Mexico Automotive Chinese EV Manufacuturing JAECOO

Jaecoo Set to Build Production Facility in Mexico Amid Market Entry

Chinese brand Jaecoo, owned by the Chery Group, has entered the Mexican market with its first gasoline SUV, the Jaecoo 7. This expansion follows the success of other group brands like Chirey and Omoda in the local market.

Shawn Xu, Vice President of Chery International, revealed that Jaecoo is commencing its Mexican market journey with the release of its first gasoline SUV, the Jaecoo 7.

The brand plans to launch another SUV, the Jaecoo 8, and the PHEV version of the Jaecoo 7 this year, catering to an executive profile with a classic design, distinct from Chery and Omoda’s offerings. The strategic positioning includes actor Alfonso Herrera as the brand ambassador, titled “Mr. Jaecoo,” integral to the communication and starring in the initial brand advertisements.

Jaecoo intends to close the year with 40 shared dealerships with the Omoda brand, leveraging existing infrastructure to reach more consumers.

Jaecoo’s first model, the Jaecoo 7, a compact SUV, boasts a 1.6-liter engine with 184 horsepower and 203 lb-ft of torque, paired with a seven-speed DCT transmission, available in front-wheel and AWD variants, priced between 599,900 and 745,000 pesos.

Featuring a 14.8-inch screen with wireless connectivity, a Sony sound system, a panoramic roof, and ambient lighting, the Jaecoo 7 is in the same segment as the Volkswagen Taos or Mazda CX-5.

With a focus on achieving high sales volume, Jaecoo aims to replicate the successful performance seen in other group brands like Chirey and Omoda.

To ensure the availability of spare parts, Jaecoo has developed a robust system with over 510 exclusive part numbers for the Jaecoo 7 model, supported by a warehouse spanning over 6,000 square meters, enough to cover over seven months of sales.

Looking to expand its presence in Mexico and other Latin American nations, Chery International plans to establish a manufacturing plant in the country soon, potentially in Durango or the State of Mexico.

The arrival of Jaecoo follows Chirey’s debut in 2022 and the subsequent launch of the Omoda brand, marking the brand’s entry into the Mexican market with confidence in consumer acceptance.

In the short term, Jaecoo Mexico aims to sell between 5,000 and 8,000 units of its Jaecoo 7 model in 2024 alone, with plans to introduce a larger SUV in the latter half of the year.

With distribution and logistics handled in partnership with DHL, Jaecoo ensures efficient delivery of spare parts to distributors, emphasizing quick delivery even to the farthest regions of Mexico.

Jaecoo’s introduction marks a significant step in Chery Group’s expansion strategy, tapping into Mexico’s growing automotive market with tailored offerings and strategic partnerships.

Resumen en Español: 

Jaecoo, una marca automotriz china, ha incursionado en el mercado mexicano con su primer SUV a gasolina, el Jaecoo 7, seguido de planes para lanzar nuevos modelos y establecer una planta de producción en México. La estrategia de Jaecoo se enfoca en ofrecer una estética clásica y un perfil ejecutivo, diferenciándose de otras marcas del grupo como Chirey y Omoda. La marca busca cerrar el año con 40 concesionarios compartidos con Omoda, aprovechando la infraestructura existente para alcanzar a más consumidores. Además, Jaecoo espera vender entre 5,000 y 8,000 unidades de su modelo 7 solo en 2024, respaldado por alianzas estratégicas y una sólida red de distribución de repuestos.