Editor’s note: TNGlobal’s reporter attended the SOUEAST International Business Annual Conference in Shanghai (sponsored)
Chinese car maker SOUEAST has unveiled a strategic three-stage plan for the next few years, beginning with internal combustion engine (ICE) and plug-in hybrid electric vehicle (PHEV) in left-hand drive markets, moving to a balanced portfolio for right-hand drive regions, and ultimately prioritizing EVs for the European Union by 2030.
“From 2024 to 2025, SOUEAST will focus on ICE vehicles, complemented by PHEVs vehicles, with a key emphasis on expanding into left-hand drive markets. During this phase, we aim to complete the product lineup of SUVs and sedans powered by traditional fuels,” Dai Lihong, Vice President of Chery Automobile Co., Ltd. and President of SOUEAST Motor, told reporters at a recent press conference.
From next year to 2027, the company will move toward a balanced product portfolio, simultaneously launching ICE, PHEV, and fully electric (EV) models. Its focus will shift to right-hand drive markets, introducing right-hand drive models and completing the industrial deployment for these regions.
From 2028 to 2030, SOUEAST will prioritize pure electric vehicles (EVs), with ICE and PHEV models playing a supporting role.
“During this period, we will accelerate the rollout of EVs, targeting the European Union market and completing the industrialization of new energy vehicles,” he said at the SOUEAST International Business Annual Conference in Shanghai last Thursday.
“Through this phased approach, SOUEAST will systematically complete its global deployment across NEVs, left-hand and right-hand drive markets, and vehicle segments spanning from B-class to D-class,” he added.
On the R&D front, Dai said SOUEAST is taking a comprehensive approach by establishing a global R&D network. SOUEAST has already set up six major research institutes across key regions including the Middle East, Brazil, and ASEAN, strongly promoting the localization of both R&D operations and talent.
SOUEAST sees Southeast Asia as important potential market
According to Dai, SOUEAST also views Southeast Asia, as one of the most dynamic markets globally, as one of the most important potential markets.
“The market fit is very high. In fact, Southeast Asia is among the most vibrant markets in the world,” he noted.
“Southeast Asia’s fast economic growth and young demographic structure align well with SOUEAST’s target users and product positioning — young consumers in Southeast Asia which favor personalized and smart consumption experiences, which matches the value SOUEAST aims to deliver,” he added.
Dai also noted that many Southeast Asian countries are actively promoting the development of the new energy industry and have introduced a number of supportive policies.
“SOUEAST has clearly positioned hybrid technology as a core part of its technological layout. We are not only applying our existing DM (Super Hybrid Technology) to more models but are also working on the next-generation hybrid engines, drive motors, and battery technologies. From the perspective of diversified energy solutions, our strategy is highly-aligned with the mobility trends in Southeast Asia,” he added.
From a strategic perspective, he said Southeast Asia serves as a key strategic hub for SOUEAST’s global expansion.
“Located at a critical crossroads connecting Asia to the world, Southeast Asia maintains close international trade ties. Therefore, establishing a strong presence in Southeast Asia is of great strategic importance for SOUEAST to expand its global influence. We place a high priority on the Southeast Asian market,” he explained.
SOUEAST is owned by China’s state-owned car manufacturer Chery Group. Anhui-based Chery sold its first car abroad in 2001 and has expanded to sell vehicles in more than 100 countries, becoming China’s largest auto exporter, according to a prospectus for its planned initial public offering in Hong Kong, Reuters reported.
Chery is expanding its presence in Southeast Asia, with Malaysia serving as a key production and export hub. In Malaysia, Chery announced that it has begun export of JAECOO SUVs, another brand under its group, to Southeast Asian market this year. The move is in line with Chery’s vision to make Malaysia its production hub for the region, the group said in a statement in February.
The first phase of exports from Malaysia to Vietnam will comprise JAECOO ICE SUVs and PHEVs with more models and brands to join the list. Exports to other countries within Southeast Asia will also follow including Thailand, Brunei, The Philippines and Singapore. Elsewhere in Thailand, Chery is also building a new manufacturing plant to produce hybrid and electric vehicles, according to earlier reports.
JETOUR, another brand under Chery Group, was launched in Indonesia last year and was officially launched in Malaysia recently. Chery has officially re-entered the Indonesian market in April 2022 and the Malaysian market in September 2023.
Last week, SOUEAST hosted its first International Business Annual Conference at the Grand Halls in Shanghai, marking a pivotal moment since the brand renewal.
The conference gathered hundreds of distributors from different countries worldwide. Under the theme “Ease your life,” where SOUEAST unveiled its global strategy featuring the mode of integrating localized production with coordination worldwide, the company said in a statement.
Simultaneously, at the Chuansha Test Drive Area, Pudong, Shanghai, the brand hosted immersive test drives of its latest models-S09, S07, S06 and the hybrid S06 DM-for over 260 global distributors and media.
Building upon its three decades of auto expertise since its establishment in 1995, SOUEAST said it has entered a new chapter following its strategic restructuring in 2024 under its parent company Chery Group.
Backed by three decades of technological expertise and the robust support from the group, SOUEAST is advancing its global R&D and production footprint, demonstrating the brand’s growing international capabilities.
SOUEAST has entered over 30 markets in 2024 while establishing 144 sales networks.
At the conference, SOUEAST unveiled a comprehensive vehicle matrix featuring its new “Urban” lineup, adopting the strategy of SUV + CAR to create an EASE lifestyle companion. By launching two global models targeting the SUV-B segment and introducing three premium SUV-C models, SOUEAST is strategically entering the sedan market with dedicated CAR-B and CAR-C segment offerings as well.
SOUEAST further plans to debut a next-generation pickup truck for urban EASE mobility by 2030.
Autos are a growth engine, accounting for 10 percent of China’s GDP and 6.5 percent of exports last year, Reuters reported, quoting Tommy Wu, senior economist at Commerzbank. They also are a symbol of China Inc’s ability to keep factories humming at home and to achieve technological dominance overseas, according to the report.
In China, domestic demand for cars was already weak. BYD, Geely, SAIC and compatriots sent nearly 6 million vehicles abroad last year, a 19 percent year-on-year increase. Overall, car makers in the country have capacity to supply half the global car market of about 90 million, the report added.
China’s SUV brand JETOUR to launch in Malaysia & Indonesia as soon as this month