Chery Launches Seven Brands in Europe: Sales Surpass BYD, but PHEV Tariff Risks Emerge

In the first five months of 2026, Chery sold 134,501 vehicles in Europe — significantly exceeding BYD's performance during the same period and trailing only SAIC Motor Group's MG brand by a narrow margin of 6,869 units. Chery thus ranks as the second-highest-selling Chinese automaker in Europe — a dramatic leap from its full-year 2024 European sales of just 17,000 units.

To sustain this momentum, Chery is accelerating its "multi-brand matrix" strategy: aiming to launch seven independently operated brands in Europe by end-2028 (currently only one is active) and introduce 21 SUV models across its full lineup. This scale now approaches that of Volkswagen Group's nine-brand European portfolio, drawing significant industry attention.

Among the newly added brands, Lepas began sales in June 2026 with its first model — the L8 plug-in hybrid midsize SUV — and will launch the all-electric compact SUV L6 in September. In 2027, Lepas plans to roll out the L4 (offering pure electric, plug-in hybrid, and full hybrid variants), the midsize L9 SUV, and the subcompact L2 SUV. Another new rugged off-road brand, iCaur, will debut its flagship V27 three-row large SUV at the end of 2026, with a starting price of approximately €60,000 — directly competing with Dongfeng and Stellantis' China-made flagship SUV JEEP.

Meanwhile, Chery's core brand is also expanding: beyond the already launched Tiggo 9, the Tiggo 8, all-electric Tiggo 3, and dual-powertrain (plug-in hybrid and full hybrid) Tiggo 7 will arrive in Europe by end-2027; the Tiggo 4 and Tiggo 2 — both offering all-electric and hybrid variants — are expected to follow in 2028. Notably, Chery has explicitly stated it has no plans to introduce non-SUV body styles in Europe for now, with any such launch unlikely before 2029.

Consulting firm AlixPartners notes that Chery leverages its software-defined vehicle platform to rapidly differentiate each brand's identity — tuning powertrain output curves, intelligent cockpit features, and lighting systems via software layers — while tightly controlling costs. However, Jefferies analyst Philippe Houchois warns that the EU is proposing new tariffs on Chinese-made plug-in hybrid vehicles — a segment accounting for nearly half of Chery's total European sales (62,417 units through May). Combined with the absence of local production facilities, this could constrain the strategic depth of Chery's multi-brand expansion. To alleviate capacity bottlenecks, Chery is exploring the possibility of contract manufacturing for select models at Nissan's Sunderland plant in the UK.