in Singapore, will introduce its own EV brand for Japan, using Chery’s technology from its Chinese market lineup. Four models are planned for launch by 2029, with production initially based in China at Yueda Automobile’s factory, though potential Japanese production is under consideration starting 2030. The vehicles will feature advanced driver assistance systems and aim for competitive mass-market pricing. Despite Japan’s status as a major car market, EV adoption remains low, with new passenger EV sales rising 80% year-over-year in Q1 2026 to 26,959 units, reaching a 2.5% market penetration. The partnership seeks to capitalize on this growth, with Autobacs planning several hundred sales and service locations in the first year to reduce costs and boost customer trust. The venture includes investments from Jiangsu Yueda Automobile Group, battery manufacturer Gotion High-tech, and Japanese painting equipment maker Anest Iwata. Chery’s expansion aligns with its strategy to increase exports, particularly in Europe, where its UK market share reached 5.9% in Q1 2026. However, policy challenges persist, as Japan’s EV subsidies favor domestically produced vehicles, creating a JPY 1 million (USD 6,345.7) incentive gap for Chinese-made models like BYD’s. Autobacs’ experience with other EV brands, including BYD and Hyundai Motor, will support the venture’s market entry. BYD entered Japan in 2023 with around 70 sales locations and aims for 100, though sales momentum has lagged due to policy barriers. The Chery-Autobacs partnership aims to address these challenges by combining Chery’s EV technology with Autobacs’ established retail infrastructure.
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