Finance
Chery Plans Smaller Cars for Europe but Timing Still Unclear, Executive Says
Published by Global Banking & Finance Review®
Posted on April 21, 2026
2 min readLast updated: April 21, 2026
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Chery is expanding its European lineup beyond SUVs by developing sub‑4‑meter cars. Platform work has just begun, and although priority is high, executives did not detail a launch timeline.
Chery Eyes European Growth with Plans for Smaller Cars—Launch Timing Uncertain
Chery's Expansion Strategy and Market Focus
MILAN, April 21 (Reuters) - China's Chery Automobile is working to expand beyond its SUV-focused range to smaller cars to support its growth in Europe, but platform development has just started and times remain undisclosed, a top group executive said.
Chery's Brand Portfolio and Recent Developments
Chery, China's largest car exporter, has a portfolio of brands including Chery itself and Omoda and Jaecoo, which are leading the group's growth in the European market.
The Lepas Brand and New Models
The Lepas brand was added last year, with a range now consisting of three SUV models, including the L6 which was unveiled in Europe late on Monday during the Milan Design Week.
Focus on SUVs and Market Gaps
Chery's Head of Engineering, Peter Matkin, said the group had focused on SUVs as those are "what everybody's asking for" both in China and in other global markets where it exports cars.
Identifying Opportunities in the European Market
"Now my constant push ... is that we're missing 50% of the European market because all of our cars are 4.2, 4.3 meters (and) above, and we need to now compete in the below 4 meters," he told media after the presentation.
Plans for a New Vehicle Architecture
Matkin said Chery was looking at developing a new architecture which can support cars below four meters, to come in the future.
"We can't do everything at once, but I can promise you that it will come very, very soon, very, very fast, I mean (we are) daily on this program," he said, adding however he did not know the precise timing. "We just started working on this now".
Production and Partnerships in Europe
Chery - which is already assembling cars in Europe through a joint venture in a former Nissan plant in Spain - is looking to expand production in the region through partnerships with other automakers allowing it to use existing factories.
(Reporting by Giulio PiovaccariEditing by Keith Weir)
Key Takeaways
- •Chery’s engineering head, Peter Matkin, says the company plans to enter the sub‑4‑meter European segment to capture roughly 50% of the market that SUVs (4.2–4.3 m+) currently miss.
- •Platform development for these smaller models has only recently started; timing remains unspecified, though Matkin emphasized progress is rapid and daily.
- •Chery continues to localize in Europe — assembling SUVs like Omoda and Jaecoo via a JV in Spain’s former Nissan plant and expanding R&D in Paris and Barcelona.
Frequently Asked Questions about Chery plans smaller cars for Europe but timing still unclear, executive says
1Is Chery planning to introduce smaller cars in Europe?
Yes, Chery is developing smaller cars to expand beyond its current SUV-focused lineup for the European market.
2What is the timeline for Chery's smaller cars in Europe?
The precise timing remains unclear, as platform development for smaller cars has only just begun.
3Which Chery brands are leading growth in Europe?
Chery, Omoda, and Jaecoo are leading the group's growth in the European market.
4How is Chery expanding production in Europe?
Chery is assembling cars in a former Nissan plant in Spain and seeking partnerships with other automakers to use existing factories.
5Why is Chery shifting focus from SUVs to smaller cars in Europe?
Chery wants to tap into the large market segment for cars under 4 meters, which represents about 50% of the European market.
