Chery's 2027 Japan EV Entry Faces Questions After Partner's Denial

A reported joint venture to sell Chinese electric vehicles in Japan has been thrown into question after one of the key Japanese partners clarified that no final decision has been made.

Chinese automaker Chery Auto’s plan to enter the Japanese electric vehicle market by 2027 faced immediate uncertainty after its supposed partner, Autobacs Seven, stated no concrete sales decisions have been finalized, despite reports of a multi-company joint venture.

"No concrete decisions have been made on selling China-made electric vehicles in Japan," Autobacs Seven (9832.T) said in a statement responding to a Nikkei report. The company confirmed it invested in the Singapore-based venture, Electric Mobility Technology, but is still "considering options for leveraging its store network."

The initial report had sent Chery Auto’s Hong Kong-listed shares (09973.HK) up 1.33% to HKD30.56 after an early dip. The venture, which also includes China’s Yueda Auto and battery maker Gotion High-Tech (002074.SZ), was reported to be targeting Japan’s mass market with four models by 2029, built initially at a plant in China.

The conflicting statements highlight the immense challenge Chinese automakers face in penetrating Japan's mature auto market, which has been slow to adopt EVs. While Autobacs is pursuing a zero-emission vehicle strategy, its cautious statement suggests that a full-scale partnership with a Chinese giant like Chery requires navigating significant local market and competitive hurdles before any 2027 launch.

The Reported Deal Structure

According to reports from Nikkei Asia and AASTOCKS, Chery had established a joint venture in Singapore named Electric Mobility Technology. The partnership aimed to launch a proprietary EV brand in Japan, leveraging Chery's technology from the Chinese market, including advanced driver-assistance features.

The ambitious plan involved rolling out four distinct models by 2029. Initial production was slated to occur at a Yueda Auto plant in China, with the possibility of shifting manufacturing to Japan as early as 2030. Other investors in the venture reportedly included Chinese battery manufacturer Gotion High-Tech and Japanese coating equipment firm Anest Iwata (6381.JP).

Autobacs' Cautious Approach

Autobacs Seven, a major Japanese auto parts retailer with approximately 1,200 stores, moved to temper expectations. In its official clarification, the company emphasized that its investment in Electric Mobility Technology was part of its long-term "Beyond AUTOBACS Vision 2032." This strategy positions zero-emission vehicles as a key growth area.

However, the company stressed that the existence of the investment does not equate to a finalized deal to sell Chery-developed vehicles. The statement makes it clear that Autobacs is still in an exploratory phase, evaluating how best to use its extensive retail and service network for potential future EV maintenance and sales. This public distancing suggests the complexities of introducing a new, foreign mass-market brand into a market dominated by domestic giants like Toyota and Nissan, where EV adoption remains below 3% of new car sales.

This article is for informational purposes only and does not constitute investment advice.