A relatively unknown car brand is making its debut in the UK, ready to compete with big names like Nissan and Kia. Chinese company Omoda is the latest entrant into the UK market, introducing two incredibly affordable new models. The basic model of their Omoda 5 will be priced at just £25,235, while the electric version, the E5, will cost up to £33,055. With these prices, it seems Omoda is aiming to compete with popular models like the Kia Sportage and Nissan Qashqai, and perhaps even make a dent in the UK's second-hand car market.
Speaking to CAR Magazine, Omoda's UK product manager Oliver Lowe said: "We're at a price point where actually we're not that far off some used car purchases, but you get a brand new car, you've got that confidence of the warranty, you've got that confidence of the breakdown cover for it. It's something new and fresh, it's yours for the first time."
The company's UK expansion is part of a broader global strategy. Omoda was established in 2022 as a subsidiary of Chery, a state-owned Chinese car company. Chery has been exporting cars to over 80 countries since 2001 and is China's 5th largest auto group. In 2023, Chery exported almost 2 million cars, mostly fossil-fueled.
Originally, Chery intended to introduce its brand in Europe with another of its brands, Exeed, but this was postponed due to the Covid-19 pandemic. Like most emerging brands from the Chinese car industry, Omoda has heavily invested in EV technology. However, unlike other Chinese brands entering the UK market, such as Aiways, BYD and Ora, Omoda will also offer a range of petrol and hybrid cars.
The Omoda 5 and E5, equipped with a 1.6-litre turbo petrol engine, are available in two trim levels; Comfort and Noble. Standard features include 18-inch alloy wheels, wireless Apple CarPlay and Android Auto, a 50W wireless charging pad, heated steering wheel, reversing camera and keyless entry.
The driver assistance package includes adaptive cruise control, blind spot detection and traffic jam assist.
Omoda will provide customers with a seven-year/100,000-mile warranty on all its cars, which can be ordered now with deliveries set to start later this year. The Chery-owned Chinese brand already sells cars in more than 40 global markets, including continental Europe, Africa, Australia and other Asian countries.
From this point, Omoda plans to launch at least two models next year, with the first of those likely to be a larger SUV that could be comparable in size to the Range Rover Sport and Porsche Cayenne.
Omoda's Expansion Plans: New Models and a Sportier GT
Omoda is planning to rapidly expand its lineup and that of its sister marque, Jaecoo, following its market debut this year. A sporty version of the Omoda 5, one of the first models to hit the UK, is said to be in the works to enter the lineup in the GT class. The tuned suspension and interior upgrades to the petrol-powered car have already been devised at the firm’s European headquarters and are currently being validated back at headquarters.
The GT will potentially be a UK-specific development. An insider stated that “the UK is a level above Europe in how they want a car to handle”, and the company feels that a sportier version will help establish a foothold in the UK.
European-spec cars are being adapted for tastes and conditions on the Continent at the firm’s Frankfurt engineering base, with work including a reduction in the driver-assistance sensitivity for narrower European roads.
Omoda and sister brand Jaecoo, which will launch its J7 SUV early next year, will rapidly expand its model line-up to as many as seven cars by the end of 2026, with a combination of petrol, hybrid, plug-in hybrid and electric available, depending on model.
The petrol Omoda 5 and electric E5 pair kicked off the brand’s UK arrival and are aimed at rivalling the Nissan Qashqai. But the smaller Omoda 3, and larger Omoda 7 and Omoda 9 are all in the pipeline over the next 24 months, alongside the Jaecoo J5 and J8.
Both brands are owned by Chery, which has been China’s largest exporter for the past 20 years, and Omoda/Jaecoo already has a network of 60 UK dealers in place, rising to 100 by the end of this year. A European production base is on the way in Spain later this year using a former Nissan factory.
Navigating the Future of the UK Car Market
With Omoda's aggressive expansion plans, they are taking a significant step towards establishing themselves in the UK car market. The company's success will hinge on a number of factors, including the reception of its new models, its ability to compete on price and its success in building brand loyalty.
The UK car market is evolving rapidly, with the increasing popularity of electric vehicles and the government's ambitious targets for reducing carbon emissions. Omoda is positioned to capitalize on these trends with its diverse range of petrol, hybrid and electric vehicles. However, the company will face stiff competition from established brands such as Nissan, Kia and Volkswagen, which have a strong presence in the UK market.
Ultimately, Omoda's success in the UK will depend on its ability to offer compelling products and services that meet the needs and expectations of UK consumers. The company's focus on affordability and technology could give it a competitive edge, but it will need to build a strong brand identity and cultivate relationships with customers to succeed in the long term.
Omoda: A Rising Star in the Global Automotive Landscape
While Omoda's success in the UK is yet to be fully realized, the company has already demonstrated a strong commitment to its global expansion plans. The launch of the Omoda 5 and E5 SUVs in the UK is just the beginning. The company is planning to introduce a range of new models in the coming years, including a sporty GT version of the Omoda 5.
With its focus on technology, affordability and a diverse range of powertrain options, Omoda is well-positioned to compete in the evolving global automotive landscape. The company's success will depend on its ability to build a strong brand identity, cultivate relationships with customers and deliver on its promises. However, with its strong backing from Chery and its ambitious expansion plans, Omoda has the potential to become a major player in the global automotive market.
