The former Tesla showroom is currently being fitted out for its new tenant. Picture: ChiswickW4.com
December 22, 2024
A Chinese motor manufacturer is aiming to expand its presence in the UK market by using a Chiswick landmark as a base for its sales effort. The company which already has offices in Chiswick Business Park, is to have a new dealership in the Tesla showroom by Hogarth Roundabout for its Omoda and Jaecoo brands.
The sales push locally is to be headed up by Steve Young, who has been appointed by Çetaş Otomotiv which manages the manufacturer’s sales in the Turkish market.
The intention is to grow the single dealership in Chiswick, which will be known as Auto West London, into a small chain with a focus initially on south-east England. Although Omoda Jaecoo UK, is based in Building 7 at the Chiswick office development, Auto West London will operate independently as one of the company’s franchised dealers across the UK.
The landmark building by the Great West Road has been unoccupied for some time causing concern to nearby residents. Work is ongoing to recommission the building and it will be rebranded in the New Year with trading expected to start in the Spring.
Mr Young said, “The challenges include the location of our first site – Chiswick, West London, normally a ‘no go’ area for private dealer investors due to the high operating costs in large metro areas. The site is sales only, requiring a separate aftersales facility.
“As a new dealer brand with a new OEM, we have no established customer base or parc to leverage which will put a heavy emphasis on digital marketing to create awareness.”
The Omoda and Jaecoo brands are owned by Chery Automobile Co. Ltd., which Is based in Wuhu in Anhui Province and is China’s fifth largest motor manufacturer and the largest exporter. Both brands are for export sale only and not available in China.
The Omoda is a sports utility vehicle which is available in both electric and petrol versions with the on the road price for the former being £25,200 and the EV costing £33,000. According to Chery, the letter "O" from Omoda is derived from the chemical symbol for oxygen while "Moda" means "modern". It was initially exported into Russia and Kazakhstan.
The Jaecoo brand is aiming at the higher end of the market and its first international sales were made in Russia last year.
Omoda Jaecoo UK is based in Chiswick Business Park. Picture: ChiswickW4.com
The UK currently has zero tariffs on Chinese automobiles due to its independent trade policies after leaving the European Union. The absence of tariffs on Chinese cars is a deliberate choice to encourage trade and potentially attract investment from Chinese automakers into the UK, such as setting up manufacturing plants or distribution networks. Most other developed economies place some level of tariffs on Chinese made vehicles.
The government hopes that this will strengthen economic ties with China and accelerate the transition from internal combustion engine (ICE) to electric vehicles (EV) with a view to phasing out sales of new ICE vehicles by 2035. Chinese EVs tend to be more affordable that those made in other countries.
Chinese brands already have a 4.8% share in the UK mainly through MG Motor sales which is now owned by SAIC Motor. There were 5,303 MG Motor vehicles sold in the UK this October.
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