CHERY Australia chief operating officer Lucas Harris says multi-franchise dealerships are providing the Chinese importer with its strongest return on investment, as customers cross-shop Chery models with other brands on the forecourt before invariably choosing Chery.

Speaking with GoAutoNews Premium at the launch of the brand’s first all-electric model – the Chery Omoda E5 – in Canberra last week, Mr Harris said that of the 70 dealerships located across Australia it is those shared with other marques that best highlight the value offering of the Chery brand, and where the highest number of contracts are signed.

“Multi-franchise dealerships – particularly those that have a used-car business on the same site – typically go better for us than the ones that don’t,” he remarked.

Lucas Harris

“We see that there are some potential used-car buyers that are cross-shopping while there, and that the value for money and long warranty of the Chery product is what makes them say, ‘well, why wouldn’t I do it (buy a new Chery)’.

“There is also anecdotal feedback from our dealers that there is cross-shopping from particular new brands,” he said without naming names. “It’s not helpful for them, but quite helpful for us.”

Mr Harris said the absence of budget offerings from stalwart marques was another key driver for Chery sales, the brand presenting Aussie buyers with the opportunity to buy new, instead of second-hand.

“I think when you look at some of those well-established brands, that their customer bases are changing, and changing with them, their product,” he said.

“And I don’t think that change is necessarily bad for them. As those businesses change, the kinds of customers change with them. They are still successful, of course, but it does provide an opportunity at the entry point of the market.

“When I say, ‘entry point’, I don’t just mean on price. I also mean value. You know, it is really important to offer value to our customers.”

While not wishing to be drawn on immediate comparisons, Mr Harris said many of the familiar names in the business had moved to offer higher-price models, leaving opportunity for Chinese importers in particular to fill the void.

And while it is evident that void is indeed being filled, Mr Harris said it was important that Australian Chery customers were offered a value proposition that met their aspirations. 

He said Chery would continue to offer vehicles with a strong equipment list and the latest safety technology, while also delivering value for money and a strong aftersales package.

“We could have offered, let’s say, the new Tiggo 4 as an absolute bare bones model with nothing in it and sold it for the lowest price possible, but that is not where we want to be. We don’t want to be a cheap car, we want to be an amazing value car,” he said.

“This is why, again using the Tiggo 4 as an example, when people cross-shop the car, they will find it has all the bells and whistles that they want, which gives us a strategic edge over competitors (with a similar price tag).”

Mr Harris said he believed Chery was able to offer the level of dealership support, and therefore customer support expected of an established marque while continuing to deliver value for money, and that it is paramount that every Chery staffer is prepared to work toward that goal.

“It is important we treat our dealers as genuine partners,” he stressed.

“We are working to maintain a collaborative and pragmatic approach with our dealers (in order) to win their hearts and minds. We’ve done it enough that they are willing to invest in facilities, staff and training, but it can’t stop there.

“We must be ongoing (in our support), that is important. And it’s not just about management at our dealerships, it’s about the boots on the ground that are doing the hard work every day.

“We need to be supporting them as well so that they can help show our customers that Chery will deal with them differently – that is very important to us.”

Doubling down on comments made to GoAuto earlier in the year, Mr Harris said Chery Australia wants to ensure customers have the same experience with its staff regardless of their position in the ownership journey.“Ultimately, service to customers is through dealers … the goal is to be super accessible. Make sure we have parts. Make sure we answer the phone. Make sure we know how to help them. We need to remove any roadblocks we can,” he enthused.

“I’m sure we won’t always be perfect, but I am absolutely confident that everyone in our team and our business has the same underlying mentality. We will support our dealers so that they can support our customers. This is our approach.”