Omoda, one of the new brands associated with Chery Holding, will enter the competition in the Ecuadorian market.

Its entry is planned for 2024, and its starting point is the SUV segment that has grown on the national market. There it will compete with the C5 model.

Andrés Salas, director of web development, talks about the brand’s plans to penetrate the country.

The brand is present in twelve markets. What motivated the company to decide to enter the Ecuadorian market?

The Ecuadorian market is very interesting and relevant for the group. We have been in Ecuador for several years with the Chery brand. We know the market and the idea is to go to markets where there is previous experience. In Latin America, there is a good launch in Mexico, more than 1,000 units are sold per month, so it is basically starting to serve important markets where it was previously present with other brands of the group.

Will Omoda be marketed as an independent brand in Ecuador or will it be associated with Chery?

The company’s global strategy is to be showroom separate, different from Chery’s to mark the difference in the type of product we handle and the same way to handle it in the Ecuadorian market.

And within this market, what type of segment will the brand target?

We are price-focused on SUVs, that would be in the medium, medium-high segment that we would have there, the young, professional segment, people who like connectivity.

SUV is a growing segment in Ecuador.

Indeed, if one begins to observe the trends, many years ago you had a very significant share of passenger vehicles and what began to happen is that with the competitiveness of the products sold in Ecuador, there are small margins for the shift from a passenger vehicle to an SUV, and obviously because of the versatility that you must have to be able to travel, the condition of the roads in Ecuador, the SUV question is very useful to you. Furthermore, the global trend is to have an increasingly comfortable space. This is the segment we want to focus on.

In which month do you plan to launch the brand in Ecuador?

We are analyzing the first quarter of 2024, when we would start marketing vehicles in Ecuador.

The plan is to have how many outlets in Ecuador in the first year?

The plan is to look 24 months ahead. In the first 12 months, assuming what we see in the first quarter of 2024, we would like to have about 10 sales points, and since then we have been talking about 18 sales points for 24 months.

For the Ecuadorian market, are you considering introducing the same models sold in Mexico?

The model we plan to enter with is the Omoda C5. It has two versions 1.5 and 1.6 GDi engine.

Omoda has SUV and car models. In Ecuador, it will compete with the C5 SUV model. Taken from Omod

What will be the price range for that model?

We define it, it should be between 26,000 and 30,000 dollars. This is what we define in the price range. The model comes from Wuhu, China. It is the city of Chery products.

What features stand out in this C5 model in contrast to other SUVs?

What you have to see and it is a feature that makes us stand out as Chery Holding is everything that has to do with technology, equipment, safety. If vehicles like the Omoda C5 are compared to competitors in the same segment in terms of equipment, safety and connectivity, it will be far superior and that will be the difference we will highlight. Another important point is that Chery is the Chinese company with the largest export volume in its country, it is the company with the largest global presence. Response times as a brand are fast. We adapt our products very well to the Ecuadorian market and the markets we go to.

You said unit marketing has been good in Mexico, what outlook do you have for this brand in the local market?

The odds are high. We hope that the model will be successful because of the equipment we have and the technology. We are seeing sales of over 180 units per month.

In which cities will you initially have sales points?

As it happens with brands that want to have good coverage, you will start in the important cities, so it will be in Quito, Guayaquil, Cuenca, Ambat, Riobamba and the Manabí area. We cover cities and important points. The first will be Quito and Guayaquil merchants which will open. There is a 12 and 24 month plan.

What is the investment you plan to introduce Omoda in Ecuador?

We evaluate the investment that would be made with the distributor in terms of infrastructure. From there, there must be another additional amount in working capital, letters of credit.

How many jobs would that create?

More than 150 jobs. It is an interesting project that will be felt on the labor market, in the automotive sector and for our clients.

How much future market share would you like to have as Omoda?

If we do a simple calculation and put a market of 10,000 units and we want to make 180 units per month, we aim to have between 1.8 and 2% of market research. After twelve months, we hope to achieve that.

Do you think Ecuadorians trust Chinese brands more than traditional ones?

If we move on to the topic of numbers and see the sources from which vehicles for the Ecuadorian market come, in terms of import and sales, we have a significant advantage in the product that comes from China, especially the brand that we have as a group, which is Chery. The Chinese market is seeing factories and bigger investments. All that has to do with investments and product quality, the quality achieved in the product is quite good. When you see a competitor’s product compared to Chery Holding’s product, it’s much better, that’s what the customer sees. Because of this, there is good acceptance of the product in Ecuador.