Chinese automaker Chery and Japanese automotive parts retailer Autobacs Seven will jointly sell electric vehicles in Japan beginning in 2027.
The move will expand the sales network in Japan for EVs designed by Chinese automakers, which have been leading the sector in EV technology.
Chery ranked 12th globally in new vehicle sales in 2025. Autobacs operates approximately 1,200 stores worldwide and sells not only automotive accessories but also used cars. Autobacs has expanded its business to include new vehicle sales for companies such as China’s BYD and South Korea’s Hyundai Motor, and has invested in Tokyo-based ASF, an emerging EV manufacturer.
The companies have established a joint venture in Singapore. Chinese state-owned Jiangsu Yueda Automobile Group, Chinese battery manufacturer Gotion High-tech, and Japanese painting equipment manufacturer Anest Iwata have also invested in the joint venture. The venture will launch its own EV brand for Japan.
The vehicle will adopt technology developed by Chery for the Chinese market and will be equipped with advanced driver assistance features. Pricing details are still being finalized, but the companies intend to target the mass market. In Europe and Southeast Asia, Chery offers a lineup of models that feature comprehensive equipment at competitive prices.
The joint venture plans to introduce four models by 2029 and is also considering overseas expansion. Production will initially take place at Yueda Automobile’s factory in China, with plans to consider production in Japan starting in 2030 or later.
Despite being one of the world’s major car markets, Japan’s EV growth potential has remained largely untapped, the partners said. According to sector data, new passenger EV sales in Japan surged 80% in the January-March period from a year earlier to 26,959 units, lifting EV penetration above 2.5% for the first time.
Sales and maintenance operations will be built around Autobacs’ nationwide store network, which will underpin the venture’s launch in Japan. In its first year, the company plans to set up several hundred sales and service locations, keeping store opening costs low while broadening customer touchpoints.
In Japan, established domestic automakers such as Toyota Motor have spent decades building nationwide dealership and service networks. For new entrants, a physical retail and support footprint remains essential not only to raise brand awareness but also to earn consumer trust. The heavy upfront investment needed to build such a network from scratch, however, has long been a major hurdle for foreign brands.
BYD entered Japan’s passenger car market in 2023 and, as of April, had around 70 sales locations, including those still being prepared. Its goal is to have 100 outlets.
Sales momentum has also fallen short of expectations, with policy-related headwinds emerging as one constraint. Under Japan’s EV subsidy framework, the incentives for BYD models, built entirely in China, including their battery systems, are nearly JPY 1 million (USD 6,345.7) lower than those for cars produced by Toyota Motors and other Japanese brands.
With industry competition intensifying in China, Chery is expanding its overseas sales. It sold 2.806 million vehicles worldwide in 2025, right behind Nissan Motor, which placed 11th globally. The Chinese company is increasing exports to Europe, with its market share in the UK rising to 5.9% in the January-March quarter.
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.
Note: JPY figures are converted to USD at rates of JPY 157.59 = USD 1 based on estimates as of May 13, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.