Chinese automaker Chery, in partnership with Japanese auto parts retailer Autobacs Seven, will begin selling electric vehicles (EVs) in Japan from 2027. The move further expands the sales channels for Chinese-developed EVs in Japan, where Chinese automakers are already leading in EV technology.
Chery ranked 12th globally in new car sales in 2025. Autobacs operates about 1,200 stores worldwide, offering automotive products and used car sales. The Japanese firm has expanded into new car sales, partnering with brands such as BYD and Hyundai, and has invested in Tokyo-based EV startup ASF. Chery and Autobacs have established a joint venture (JV) in Singapore, with investments from Jiangsu Yueda Automobile Group, Chinese battery maker Gotion High-Tech, and Japanese painting equipment manufacturer Anest Iwata. The JV will launch an exclusive EV brand for the Japanese market.
New models will leverage Chery’s China-developed technology and feature advanced driver-assistance systems. Pricing is being finalized, targeting the mainstream segment. Chery vehicles are known in Europe and Southeast Asia for their full specifications and competitive pricing.
By 2029, the JV plans to introduce four models in Japan and is considering expansion into other overseas markets. Initial production will be at Yueda’s plant in China, with potential local manufacturing in Japan after 2030.
Although Japan is one of the world’s most mature auto markets, the partners see significant growth potential for EVs. Industry data shows that in the first quarter of this year, Japan’s battery EV sales surged 80% year-on-year to 26,959 units, with EV penetration surpassing 2.5% for the first time.
Sales and after-sales services will rely on Autobacs’ nationwide store network. The JV plans to establish hundreds of sales and service points in its first year, balancing cost control with customer reach.
In Japan, legacy automakers like Toyota have spent decades building extensive dealership and service networks. For new entrants, physical retail and service outlets are critical for brand visibility and consumer trust, but building such networks from scratch requires high upfront investment — a longstanding barrier for overseas automakers.
Chinese rival BYD entered Japan’s passenger EV market in 2023. It now has about 70 sales outlets including those in preparation, targeting 100 locations nationwide. However, BYD’s sales in Japan have lagged expectations, partly due to policy challenges. Under Japan’s EV subsidy program, BYD models — with both the vehicle and battery system made in China — receive nearly 1 million yen (about $6,360) less in subsidies than models from Japanese brands like Toyota.
Amid intensifying competition in China’s domestic auto market, Chery is accelerating its global expansion. In 2025, Chery sold 2.806 million vehicles globally, ranking just behind Nissan in 11th place. Chery is also increasing exports to Europe, and in the first quarter of this year, its market share in the UK rose to 5.9%.
