Chery boss wants to enter the US market, warns America risks falling behind

Chery’s international boss has warned the United States could fall behind other car markets on technology without stronger competition, as the Chinese automaker remains interested in selling cars there.

Speaking to Australian media, including CarExpert, in Wuhu, Chery International president Zhang Guibing argued limited competition had consequences for both vehicle prices and the pace of development.

He pointed to changes in vehicle technology in Australia and Europe, and questioned how the US market would compare in five to 10 years.

“Five years later, 10 years later, if there is not any good competition inside, so I think maybe outside of America all the cars are completely different, and maybe the US is still a very old car. I don’t know what the situation is," he said.

“But yesterday some of the journalists say, ‘Oh now in the US normally the car price is about 60,000 US dollars.’ The car price is very high. I say because there's no competition, so the customer need to pay more money.”

Kelley Blue Book’s latest figures put the average US new-vehicle transaction price at US$50,562, or about A$72,000, in September 2026. That was up 0.7 per cent on a year earlier.

There was a substantial difference between vehicle types. The average compact SUV transaction was US$37,614, about A$53,600, while full-size pickups averaged US$67,573, about A$96,300.

Kelley Blue Book attributed the modest annual increase partly to a greater share of sales in cheaper segments, including small SUVs, compact cars, and smaller pickups.

Chery faces significant policy barriers to a US launch. The US raised its Section 301 tariff on Chinese-built electric vehicles (EVs) to 100 per cent in 2024.

The Department of Commerce’s Connected Vehicle Rule also restricts certain Chinese and Russian software, and sales by vehicle manufacturers with sufficient links to either country. The relevant prohibitions apply from the 2027 model year and can cover vehicles manufactured in the US.

The department cites national security risks, including access to drivers’ personal information and the potential for vehicles to be manipulated remotely. The rule includes a process for manufacturers to seek authorisation.

Polestar was denied authorisation to sell 2027 model-year vehicles in the US in June 2026, despite building its Polestar 3 SUV in South Carolina.

Volvo, which is also majority-owned by Geely, received authorisation. Polestar said it would continue selling existing Polestar 3 and Polestar 4 stock and supporting US customers, including through its service network.

Ford is also preparing for the prospect of greater Chinese competition. CEO Jim Farley reportedly told employees earlier this year he expected Chinese automakers to enter the US within five to 10 years.

Chery chief engineer David Xianqiang Lu discussed the automaker's US ambitions with CarExpert in July 2025, pointing to the relevance of its Australian operations.

“I believe the Australian market can help us learn a lot about the USA market,” Mr Lu said at the time.

Mr Lu pointed to towing requirements as one area of common interest. He also highlighted the benefit of testing in Australia while China was in the opposite season.

China was Australia’s largest source of new vehicles in September 2026, with 42,358 deliveries, or 38.9 per cent of the market. That includes vehicles sold by non-Chinese brands.

Chery itself delivered 4205 vehicles here that month, up 21.8 per cent on September 2025, while Omoda Jaecoo recorded 2310 deliveries.

Mr Zhang didn't announce a US launch date or model range, and acknowledged the regulatory obstacles.

“But of course, based on today’s situation, it’s a little difficult because of too many new regulations or some other things,” he said.

He nevertheless maintained Chery’s interest in entering the market.

“But of course we are very interested to come inside. I hope in the future, maybe we could find some good way and can come inside.”

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