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Chery Just Lined Up A Kei Car For Japan, And Suzuki Should Be Worried

  • Chery is entering Japan through a joint venture called Emta.
  • The first model is a boxy electric kei hatchback due in 2027.
  • A Japanese factory could come after 2030 if sales targets land.

Chery’s global appetite shows no sign of slowing, and the Chinese brand has now identified its next target: Japan’s kei car segment. The company is taking part in a newly formed joint venture built around electric vehicles, the most protected corner of one of the world’s most insular markets.

The Singapore-based outfit, EMT (Electric Mobility Technology), is a five-way alliance. Chery and fellow Chinese automaker Jiangsu Yueda Automobile Group sit alongside Japanese retailer Autobacs Seven, Chinese battery maker Gotion, and Japanese industrial painting firm Anest Iwata. The venture will trade under the Emta brand, short for Easy, Made To All.

More: Chery Borrowed The RS6’s Face, The A5’s Profile, And The A7’s Tail, All On One Sedan

According to Car News China, Emta has staffed itself with executives drawn from Honda, Mazda, and Nissan. The CEO is He Xiaoqing, whose track record includes senior posts at Changan Ford, SAIC, and Chery itself.

The Emta #01 Leads The Charge

The opening act is the Emta #01, a small electric hatchback due in production form in the second half of 2027. The styling is boxy and clean, with covered-grille LED graphics that hint at Suzuki more than at anything Chinese. Rear sliding doors round out the package, simplifying access to a cabin that, by kei standards, needs every millimeter it can find.

 Chery Just Lined Up A Kei Car For Japan, And Suzuki Should Be Worried

The Emta #01 measures 3.4 m (133.9 inches) long, putting it in the same footprint as Chinese microcars like the Chery QQ Ice Cream. Full technical specs are still under wraps, but the car will ride on Chery underpinnings, almost certainly with a Gotion battery pack. Expect the latest infotainment and connectivity tech on board, along with Level 2 ADAS.

More: BYD’s Tiny EV Has Japan’s Best-Selling Kei Car Rethinking Its Entire Future

Production will take place in China, with Autobacs Seven handling sales in Japan. Emta wants the price to land somewhere close to a conventional ICE-powered kei car. When it arrives next year, the Emta #01 will be only the second kei car of Chinese origin, following the BYD Racco.

Following the 2027 launch, Emta plans to expand its lineup with three additional EVs by 2029. The official teaser suggests that those will be a small hatchback, a small crossover, and a minivan. The long-term goal is to establish a Japanese factory after 2030 if sales targets are met.

 Chery Just Lined Up A Kei Car For Japan, And Suzuki Should Be Worried

EMTA

Chery-Backed Brand Wants To Invade Japan With An Electric Kei Car

  • Chery forms Emta joint venture to sell EVs in Japan.
  • The first model lands in H2 2027 with modern styling.
  • The lineup will expand with three more EVs by 2029.

Chery is a Chinese brand with an impressive global expansions over the past years, and since the world keeps buying, the sky’s the limit. The company has now set its sights on Japan’s kei car segment, participating in a newly established joint venture focused on EVs.

Singapore-based firm EMT (Electric Mobility Technology) is a multi-party alliance splitting equity between Chinese automakers Chery Automobile and Jiangsu Yueda Automobile Group, Japanese retail company Autobacs Seven, Chinese battery maker Gotion, and Japanese industrial painting firm Anest Iwata. The joint venture will operate under the Emta brand, which is short for Easy, Made To All.

More: Chery Borrowed The RS6’s Face, The A5’s Profile, And The A7’s Tail, All On One Sedan

As reported by Car News China, Emta’s management team includes people with experience at Honda, Mazda, and Nissan. The CEO is He Xiaoqing, whose background includes executive roles at Changan Ford, SAIC, and Chery.

The first model will be the Emta #01, a tiny electric hatchback scheduled to debut in production form in the second half of 2027. The EV adopts a boxy silhouette, clean surfacing, and a face reminiscent of Suzuki with modern LEDs integrated within a covered grille. It also has rear sliding doors, allowing easier access to the cabin.

 Chery-Backed Brand Wants To Invade Japan With An Electric Kei Car

The Emta #01 measures 3.4 m (133.9 inches) long, which is similar to Chinese microcars like the Chery QQ Ice Cream. Technical specifications remain under wraps, but the model will ride on Chery underpinnings, likely fitted with a Gotion battery pack. It is also expected to offer the latest infotainment and connectivity tech, along with Level 2 ADAS.

More: BYD’s Tiny EV Has Japan’s Best-Selling Kei Car Rethinking Its Entire Future

Production of the EV is scheduled to take place in China, with Autobacs Seven being responsible for sales in Japan. Emta wants to offer it at an affordable price tag, comparable to ICE-powered kei cars. When it arrives next year, the Emta #1 will be the second kei car of Chinese origin after the BYD Racco.

Following the 2027 launch, Emta plans to expand its lineup with three additional EVs by 2029. The official teaser suggests that those will be a small hatchback, a small crossover, and a minivan. The long-term goal is to establish a Japanese factory after 2030 if sales targets are met.

 Chery-Backed Brand Wants To Invade Japan With An Electric Kei Car

EMTA

Canada’s New Chinese EV Quota Has A Tesla-Sized Problem Already

  • Up to 49,000 Chinese EVs yearly qualify for lower Canadian tariffs.
  • The first 24,500 reduced-tariff permits stay open through August 31.
  • Chery, Geely, and BYD are lining up new EV launches for Canada.

Worried that automakers like Tesla could vacuum up the bulk of its low-tariff Chinese EV quota in one gulp, the Canadian government is reportedly rethinking how to dole out the import permits before they all end up in one company’s hands.

Under Canada’s new trade arrangement with China, up to 49,000 China-built EVs can be imported each year at a slashed 6.1 percent tariff, a steep drop from the punishing 100 percent duty. The first batch of 24,500 permits has been on the table since late March and is supposed to stay available through August 31, handed out on a first-come, first-served basis.

Read: Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop

According to Bloomberg, not a single permit has actually been issued yet. That window is about to get crowded, though, because Tesla just confirmed it will start selling a Chinese-built Model 3 in Canada at a sharply lower price. The new entry point is CA$39,490 before destination, roughly US$29,007, which guts the old floor set by the Model 3 Long Range AWD at CA$79,990, or about US$58,700.

Canada Wants Equitable Access For All Chinese Brands

 Canada’s New Chinese EV Quota Has A Tesla-Sized Problem Already

In addition to Tesla, through its Volvo and Polestar brands already operating in Canada, may also be positioned to secure part of the initial allocation. Once the second half of the 49,000 permits becomes available after August 31, officials may revise the system and assign specific reduced-tariff allocations to individual automakers, giving more brands access to the program.

These brands could include newcomers to the Canadian market, such as BYD and Chery. According to unnamed officials, the quota system may eventually expand to favor companies that establish operations in Canada, including local assembly facilities.

News of these potential changes comes just after it was revealed firms including BYD, Cheyr, and the Geely-owned Zeekr brand have launched a hiring spree across Canada, eager to quickly set up shop and start selling their vehicles locally.

 Canada’s New Chinese EV Quota Has A Tesla-Sized Problem Already

Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop

  • BYD reportedly plans 20 Canadian sales sites during 2026.
  • Zeekr has started hiring senior staff for Toronto operations.
  • New tariff rules sharply lower Chinese EV import costs there.

The floodgates are creaking open in Canada. Just as Tesla relaunched its Chinese-built Model 3 in the country, several of China’s most aggressive automakers are putting the pieces in place to follow it through the door. Geely, Chery, and BYD are all moving on the Canadian market.

As part of its preparations, Chery has brought two SUVs from its Jaecoo brand to Toronto, equipped with Ontario manufacturer license plates. Autonews Canada identified the vehicles as Jaecoo E5s, an all-electric SUV that starts at about $37,000 in Australia, where the currency is roughly at parity with the Canadian dollar.

While these vehicles are thought to be in Canada only temporarily, their appearance comes shortly after the automaker sent almost two dozen local dealer representatives to the Beijing Auto Show, giving them a firsthand look at the Chinese market.

Read: Americans Pay $37K For The Cheapest Tesla, Canada Got A Chinese One For $29K

It’s not just Chery that’s making important moves in Canada. According to a report from last month, BYD plans to open 20 sales locations this year. The company reportedly intends to work with local partners to establish those stores. It’s also said to be actively considering building its own factory in Canada, or perhaps acquiring one from an established brand.

Zeekr Gears Up

 Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop

In the not-too-distant future, Canadians could have several new models from the Geely Group to choose from. One of the most exciting brands prepping for a local launch is Zeekr, with confirmation that it recently began hiring for seven senior-level positions in late April, all based in Toronto and including positions in sales, legal, marketing, and aftersales. The hiring push also includes product and network development roles.

Geely is also looking to hire someone to serve as Zeekr’s head of network development, responsible for evaluating dealer business plans and establishing a dealer operations guide.

The rush for Chinese brands to launch in Canada comes just months after the two nations signed an important new trade deal. Through this deal, tariff rates for 49,000 EVs imported from China will be slashed from 100 percent to just 6.1 percent. Importantly, the quota of 49,000 eligible vehicles will be allocated on a first-come, first-served basis, meaning automakers need to act quickly. Only 24,500 permits will be issued in the first six months of the program.

 Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop
Zeekr Mix

China Told Automakers To Stop Cutting Prices, BYD Just Made It Worse

  • BYD’s average price cuts reached about 10 percent across its range in March.
  • China’s auto industry is still grappling with serious overcapacity issues.
  • Officials have warned carmakers against triggering a damaging price war.

The Chinese auto industry has spent the better part of two years waiting for the price war to burn itself out. It hasn’t, and car companies are showing no signs of relenting. Facing declining sales, BYD is instituting significant price cuts, as are key rivals Geely and Chery.

Almost a year has passed since Chinese authorities sat down with the heads of more than a dozen carmakers and pressed them to call off the price war before it became a race to the bottom. The country’s market regulator called for efforts to “comprehensively rectify ‘involutionary’ competition,” borrowing a phrase Premier Li Qiang has used for the industry’s increasingly self-defeating behaviour.

Read: Dozens Of Chinese EV Brands Could Collapse In The Next Year

It appears little has changed. Data from Bloomberg reveals the average price reduction across BYD models increased to 10 percent in March. Meanwhile, Geely and Chery are running discounts of around 15 percent, though those have held roughly steady through the past twelve months.

China Doesn’t Have Enough Car Buyers

 China Told Automakers To Stop Cutting Prices, BYD Just Made It Worse

Overcapacity within China’s automotive sector is at the root of the problem. Last year, approximately 23 million new vehicles were sold in the country, but its car factories have the capacity to produce 55.5 million vehicles a year. This has prompted many local brands to ramp up vehicle exports. Last month, EV exports from China more than doubled.

Now facing greater scrutiny from regulators, companies, including BYD, are being forced to pay suppliers much more quickly than in the past. Prior to local authorities getting involved, automakers had been delaying invoice fulfillment for months at a time, allowing them to offer deep discounts to spark sales. Now, invoices must be paid more promptly, increasing liabilities on carmakers’ balance sheets. For BYD, this has pushed its debt-to-equity ratio to 25 percent.

“It seems to be good for the customers, but it’s not — manufacturers are losing money,” the secretary general of the International Organization of Motor Vehicle Manufacturers, François Roudier, said. “It hurts the full system.”

 China Told Automakers To Stop Cutting Prices, BYD Just Made It Worse
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