Chery to Enter Japan Through an Autobacs Partnership

Chery Automobile, through its joint venture Electric Mobility Technologies (EMTA), is set to enter Japan’s competitive kei-car market with a compact electric vehicle slated for release in 2027. The Singapore-based venture combines Chinese EV technology with Japanese expertise in product development, retail, and after-sales service. EMTA will compete directly with BYD, which is also preparing to launch its own kei EV, the Racco, signalling increased activity from Chinese automakers in Japan’s small electric vehicle segment. The partnership structure reflects a blend of Chinese and Japanese stakeholders, with Chery and Jiangsu Yueda Automobile Group each holding just over 27 percent, while Japanese automotive retailer Autobacs Seven and battery supplier Gotion High-Tech maintain significant shares. Production will take place at Yueda’s factory in China, a facility with a history of manufacturing vehicles for Kia and HiPhi. Autobacs Seven will manage sales and service in Japan, while Japanese firm Anest oversees quality control, ensuring the vehicles meet local standards. EMTA’s leadership team draws on extensive experience from major automotive companies in both China and Japan, including former executives from Changan Ford, Nissan China, Honda, and Mazda. The first model, tentatively named EMTA #01, is a boxy, five-door kei-class EV designed to comply with Japan’s strict size regulations and deliver safety on par with larger vehicles. The company plans to expand its lineup to include a hatchback, SUV, and minivan by 2029, with potential local manufacturing in Japan under consideration if sales justify further investment. This move intensifies competition between Chery and BYD as both firms seek to strengthen their presence in international markets. While pricing details for the EMTA #01 remain undisclosed, executives have indicated it will be competitively priced against petrol-powered kei cars. Chery’s strong export performance, leading Chinese vehicle exports in April 2026, underscores its ambition to grow its footprint beyond China, with Japan representing a key strategic market for its electric mobility ambitions.