"ICE vs. EV: Is Chery’s Product Strategy Balanced or Too Risky?"

Is Chery’s explosive sales growth a result of a well-balanced product mix, or is it heavily dependent on just a few models? Can its aggressive pricing strategy sustain long-term success, or will it lead to profitability challenges and brand perception risks? With EVs now contributing nearly half of total sales, is Chery truly leading Indonesia’s electrification shift, or is this just a temporary trend fueled by early adopters? And most importantly—can Chery expand beyond its current bestsellers, or will it struggle to compete in key segments like compact SUVs and hybrids? ???

Chery Indonesia Product Mix Performance: A Deep Dive Analysis

Chery Indonesia has established itself as one of the fastest-growing automotive brands in 2025, with strong wholesale and retail sales momentum. However, a closer look at its product mix performance reveals a clear divide between its ICE and EV models, highlighting both strengths and vulnerabilities in its market strategy.

How well is Chery’s ICE lineup competing against established Japanese and Korean rivals? Is Chery’s EV success sustainable, or is it an early trend fueled by aggressive pricing? This deep dive into Chery’s product mix performance answers these critical questions and explores the brand’s future trajectory.

?? Chery’s January 2025 Product Mix: ICE vs. EV Sales Performance

?? Internal Combustion Engine (ICE) Models: Still the Backbone, But Facing Competition

? Strengths of Chery’s ICE Portfolio:

• Tiggo 8 leads the lineup (38.1% share), proving strong demand for a value-driven premium SUV.
• Chery’s pricing advantage makes it competitive against Japanese brands like Toyota Fortuner and Honda CR-V.

? Weaknesses of Chery’s ICE Portfolio:

• The compact SUV segment (Tiggo 7 & Tiggo 5X) is underperforming, capturing only 4.6% of total sales.
• The Omoda 5 (7.4%) struggles to gain traction against Honda HR-V, Toyota Corolla Cross, and Hyundai Creta.
• Unlike Toyota and Honda, Chery lacks a hybrid offering, making it vulnerable as buyers shift towards hybrid and EV alternatives.

? Electric Vehicles (EVs): A Surprising Growth Driver

? Strengths of Chery’s EV Portfolio:

• The Chery J6 (38.4%) is the best-selling model, surpassing even the Tiggo 8, proving that EV adoption is accelerating in Indonesia.
• EVs now account for nearly 50% of Chery’s sales, showing Chery’s ability to capitalize on early EV market demand.
• The Omoda E5 (11.5%) has potential in the premium crossover EV segment, positioning itself against BYD and Hyundai’s Ioniq lineup.

? Weaknesses of Chery’s EV Portfolio:

• EV infrastructure in Indonesia is still developing, which could limit further adoption.
• While EV models sell well now, long-term demand remains uncertain as buyers may hesitate due to charging concerns and resale value.
• Unlike BYD, Chery does not have a wide range of affordable EV options, making it vulnerable if a pricing war intensifies.

?? Key Observations from Chery’s Product Mix Performance

1?? EV Models Are Performing as Well as ICE Models – A Rare Trend

• Unlike many brands where ICE vehicles still dominate, Chery is experiencing a near 50-50 sales split between ICE and EV models.
• This suggests that Chery’s aggressive pricing and strong EV push are working, making it one of the few brands successfully driving EV adoption at scale.

2?? The Chery J6 is a Game-Changer, But Can It Sustain Momentum?

• The J6 (EV) is Chery’s best-selling model (423 units, 38.4% share), proving early EV adopters are choosing Chery over competitors.
• However, will this demand hold once government incentives shift or charging networks face delays?

3?? Chery’s ICE Portfolio is Overly Dependent on the Tiggo 8

• The Tiggo 8 (38.1%) is the only strong performer in the ICE lineup, while compact SUVs like the Tiggo 7, Tiggo 5X, and Omoda 5 are struggling.
• Without better traction in the mass-market SUV segment, Chery risks falling behind Honda HR-V, Toyota Corolla Cross, and Hyundai Creta.

?? Challenges & Risks for Chery Indonesia

?? 1. Over-Reliance on a Few Models

• 76.5% of sales come from just two models (J6 and Tiggo 8).
• If their demand declines due to competition or market shifts, Chery lacks a well-balanced lineup to sustain momentum.

?? 2. ICE Models Need Better Compact SUV Positioning

• Chery is missing traction in the subcompact SUV category, a space dominated by Toyota, Honda, and Hyundai.
• Tiggo 7 and Tiggo 5X must be repositioned or refreshed to stay relevant.

?? 3. EV Market Growth is Still Uncertain

• While Chery’s EV sales are strong now, charging infrastructure remains a limiting factor in Indonesia.
• Competitors like BYD and Hyundai are expanding fast, meaning Chery must innovate beyond just pricing to maintain a leadership position.

?? Strategic Recommendations for Long-Term Success

? Expand Hybrid Offerings – To compete with Toyota Hybrid and Honda e:HEV models, Chery must introduce hybrid options to capture buyers hesitant to go full EV. ? Strengthen ICE Compact SUV Strategy – Improve the Tiggo 7 and Omoda 5 lineup with better pricing, marketing, and financing options. ? Enhance EV Ecosystem & Charging Partnerships – Work with government and private sector players to accelerate charging station availability. ? Optimize Product Lifecycle Planning – Chery must reduce its dependence on new launches by ensuring strong after-sales support and long-term value retention.

?? Conclusion: Chery is Leading EV Growth, But ICE Challenges Remain

Chery’s near 50-50 split between ICE and EV sales is a unique market position, proving its ability to drive early EV adoption while maintaining a strong presence in ICE categories. However, its ICE lineup lacks diversity beyond the Tiggo 8, leaving gaps in the highly competitive compact SUV market.

To secure long-term dominance, Chery must expand hybrid options, strengthen its compact SUV positioning, and invest in charging infrastructure partnerships. If executed well, Chery has the potential to become Indonesia’s leading premium Chinese automotive brand in both ICE and EV segments. ??